Australia Post delivered strong community service performance and record financial results in 2007/08, according to the corporation’s Annual Report, which was tabled in Federal Parliament today.

The government-owned postal corporation earned a record pre-tax profit of $592.2 million (up 5.4 per cent on the previous year).

Revenue growth in each of the three core business areas – letters, parcels and retail – boosted overall revenue by 5.3 per cent to $4.96 billion.

Australia Post also met or exceeded all of its community service obligations, including delivering 95.9 per cent of domestic letters on time or early (well above its 94 per cent target).

The Annual Report indicates that letters continue to be a vital form of communication in Australia, with the volume of domestic letters increasing by 2.0 per cent.  This was the strongest growth in letter volumes since 1999/2000.

Australia Post’s Chairman David Mortimer said these results underline the continuing strength of the postal corporation as it prepares to celebrate its bicentenary in 2009.

“These results prove the fundamental strength of our business” Mr Mortimer said.  “We again delivered quality customer service to all Australians while achieving healthy financial returns.”

“Next year we will celebrate 200 years since the appointment of Australia’s first postmaster” he said.  “Australia Post is now widely regarded as one of the most successful postal businesses in the world.  We have earned that reputation by continually adapting our traditional services so that they remain fresh and relevant to the needs of contemporary Australians.”

Some of the key results and highlights from the 2007/08 Annual Report include:

• total mail volumes increased by 1.6 per cent to 5.61 billion items
• a record net profit of $432.2 million
• return on revenue remained stable at 11.9 per cent
• productivity improvement of 2.6 per cent
• an additional 192,000 addresses were added during the year, taking total Australian delivery points to 10.46 million
• the maintenance of Australia’s largest physical retail network with 4,453 postal outlets, including 2,561 in rural and remote areas
• an improvement in workplace safety, with a record low LTIFR of 6.6 lost-time injuries per million work hours.

Australia Post paid $548.1 million in taxes and government charges during the year.  The corporation will return an ordinary dividend of $334.6 million to the Commonwealth (based on 75 per cent of the corporation’s after-tax profit), as well as a special dividend of $111.6 million from 2007/08 earnings.

Over recent years, Australia Post’s parcels and logistics business has surpassed the letters business in terms of its contribution to the corporation’s profit.  This was, again, the case in 2007/08, with parcels and logistics contributing $246.4 million to the bottom line.  By comparison, the letters business made a profit of $148.5 million; while the “agency services and retail products” portfolio contributed $86.5 million.

Managing Director Graeme John said he was delighted with Australia Post’s performance in 2007/08.

“We achieved consistently strong financial and service performance outcomes across all three core business areas” Mr John said. “I’d like to thank all of our people for their continuing focus on improving our customer service standards and the efficiency of our business.”

“A highlight of the year was the increase in the amount of domestic letters that were posted in Australia.  This is the strongest letter volume growth we have recorded since 1999/2000 – and it reinforces our belief that letters will continue to be a vital form of communication well into the future.

“The growth can also be attributed to continued operational efficiency and price restraint.  Even with the recent price increase, only the second in 16 years, Australia still has the third lowest basic postage rate in the developed world.

“Our parcels and logistics business performed well, with volume and revenue growth across all of our domestic and international parcel delivery services.  We also expanded our international logistics capability during the year by opening our first facility in New Zealand and by developing Sai Cheng Logistics, our joint-venture partnership with China Post."

“Our network of 4,453 postal outlets is the nation’s largest physical retail network.  Over recent years we have been evolving our retail offering to place greater emphasis on the product categories and the agency services that we’re already well known for.”

Media enquiries please contact Elizabeth Rich on 02 9202 6650.  Further information available at auspost.com.au/annualreport.

Please note high resolution images of the Chairman and Managing Director are available on request.

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