SINGAPORE (Feb 1): Singapore Post (SingPost) has announced earnings of $50.2 million for 3Q19, growing 15.6% from $43.4 million a year ago, largely due to higher revenue as well as a $28.2 million exceptional gain on the group’s dilution of interest in its former associated company, 4PX.
Underlying net profit, however, was down 7.5% at $32.9 million from $35.6 million a year ago, due to higher losses registered from the group’s US businesses.
Revenue for the latest quarter grew 7.6% to $441.4 million on stronger contributions across all business segments.
Within the Post & Parcel Segment, revenue rose 9% due to higher domestic mail revenue, as increased e-commerce deliveries offset the decline in traditional mails. Revenue rose a further 16.3% for international mail due to cross-border volumes from Alibaba Group through 4PX.
Revenue rose 8.7% in the eCommerce segment as volumes rose over the peak e-commerce season in the US.
Logistics, too, saw a 3.6% increase in revenue on the back of improved freight forwarding business under Famous Holdings, which offset a marginal decline in revenue at Quantium Solutions with the exit of unprofitable customers.
Under the Property segment, revenue rose 4% on-year due to higher committed mall occupancy of 98.5% as at end-2018, compared to 85.9% a year ago.
In line with the revenue increase, operating expenses rose 8.8% over the quarter mainly due to volume-related expenses.
Commenting on the latest set of results, Paul Coutts, group CEO of SingPost, says 3Q has been an exceptional one with strong performance across the group – save for the US, where it remains challenging.
“We continue to advance our integration and cost transformation programmes to enhance operational synergies and improve profitability amid intense competition in eCommerce logistics,” says Coutts.
An interim dividend of 0.5 cent per share has been declared, unchanged from a year ago.
As at 10:39am, shares in SingPost are trading 1.52% lower at 97 cents.
