Canada Post reported a profit before tax of C$24m (US$19.3m) for the first quarter of 2015, compared to a loss of C$27m (US$21.7m) for the first quarter of 2014. The post has said that the results were mainly due to continued growth in the parcels business and to tiered pricing for transaction mail.
In Q1 2015, volumes of domestic lettermail fell by 8.4%, or 41 million pieces, compared to the same period a year ago. Since its peak, domestic lettermail volumes have fallen every year in 2014, Canadians sent 1.4 billion fewer pieces of mail than in 2006.
The decline in lettermail volumes was offset by higher revenue from the tiered pricing structure that took effect at the start of the second quarter of 2014. Transaction mail revenue grew by C$112m (US$90m), or 9.1%, to C$889m (US$714m) in the first quarter of 2015, while volumes fell 8% from the same period in 2014. The pricing structure has helped to offset declining transaction mail revenues, contributing to the company’s financial self-sustainability.
May 27, 2015
