SingPost – BT

SingPost’s Q2 profit slides 2.5% to $39.5m

SINGAPORE Post saw net profit slide 2.5 per cent year on year to $39.5 million for its second quarter ended Sept 30, despite revenue rising 5.6 per cent to $137.6 million as its mail and logistics segments did better.

Excluding one-off items such as the amortisation of deferred gains on intellectual property rights and benefits from the Jobs Credit Scheme, underlying net profit was $36.5 million, up 3.2 per cent from Q2 last year. Earnings per share fell to 2.053 cents, from 2.104 cents previously.

As at Sept 30, SingPost’s total assets were $1.1 billion and its cash and cash equivalents were $335.7 million. Its net gearing ratio was 0.58 times. Total expenses rose 10.3 per cent in Q2 to $104.1 million, while operating profit was 0.1 per cent lower at $51.14 million.

For the first six months, net profit was almost flat at $80.17 million, while revenue rose 9.4 per cent to $275.83 million. Excluding one-off items, SingPost recorded an underlying net profit of $73.8 million, up 2.1 per cent from $72.3 million. ‘The group continues to face the challenges of operating in a changing postal landscape, as well as competitive and cost pressures in the business environment,’ SingPost said yesterday. ‘The group is seeking new growth opportunities to diversify and grow its businesses in Singapore and the Asia-Pacific region.’

SingPost said it is focusing on growing Quantium Solutions’ business beyond cross-border mail and expanding its core competencies into regional markets. The board has declared an interim dividend of 1.25 cents, payable Nov 30. SingPost shares rose two cents to close at $1.18 yesterday.

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