Australia Post’s future will be limited as long as the company is involved in the traditional mail business, according CEO Ahmed Fahour, despite the company recording a 10.9% increase in group profits to $312 million after tax.
Online shopping and the acquisition of StarTrack drove significant profits but Fahour warned that strong financial and operating results would “soon not be enough to compensate for the losses made in the traditional mail business.”
Traditional mail volumes dropped another 5.4% in 2012/13, the company delivering one billion fewer letters than in 2008/09.
“If unchanged, the widening losses in our traditional letter services will eventually stifle positive developments in our parcels business,” Fahour said, announcing AusPost’s annual results today.
Here’s a table of Australia Post’s performance over the past five years:
The letters business remains a target for the Abbott government which continues to hunt for public assets to privatise in an effort to improve the budget bottom line.
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