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Canada Post lost $378M between April and June in part because of COVID-19

 

Canada Post lost $378M between April and June in part because of COVID-19-Milenio Stadium-Canada
A surge in package delivery from online shopping wasnt enough to offset declining revenue from conventional mail and direct marketing. (Evan Mitsui/CBC)

 

Canada Post is reporting a second quarter pre-tax loss of $378 million, a figure the service says was largely driven by the COVID-19 pandemic.

The Crown corporation says it saw an unprecedented growth in parcel volume and revenue from Canadians shopping online while staying at home, delivering as much early in the second quarter as the postal service does during the peak Christmas season.

But mail and direct marketing revenues dropped faster with businesses mailing and advertising less than they did pre-pandemic.

Traditional mail revenue dropped by 15.4 per cent compared to the same period in 2019, while year-over-year direct marketing revenue fell by 46.4 per cent in the second quarter.

Canada Post estimates COVID-19 led to a revenue shortfall of $46 million, and increased costs by $118 million.

The postal service has now recorded a before-tax loss of $444 million through the first half of 2020, compared to a loss of $27 million during the same period last year.

CBC

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CBC

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