Australia Post earns $330m
There are fewer letters and parcels in the mail, but Australia Post still managed to lift its net profit 11.4% in 2002-03.
Despite total mail volume waning almost 20 million items to 5.26 billion, the profit came in at $330.8 million.
The Federal Government-owned Australia Post also provided $304.3 million in dividends to the Government, up from $291.8 million.
The annual report, tabled in Federal Parliament yesterday, showed that gross revenue rose 4.3% in 2002-03 to $3.97 billion.
Chairman Linda Nicholls said the letter market, in which Australia Post has a monopoly, was being hit by electronic substitution and the consolidation of transactional business mail.
She said Australia Post anticipated the challenge in the mid-1990s when it embarked on a major program, FuturePost, to reduce mail processing costs, improve productivity and ensure physical mail delivery remains price competitive.
Ms Nicholls said Australia Post was looking at ways to stimulate growth in direct mail to counter the falling letters volume.
Spokesman Matt Pollard said Australia Post had to compete on more than 60 per cent of its business.
It has almost 4500 branches around Australia with just above 2500 in rural and remote areas.
“Apart from letters, there is a lot of competition in other areas, such as parcel delivery, and for us to get the growth we have been getting shows that we are competitive and delivering what customers want,” he said.
He said the growing popularity of wine clubs was a good example where Australia Post was beating its rivals.
“One of the reasons is we have lower breakage than the others — so it’s not just about cost but quality of service,” Mr Pollard said.
Australia Post said it was the most reliable postal service in the world, with on time letter delivery at a record high of 96.5%.
“The corporation’s overall performance confirms its commercial transformation into a world leading, customer focused postal business,” Ms Nicholls said.
Australia Post managing director Graeme John said the corporation would complete a six year $700 million renewal program of the postal network next year with the full implementation of new large letters and parcels processing technology.
He said the capital investment would further reduce processing costs, deliver improved performance and equip Australia Post to manage future growth in domestic and international markets.
Mr Pollard said there was no indication the government was planning to float Australia Post as it had done with Telstra Corp.
“If they can get the rest of Telstra away, and if that was successful, then maybe they would look at us again,” he said.
