Friday, March 27, 2015

Canada Post reports 2014 profit, but decline in Publications Mail volume and revenue

Canada Post reported today that its Publications Mail volume was down 9.5% or 36 million pieces in 2014, with consequent revenue down $19 million or 8.2% to $212 million. The corporation attributed the losses to a decline in mailed subscriptions. 

The revenue decline for mailing magazines and newspapers represented  slightly more than half of the total revenue losses of $37 million the corporation reported in its direct marketing business. Direct mail over all lost 2.2% of its volume and 3% of its revenue compared with 2013. 

Canada Post reported a profit before taxes of $269 million or about 3.3%, compared to a loss of $58 million (0.8%) in 2013.

Another segment important to magazine publishers is business reply mail, where volume was down 5.3% or about 2 million pieces and revenues down 1.9%.

Lettermail volume was down 5.2% or 214 million pieces; lettermail revenues were up 8% or $238 million, largely as the result of the greatly increased, tiered pricing that Canada Post introduced last year. The net positive revenue result was something of a self-fulfilling prophecy as customers mailed fewer more expensive pieces. (Total transaction mail revenues were $3.2 billion, of which domestic lettermail represented $2.9 billion or about 90.6%. The rest represented mail sent out of the country or received from outside.)

Parcels continued to perform well, with volume up 4.6% and parcel revenues up $120 million or 8.6%.

Total Canada Post revenue was up 5.6%  or $331 million between 2013 and 2014, although volume was down over all by 3.4% or 319 billion billion pieces. 

Canada Post said it was determined to continue its Five-Point Action Plan, which involves new, increased pricing, reducing employee benefit costs and concentrating on the parcels business. (click on table to enlarge)

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