Online auctions lift post profits
Technology helped Australia Post lift its revenue by nearly 5 per cent to AUD4.5 billion in the year to June 30. It posted a net profit of AUD367.8 million, up AUD26.6 million on the previous year.
Australia Post increased its handling of mail by 1 per cent due to strong growth in international letters and direct marketing, driven by the acquisition of mail and document software provider PrintSoft in 2005. PrintSoft’s products allow businesses to create short-run mail campaigns and one-off letters at near bulk-mail rates.
Meanwhile eLetter Solutions (formerly EDI Post), extended its range of services from traditional bulk production of statements and invoices to web-based direct mail, document archiving and retrieval, and ticket production.
Managing director Graeme John said Australia Post recorded a AUD16.6 million increase in profit from letters this year, following a decline of AUD57 million the previous year (attributed to the rise of email).
For the first time, its parcels and logistics business surpassed letters in earnings, with an increased profit of AUD43 million based on 20 per cent growth.
“This indicates a shift from being primarily a letters business to parcels and logistics,” Mr John said.
“No other company in Australia can match our offering.”
Much of the growth in domestic parcels was in business-to-consumer deliveries, notably through online purchases of wine, electronics, books and DVDs, and from internet trading on auction sites.
Australia Post estimated the local parcel and logistics market was worth AUD70 billion a year, but said competition was fierce.
The company has invested in a joint venture with China Post to provide regional supply-chain services, while its alliance with postal authorities in China, Hong Kong, Japan, Korea and the US has created a regional express courier network.
Its Post Logistics division opened a purpose-built facility near Brisbane airport in February, while similar facilities are being built at Greystanes, NSW, and Altona, Victoria.
Australia Post’s retail and agency businesses recorded a AUD12.5 million profit increase despite revenue falling almost AUD8 million compared with 2004-05.
Mr John said this outcome “was a direct result of our strategy to improve the quality of revenue from our postal outlets”, mainly through agency-based services.
These include banking (Bank@Post), and bill payments (through its own electronic channels and on behalf of branded companies), passport interviews (more than one million last year) and personal identity and verification (100-point ID checks, security cards).
Australia Post also plans to launch an online ID authentication service.
