SingPost – BT

SingPost Q2 earnings up, helped by one-off items

Revenue up 7.9%, boosted by consolidation of Quantium turnover

SINGAPORE Post (SingPost) chalked up a net profit of $40.5 million for the second quarter ended Sept 30, up 8.3 per cent from the previous corresponding quarter.

The net earnings were higher as a 98.7 per cent fall in share of profit of associated companies and joint ventures to $40,000 from $2.97 million was more than compensated by a $2.93 million amortisation of deferred gain on intellectual property rights and a $2.13 million benefit under the government’s Jobs Credit Scheme. Without the amortisation of deferred gain (which relates to the collaboration with US-based Postea Inc), the government relief scheme and other one-off items, the group’s underlying profit fell 8.6 per cent to $35.4 million.

The three months also saw a boost from a 23.1 per cent rise in rental and property-related income to $10.1 million due to higher rental income from Singapore Post Centre and the leasing of space at re-purposed post office buildings.

Group revenue – which was strengthened by the consolidation of revenue from Quantium Solutions Group (previously known as G3 Worldwide Aspac group of companies) – increased 7.9 per cent to $130.3 million.

Quantium became wholly owned by SingPost in May this year after SingPost acquired the remaining 50 per cent stake in G3 Worldwide Aspac for $15 million.

Earnings per share (EPS) for the quarter came in at 2.104 cents per share, up from 1.943 cents. An interim dividend of 1.25 cents per share will be paid on Nov 30.

Mail revenue decreased 4.4 per cent to $87.6 million, dragged down by lower international mail contributions. Logistics revenue increased 142.6 per cent to $45.6 million, on the back of contributions from Quantium Solutions, which helped to offset lower revenue from Speedpost.

For the fiscal first half year, net profit attributable to equity-holders grew 4 per cent to $79.9 million. Excluding one-off items, underlying net profit declined 6.9 per cent to $72.3 million. Meanwhile, revenue rose 4.3 per cent to $252 million.

Group chief executive officer Wilson Tan said: ‘Although the global economy is showing signs of recovery, the postal industry typically experiences a longer recovery runway. We continue to face unrelenting pressures from the operating environment.’

However, Mr Tan also added that the group will continue to keep an eye on costs as well as pursue new growth opportunities.

SingPost closed at 93.5 cents yesterday, up by one cent.

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