Business

SingPost Q1 net profit down by 13.6 per cent

Net profit at Singapore Post (SingPost) fell 13.6 per cent to $31 million for its first quarter, the firm reported yesterday.

This was despite a 6.2 per cent year-on-year rise in revenue for the three months ended June 30.

Revenue increased to $354.1 million, thanks to expansion in its postal and logistics businesses.

But underlying net profit fell 24.7 per cent, mainly because of lower domestic mail volumes, costs from planned investments, increased competition in the logistics segment, and associates that were investing for growth.

An interim dividend of 0.5 cent per share was declared, down from 1.5 cents a year ago.

SingPost said strong international mail growth drove postal revenue up by 9.3 per cent, even as domestic mail revenue declined with more organisations moving to electronic statements.

Cross-border e-commerce-related deliveries increased, especially with rising volumes from the Alibaba Group. Yet, even though profits from such trans-shipment activities increased, they were insufficient to offset the decline in domestic mail earnings, which led to postal operating profit declining 13.7 per cent. -THE STRAITS TIMES

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