https://www.9news.com.au/national/australia-post-worst-year-since-2015-major-loss-decline-in-letters-online-shopping/144ccfe2-0ae0-47c6-84c1-3089e56cd0b7
Australia Post is on track for its first full-year loss since 2015, according to CEO Paul Graham.
Graham confirmed that "the headwinds facing our business have never been stronger".
"Our letters business continues to decline, as volumes fall and costs increase," he said.
"Changing customer behaviours are also impacting our retail network, with continuing digitisation resulting in declining retail transactions at Post Offices."
AusPost Group revenue dropped $4.69 billion in the first half of the financial year to December 31, 2022 - down 2.4 per cent on the first half of the previous financial year.
Group profits before tax plummeted 88.2 per cent, from $199.8 million to $23.6 million.
Losses in the letter section of the business were dubbed a major factor in the group's recent profits, rising from $69.9 million in the first half of last financial year, to $189.7 million in the first half of this one.
My views - All that deferred revenue in the form of postage stamps
I don't think it's just decline in letters or more competition from the likes of Sendle or Parcelmonkey. I also think the recognition of deferred revenue from printing all those postage stamps decades ago when people were collecting stamps like mad could be another contributor. As I do some buying and selling on Ebay, I noticed Australia Post have been making efforts to stop people using old postage stamps by using their tracked large letter prepaid envelopes for $6.40 which you can't stick any stamps on compared to the untracked large letter price of $3.60 (for 250g) or $6 (for 500g). Bear in mind the 50c premium over untracked buys you insurance of up to $100 so it's great value. Not to mention the plastic prepaid parcel satchels are quite handy too as they don't charge extra on the rate and you can't stick postage stamps on those.
Despite Auspost's woes, I think those that have inherited a stamp collection would be using it to get a discount a two on their letters and parcels rather than keeping them for historical purpsoe. Not sure how Australia Post can tackle this challenge. And changing the Post office from a stamp collectors paradise to a mini Officeworks would further push more postage stamps out of collections as "deferred revenue".