SingPost – BT
SingPost Q1 profit inches up 3.2% to $40.7m
SINGPOST’S net profit grew 3.2 per cent to $40.7 million for the first quarter ended June 30.
Earnings per share were 2.11 cents, up from 2.045 cents a year ago. Revenue hit $138.2 million, a 13.5 per cent increase from the year before.
Expenses increased 19 per cent to $103.1 million, due in part to the consolidation of SingPost’s regional outfit Quantium Solutions, higher labour costs and reduced benefits from the government’s Jobs Credit Scheme.
Revenue for the mail and logistics segments showed better performances.
Logistics revenue surged 34.4 per cent year on year to $46.3 million, primarily due to inclusion of Quantium Solutions for the full quarter, versus two months in Q1 2009.
Mail revenue rose 11.4 per cent to $95.7 million, on higher domestic and international traffic.
SingPost deputy CEO Ng Hin Lee said: ‘We will continue to push for regional growth through Quantium Solutions, especially in the area of e-commerce logistics, against the backdrop of rapid Internet growth in north Asia. Concurrently, we are expanding our in-country distribution networks in the region, especially in the India market.’
SingPost has declared an interim quarterly dividend of 1.25 cents per ordinary share, to be paid on Aug 31.
While SingPost is constantly pressured by e-substitution and other competitors, Mr Ng is optimistic about future earnings amid the recovering economy.
SingPost aims to remain globally relevant, he said. ‘We will focus our efforts on diversification and growth. Our objective is to build a more balanced revenue and earnings portfolio by growing non-mail contributions and driving regional growth.’
SingPost shares closed flat at $1.13 yesterday, after the release of its Q1 results.