Australia Post says it lost $200.3 million in 2022/23 and expects further losses in future unless its community service obligations are changed.
Revenue was steady at $8.97 billion, largely flat from the previous year, Australia Post announced on Thursday.
The $200.3 million loss is only its second since it became a self-funded goverment business enterprise in 1989. Last year it made a $55.3 million profit.
But while the group’s parcel business remains healthy, with a 0.9 per cent increase in revenue to $7.3 billion, the group lost $384 million delivering letters in 2022/23, up 50 per cent from the previous year.
Letter volumes fell 7.8 per cent to two billion, despite an increase in business-related letters involving interest rate changes and data breaches.
The average Australian household now receives only 2.2 addressed letters each week – down from 8.5 a week in 2008 – and Australia Post said its mandate to deliver letters five days a week remains one of its most significant costs.
Overall its community service obligations cost the group $442 million, up 27 per cent from 2021/22.
“The headwinds Australia Post is facing into aren’t new and it’s my job along with the leadership team to transform and modernise Australia Post, so it can once again be a financially sustainable business,” chief executive and managing director Paul Graham said in a statement.
“If we do everything in our power to run this business well and we get a favourable regulatory response towards modernisation, I’m confident that Australia Post will return to profit.
“Without this support, the FY23 loss will be followed by many more. Inaction could result in a greatly devalued Australian asset.”
In March, the Albanese government launched a discussion paper on potential changes to Australia Post, including postage rate hikes and relaxing the requirement to deliver letters five days a week.
The results have not yet been announced.
By Derek Rose in Sydney
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