Australia Post announces first half 2016 pre-tax profit of $1.4 million

  • All customer and community service indicators on-target and all CSO targets met or exceeded
  • HY2016 group profit after tax $16 million, down 84 per cent on this time last year
  • Addressed letter volumes continue to decline, down 9.5 per cent, within forecast range of 8 – 11 per cent
  • Parcels business performing well with domestic volume growth but market pressure from global competitors rising.  

Australia Post today reported a net profit before tax of $1.4 million for the six months ended 31 December 2015. The organisation signalled it expects to return to a full year profit in 2016 following a $222 million loss last year.

The half year result was driven by the accelerated decline in letter volumes across the fixed-cost network. However it is expected changes to the letters service, implemented in January 2016, will reduce the growing losses in the mail business.

Managing Director & Group CEO Ahmed Fahour said the half year result highlighted why reform to the letters service was absolutely necessary to ensure future sustainability of the business.

“We have made a number of difficult decisions recently to help put Australia Post on the right path to take advantage of future growth in eCommerce,” Mr Fahour said.

“Our financial position is significantly stronger as a result and we are further encouraged by the solid performance of both our parcels and Trusted Services businesses.

“It is essential we continue to look for new revenue streams for our business. We are working with our corporate and government customers to build on our demonstrated capabilities offered through our national network, which already includes passport registrations, identity checks, banking and payment services.

“Importantly, we have improved our service performance and will continue to maintain five-day delivery and our vast network of over 4000 Post Offices.

“We will also look to further build on eCommerce partnerships to help our customers buy and sell online, both here in Australia and also internationally. This includes joining Asian eCommerce giants JD.com and Alibaba on some of their most popular online shopping platforms, including 1688.com and Tmall.com.”

Australia Post will release its full year results in September 2016.

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