Australia Post Annual Report 2008–09

Core businesses Agency services & retail merchandise
Banking services
Personal banking customers of numerous
credit unions, building societies and banks
can make transactions, such as deposits and
withdrawals, at their local retail outlet via
the Bank@Post agency banking service.
With 3,297 outlets offering Bank@Post,
more than half of which are in rural and remote
locations, over 70 financial institutions choose
to expand their network through Australia Post.
In line with trends in recent years, the
volume of personal banking transactions
conducted in our outlets declined slightly
due to the growing popularity of online
banking, EFTPOS cash-out and ATMs. More
than 2,500 outlets offer business banking
services on behalf of 10 financial institutions,
including the Commonwealth Bank and
National Australia Bank.
In 2008–09, we processed 25 million banking
transactions, which is 4 per cent fewer
than last year.
Money transfer services
Our domestic Money Order revenue remained
steady, despite a soft economy and the trend
towards other payment methods, such as
gift cards. As a first step in making domestic
Money Orders more relevant to consumers,
the limit was raised from $1,000 to $5,000.
International money transfer services
continue to grow dramatically, comprising
4 per cent of our agency services business,
with transactions up 17 per cent this year.
We remain the largest distributor of Western
Union money transfer services in Australia, while
our Travel Money products, such as the Travelex
Cash Passport, continue to perform well.
Australia Post also disperses cash on behalf
of various government agencies, a significantly
cheaper and more convenient alternative to
other options. In 2008–09, these included
Victoria’s School Start Bonus and the Western
Australian Country Age Pension Fuel Card.
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Australia Post Annual Report 2008–09 | Report of operations
Retail merchandise
There was solid revenue growth of
3.2 per cent in 2008–09 for retail
merchandise. This result was significant
considering the tough economic conditions,
which prompted a reduction in discretionary
spending. The merchandise business is
particularly exposed to spending patterns
(with the exception of packaging). Retail
merchandise products (including mobile
phones, gifts, greeting cards and office
products) are primarily purchased in our
outlets based on impulse or convenience.
A number of business initiatives contributed
to this positive result, including:
• book and audiovisual products, which
achieved significant growth during the year
• a successful 2008 Christmas campaign,
assisted by the use of our Sai Cheng
logistics capability in China to package and
distribute products direct to our outlets
• the continuing demand for gift
cards, including the launch of a
business-to-business gift card service
• the successful introduction of wireless
broadband products, with a corresponding
increase in demand for recharge products
• the refinement of promotional planning
and execution, allowing delivery of our
original planned promotions calendar
at a lower cost.
Our philatelic program
The Philatelic Group produces postage
stamps and various other products for stamp
enthusiasts and collectors of memorabilia.
In 2008–09, major events such as the Beijing
Olympics and World Youth Day in Australia
helped to deliver one of the most successful
years for our philatelic business since 2000.
The strength of our traditional stamp program
has in recent times been augmented by
continued growth in licensed collectibles
which attract customers outside our traditional
markets. These include high-quality limited
edition products which appear in the yearly
“Impressions” catalogue. These products also
became available to purchase online for the
first time when the stamp shop website was
upgraded in October 2008.
This financial year’s stamp highlights included:
• Beijing Olympics commemorative issues
in August 2008. In addition to those
representing Australia’s participation
in Olympic basketball, cycling and
gymnastics, stamps were also issued
to celebrate our gold medal winners.
• Favourite Australian Films, issued in
November 2008. In partnership with
the Australian Film Institute, stamps
representing the top five films selected
via our first online public poll were issued
amid considerable media interest.
• Ten stamps were released in the Australia
Post – 200 Years issue in March 2009.
In addition, following a national poll
conducted in partnership with News Limited
newspapers, the five most popular stamps
ever were released in the Australia’s
Favourite Stamps issue.
See the inside back cover for a selection
of the year’s stamp issues.
The future
During the coming year, the challenges of a
weaker economy are expected to continue.
However, over the past two centuries our
network has continuously expanded and
community trust in our people has remained
steadfast. This is an ideal base from which
to further develop products and services
that meet the needs of our customers
into the future.
We will continue to develop new products,
services and multi-channel offerings. In
particular, identity services will be extended
into a range of trust-based services, facilitated
by increased electronic functionality, and our
website will be significantly enhanced. We will
continue to increase revenue while focusing on
greater efficiencies in order to reduce costs.