SingPost – BT

SingPost Q1 profit dips 3.5% to $39.24m

Revenue goes up 3% to $142.3m for the quarter

SINGAPORE Post (SingPost) saw net profit dip 3.5 per cent to $39.24 million while revenue climbed 3 per cent to $142.3 million for the first quarter ended June 30, 2011.

Underlying net profit – which excludes one-off items – was flat at $37.37 million. Earnings per share for the quarter were 2.042 cents, compared to 2.111 cents in the corresponding quarter a year ago.

Contributions from its various business segments were mostly higher with revenue from its mail segment increasing 1.6 per cent to $97.24 million.

Logistics revenue, which grew the strongest, was up 10.7 per cent to $51.24 million. Retail revenue increased 1.5 per cent to $16.56 million due to higher retail product contributions, which offset the decline in financial services revenue after the sale of its SpeedCash business in March this year.

Rental and property-related income rose 5.1 per cent to $10.6 million while miscellaneous income increased 7.9 per cent to $4.5 million.

Meanwhile, total expenses for the group were up 6 per cent to $109.3 million. However, net cash from operating activities also came in higher at $37.7 million in Q1 FY11/12, compared to $29.1 million in the corresponding quarter last year.

The board has declared an interim quarterly dividend of 1.25 cents per ordinary share, payable on Aug 31.

‘The group continues to face formidable challenges in the postal industry arising from e-substitution, competition and rising operating costs and is accelerating efforts to diversify and grow its businesses,’ SingPost said. ‘Besides driving organic growth in Singapore and in the regional markets through Quantium Solutions, the group will continue pursuing acquisition opportunities in the Asia-Pacific region.’

Shares in SingPost closed at $1.10 yesterday, unchanged.

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