Despite posting a loss in what is traditionally the slowest period of the year, we expect to end 2017 with a profit before tax, largely due to growth in our Parcels business.
For the first three quarters of 2017, Canada Post reported a profit before tax of $13 million. In the fourth quarter, we expect a record online holiday shopping season. We delivered one million or more parcels on a single day a record 38 times in the first three quarters of 2017. That’s more than the record of 34 days in all of 2016.
The Canada Post segment’s $62-million loss before tax in the third quarter, which ended September 30, 2017, compares to a loss before tax of $60 million for the third quarter of 2016.
Key results for the Canada Post segment in Q3 compared to Q3 2016
Parcels revenue increased by $129 million or 38.9 per cent.
Volumes increased by 16 million pieces or 43.5 per cent.
Over the first three quarters of 2017, Parcels revenue increased $257 million or 22.5 per cent and volumes increased by 32 million pieces or 25.3 per cent compared to the first three quarters of 2016.
Transaction Mail volumes have been eroding for 11 straight years.
Volumes decreased by 8 million pieces, which is relatively flat compared to the same period in 2016, which had one extra business day. Revenue increased by $3 million or 2.2 per cent.
The increase in revenue in third quarter of 2017 is compared to Q3 2016, when there was lower revenue and fewer mailings due to labour uncertainty. Excluding this impact, Transaction Mail revenue would have declined in the third quarter of 2017.
Direct Marketing revenue increased by $15 million or 7.9 per cent.
Volumes increased by 151 million pieces or 17.1 per cent.
Excluding the negative impact of the labour uncertainty in Q3 2016, Direct Marketing revenue would have decreased in the third quarter of 2017.