SingPost – BT

SingPost Q2 net profit falls 22.5% to $30.6m

SINGAPORE Post (SingPost) registered a 22.5 per cent year-on- year fall in net profit to $30.6 million for the second quarter ended Sept 30, despite revenue inching up 2.4 per cent to $140.9 million.

The three months saw total expenses rising 7.4 per cent to $111.8 million.

‘Net profit for the group was impacted by the higher cost of business including increased manpower costs due to the tight labour market, as well as investments to strengthen information technology, operations and capabilities to drive new business,’ said group CEO Wolfgang Baier.

Rental and property-related income increased 6.3 per cent to $11 million with higher rental income from Singapore Post Centre. But the group recorded a $1.7 million miscellaneous loss, against a miscellaneous income of $4.3 million a year earlier. This was due mainly to non-cash mark-to-market losses from equity-linked notes as a result of the recent downturn in the stock market, said SingPost.

The group’s Q2 earnings per share (EPS) fell to 1.61 cents from 2.053 cents a year ago.

Mail revenue increased 1.7 per cent to $93.8 million during its second quarter, due to higher contributions from domestic and international mail.

Revenue for logistics increased 10.8 per cent to $53.1 million, driven by growth in Quantium Solution’s regional e-fulfilment activities, transhipment and vPOST shipping activities.

Retail revenue was constant at $17 million, as higher contributions from retail products and online store Clout Shoppe offset the decline in agency services and financial services following the sale of the SpeedCash business in March.

Net cash from operating activities was slightly lower at $42.6 million, compared to $46.3 million in the second quarter of last year.

SingPost maintained its quarterly dividend at 1.25 cents per share.

For the first six months, net profit declined 12.9 per cent year-on-year to $69.9 million despite a 2.7 per cent rise in revenue to $283.2 million while its total expenses grew 6.7 per cent to $221.1 million year-on-year. Half-year EPS fell to 3.654 cents from 4.164 cents a year earlier.

SingPost shares closed trading yesterday at $1.05, up 1.5 cents.

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