​​​​While parcel volume and revenue continues to grow, the Australian community’s use of letters is still declining, with letter volumes falling 9.0 per cent this year.

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​We have not turned our back on letters though, and we will continue to fight to keep this part of our business alive. We introduced our tracked letter product this year and encouraged businesses to use letters as a means of marketing communication that achieves cut through. As a result, we saw some positive movements in segments of the letters service this year with revenue from unaddressed mail up 3.4 per cent. This growth was largely due to the postage of election materials and postal votes for the Federal, NSW and Victorian elections.

However, the combination of continuing volume decline, the fixed cost nature of our letters business and the addition of around 200,000 new addresses to our delivery network each year, will continue to be a financial challenge that is difficult to manage.