Australia Post has called for an increase in the price of postage stamps after its letter profits fell at the fastest rate in its 210-year history.
Overall profit dropped by 45 per cent from the previous year to $118 million in the second half of 2018.
Australia Post would soon need approval from the federal government to increase stamp prices, managing director Christine Holgate said.
Australia Post must increase the price of postage stamps as letter profits fell at the fastest rate in its 210-year history. Letter revenue plummeted by ten per cent, a loss of $102 million in profit.
Ms Holgate said prices would increase ‘in line with inflation’, the Herald Sun reports.
Prices increased from 70c to $1 for standard stamps in January 2016.
Australia Post delivered a record 40 million parcels during the holiday shopping season in December last year.
Parcel revenue leaped by nine per cent, adding $25 million to the bottom line.
Letter revenue plummeted by ten per cent, a loss of $102 million in profit.
‘We are now working in an environment with considerably less profit from letters,’ said Ms Holgate.
Posties were forced to carry 40 per cent of parcels for Australia Post to make a flat revenue of $3.6 billion in the first half of 2018.