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Canada Post letter carrier Debbie Gibson puts mail in new Canada Post super boxs' in Calgary, Alberta, October 20, 2014.

Canada Post Group returned to profitability last year as the national postal service both grew revenue and reduced expenses.

The group that includes Canada Post, Purolator and other businesses had a $198-million profit, compared with a $29-million loss in 2013.

The group's total revenue was $7.98-billion, up $419-million or 5.5 per cent from $7.56-billion in 2013 , while the logistics segment had a $10-million profit, all of which were partially offset by a $13-million loss in other aspects of the business.

The Canada Post postal service accounted for 77.5 per cent of the group's total revenue or $6.21-billion last year – up $331-million or 5.6 per cent from $5.88-billion in 2013. The next-largest revenue source was the Purolator courier service, which generated $1.68-billion in 2014, up $64-million.

The government-owned corporation said the main Canada Post business had a $148-million profit in 2014, compared with a $75-million loss in 2013. Purolator had an $53-million profit, up from $48-million in 2013.

Transaction mail – letters, bills and the like – generated $3.2-billion of revenue for the postal service last year. Canada Post said it had $238-million more revenue from transaction mail last year, mostly because of new pricing that took effect last March.

Canada Post parcel delivery generated $1.5-billion of revenue in 2014, up $120-million from 2013, due to surging demand from businesses filling orders placed by online customers.

Direct marketing customers who deliver advertising and publications through Canada Post generated $1.2-billion of revenue, down $37-million from 2013, due to electronic substitution, bill consolidation and competition, the company said.

On the cost side, Canada Post said employee benefits at the postal service fell to $4.14-billion from $4.39-billion in 2013. Other operating costs increased to $1.6-billion from $1.51-billion.

During 2014, Canada Post converted 100,000 addresses that had door-to-door delivery to community mail boxes. In 2015, it plans to convert about 900,000 addresses.

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