SingPost – BT

SingPost profit slips 9.6% in Q4

SINGAPORE Post (SingPost) saw net profit fall 9.6 per cent year on year to $36.97 million for the fourth quarter ended March 31, 2011, despite a 5.7 per cent rise in revenue to $141.53 million.

Excluding one-off items such as the amortisation of deferred gain on intellectual property rights, benefits from the Jobs Credit scheme and a reversal of impairment charge, underlying net profit was $34.8 million, down 4.6 per cent. Earnings per share for the quarter were 1.924 cents, versus 2.123 cents for the corresponding quarter last year.

Fourth-quarter revenue was bolstered by improved performances from both its mail and logistics business segments.

For the full year, net profit was $160.96 million, down 2.4 per cent, while revenue was up 7.7 per cent to $565.85 million.

SingPost is proposing a final dividend of 2.5 cents, subject to approval at an upcoming annual general meeting, bringing the total dividends for the financial year to 6.25 cents per share.

Ng Hin Lee, chief executive officer (postal and corporate services), said: ‘E-substitution and declining mail volumes continue to affect postal companies. One of our current priorities is to transform our mail business to meet the evolving needs of the market. In the second half of this year, we will roll out a digital mailbox solution to offer options of physical and digital mail.’

‘Over the long term, as letter-mail demand changes, the platform will enable us to retain our relationship with our corporate and walk-in customers as we migrate them to new products and services, which we term post letter-mail products,’ he added.

SingPost, which during the year acquired a 27 per cent stake in Malaysia’s GD Express Carrier, is also seeking acquisition opportunities – especially in the area of logistics – both in Singapore and the Asia Pacific.

Shares in SingPost closed at $1.16 yesterday, up one cent.

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