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)
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)
Labels: Canada Post, mailing rates
posted by D. B. Scott at
12:14 pm
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