August 30th 2024.
In a recent announcement, Australia Post shared that they experienced a loss of $88.5 million in the last financial year, as more and more customers are opting out of traditional letter services. Despite this, the loss is an improvement from the previous year's loss of $200.3 million, and the overall group revenue has also seen a 1.8% increase to $9.13 billion.
During the past financial year, Australia Post processed 1.76 billion letters across the country, marking a decrease of 12.9%. However, their parcel revenue has continued to grow, reaching $6.46 billion, indicating the "two-speed nature" of their business.
Paul Graham, the CEO and managing director, expressed his satisfaction with the improved business performance, but also acknowledged that there are still significant structural challenges that Australia Post needs to address. He noted that their Post26 strategy and phase one modernization reforms have put the business on the right track, and they are now seeing promising signs of progress.
Despite these improvements, Graham also acknowledged the inevitable challenges that the business is facing, such as the decline of letter services and the shift towards digital transactions. The financial year report also highlighted the oversupply of post offices in metropolitan areas, with some locations having more than 70 post offices within a 7.5km radius.
Graham emphasized the progress they have made with the first phase of modernization, including changes to their Letters business, and their collaboration with union partners to implement these changes throughout their network. They are also focusing on transforming their Post Office retail network in collaboration with their valued licensees, with a particular focus on appropriate compensation for services like Bank@Post.
However, Graham also warned that Bank@Post may face losses in the medium term if bank partners do not offer additional funding. He reaffirmed their commitment to making positive changes for their customers, team members, and the community, but also acknowledged that there is still more work to be done. Further reforms are necessary to ensure the sustainability of Australia Post and its ability to serve communities for another 200 years.
Lastly, Graham encouraged everyone to watch the Paralympic Games Paris 2024 live and free on Channel 9, 9Gem, and 9Now, with ad-free and 4K streaming available on Stan Sport.
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