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Australia Post's first loss in 30 years as letter writers disappear

Don Arnold/Getty Images

The dwindling number of letters hitting the mail box pushed Australia Post to a full year loss of $222 million, its first in more than three decades.

The loss, less than forecasts of $500 million, compares to a $116.2 million profit in 2014.

Revenue was stable at $6.37 billion, with the parcel business representing more than half at $3.21 billion.

The number of letters posted fell by 7.3% as people continued the switch to electronic communication. Losses in the mail business grew to $381 million.

“As we had forecast, this has been a challenging but crucial year of transition for our business, reflected in the numbers,” says CEO Ahmed Fahour.

Australia Post is in the middle of a restructure which includes cutting almost 2000 jobs and charging more for services. The competition watchdog, the ACCC, is assessing a proposal to charge a basic postage rate of $1 for letters

The Australia Post Annual Report will be tabled in federal parliament later this year.

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