Media Release

AUSTRALIA POST'S 1998 RESULTS
Australia Post Continues Strong Performance

Australia Post remains one of the world's lowest-priced, most reliable and commercially profitable postal enterprises, returning an operating profit of $376.4 million for the 1997/98 financial year.

The result was achieved while maintaining the 45c rate freeze for the sixth consecutive year. The price freeze, which will remain in place until 2003, has already provided postal users with cumulative real savings of $700 million.

Australia Post Chairman, Mrs Linda Nicholls announcing the results in Melbourne said that in conjunction with the Corporation's healthy profit, a record 94.2% of full rate mail was delivered early or on time.

"Productivity growth at 6% over the year was once again a major profit driver, and reflects the strong management and business practices in place at Post," Mrs Nicholls said.

"The outcome was pleasing at a time when we are investing heavily in barcoding equipment, and restructuring our processing and delivery networks," she said.

Key outcomes for the 1997/98 financial year included:

  • a 5.4% or $169.4 million increase in total operating revenue to $3279.1 million;
  • profit before tax and abnormals up 9.9% to $376.4 million - profit after tax and abnormals fell 3.5% to $225 million;
  • a 4% increase in mail volumes to 4.3 billion articles or 18 million per working day with 94.2% of audited mail delivered early or on time;
  • a 6% lift in productivity, bringing cumulative gains of 47.2% since 1989, compared to national average of 24% over the same period;
  • dividend distributions totaling $215.1 (including an $80 million special dividend);
  • incurred a Universal Service Obligation (USO) cost of $67 million for maintaining the 45c standard letter rate for the sixth consecutive year;
  • served 800,000 customers each day at 4481 postal outlets Australia wide;
  • expanded Australia's largest on-line electronic banking and bill payment network by 93 outlets and increased the representation to 11 financial agencies and 340 agency principals;
  • processed 172 million electronic transactions with bill payment transactions up by 18% and giroPOST transactions up 15%.
Managing Director, Mr Graeme John said Post continued to be one of the best performing enterprises in Australia and had introduced a range of initiatives to help improve customer service over the past 12 months, including a Customer Service Charter detailing the service standards customers can expect from Post.

"With our business being exposed to significant further competition we know that listening to our customers and responding to their needs will be vital to our future success," he said.

"Australia Post remains committed to providing the best possible, lowest cost postal service to all Australians"

"Even though we use leading edge technology throughout our organisation, we continue to be a people business.

"Our people have consistently contributed strongly to all aspects of our business virtually doubling national productivity gains over the last decade.

"Their sense of purpose and commitment are vitally important to maintaining our relevance in the new information age through sustained improvement in our service."

Further information:
Rowland Hill
Ph: (03) 9204 7134

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