Canada Post attributes Q1 profits to tiered mail pricing and rising parcel volumes

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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 

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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