SingPost – BT

SingPost Q1 gain rises 24% to $38m

Expansion in the region through tie-ups in Thailand, HK paying off

BOLSTERED by all round business growth in mail, logistics and retail, Singapore Post delivered a more than one-fifth jump in quarterly earnings. For the first quarter ended June 30, net profit for the postal operator came to $38.4 million, up 24 per cent from the previous corresponding period.

Higher contributions from domestic mail, international mail and hybrid mail saw mail revenue increase 11 per cent to $91.4 million, while logistics revenue was up 4 per cent at $16.1 million on increased Speedpost traffic and vPOST on-line shopping transactions.

SingPost said that it would continue to work on rolling the vPOST service out into the region with a recent tie-up with PayPal in Australia to reach out to their large customer base.

Retail revenue rose 11 per cent to $14.1 million, underpinned by growth in financial services offered at its branches. Retail includes agency and bill presentment services such as bill payments and financial services like remittances.

The group said that it would continue to capitalise on its retail and distribution network to offer a wider range of services, including sale of the latest Harry Potter book.

Rental and property-related income saw an 11 per cent increase to $5.3 million from higher rental rates and yield enhancement initiatives at SingPost Centre.

All in, revenue grew 10 per cent to $115.5 million. Earnings per share rose to 1.998 cents from 1.617 cents. Total expenses were up 8 per cent to $79.5 million, as a result of higher labour and volume-related costs as well as selling expenses, due to increased business activities.

SingPost group CEO Lau Boon Tuan said: ‘In the first quarter, the group continued to pursue various initiatives to maintain our growth momentum.’

These initiatives included enlarging its presence in the region, such as in the area of hybrid mail services. In May, it said that it signed a cooperation agreement with Hongkong Post for the hybrid mail business in Hong Kong followed by the signing of a joint venture agreement with the Thai British Security Printing Public Co Ltd to provide hybrid mail services in Thailand.

The basic domestic and international mail services were opened up to competition on April, ending SingPost’s 15-year monopoly. Changes made to the Postal Services Act had been passed by Parliament earlier this month.

SingPost shares rose two cents or 1.6 per cent yesterday, ending at $1.24.

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