Canada Post revenues drop $27M in first quarter

Canada Post mail box in Vancouver, B.C. on Sunday February 23, 2014. (Carmine Marinelli/QMI Agency)

Canada Post mail box in Vancouver, B.C. on Sunday February 23, 2014. (Carmine Marinelli/QMI Agency)

QMI Agency

, Last Updated: 1:55 PM ET

Canada Post lost $27 million before taxes in the first quarter of this year largely because of a big drop in letters and bills being sent through the mail.

The company said revenue for transaction mail — mostly letters, bills and statements — decreased by $50 million.

But it hopes rising the price of stamps as of March 31 will help recover some of those losses in the second quarter.

Canada Post said five initiatives — introducing community mailbox delivery to 11 communities this fall, hiking the price of stamps, opening more franchise postal outlets, adjusting hours in low-traffic offices and streamlining its operation network — will help the company save money.

The Canada Post Group of Companies — which includes Canada Post, Purolator, SCI Group and Innovapost — reported a loss of $37 million.

Earlier this month, Canada Post reported it lost $269 million in 2013 due largely to the decline in mail volume.


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