The Canada Post segment is reporting a $31-million profit before tax for the second quarter, which ended July 1. We delivered one million or more parcels on a single day 25 times in the first half of the year, putting us on pace to beat last year’s record of 34 days on which we delivered one million or more parcels.
While the growth in parcels is encouraging, structural challenges such as Lettermail decline and pension funding obligations remain significant long-term threats to our financial self-sustainability.
Key results for the Canada Post segment in Q2 compared to Q2 2016
Parcels revenue increased by $83 million or 20.5 per cent.
Volumes increased by 10 million pieces or 23.0 per cent.
Transaction Mail revenue decreased by $63 million or 8.0 per cent.
Volumes decreased by 95 million pieces or 10.9 per cent. The erosion was similar to previous periods, once you exclude the large census mailings in Q2 2016 from the comparison.
Lettermail decline, like the pension funding obligation, is a structural challenge that remains a significant long-term threat to our financial self-sustainability.
Revenue decreased by $11 million or 3.8 per cent, largely reflecting declines in Personalized Mail and Publications Mail volumes and revenue.
Overall volumes increased by 23 million pieces or 1.8 per cent, because Neighbourhood Mail volumes increased by 54 million pieces or 5.7 per cent. Neighbourhood Mail revenue increased by $5 million or 5.2 per cent.