SingPost – BT

SingPost Q3 net dips 5.2%; mail revenue falls 3.4%

SINGAPORE Post’s net profit slipped 5.2 per cent year on year, from $43.8 million to $41.6 million, for the third quarter ended Dec 31, 2011.

SingPost said that growth in its logistics (5.2 per cent) and retail (5.1 per cent) segments offset the decline in mail revenue, which fell by 3.4 per cent to $98 million, due to lower volumes recorded in domestic and international mail.

The higher revenue in logistics was attributable to growth in Speedpost and e-fulfilment activities. Retail revenue improved as increased contributions from retail products and online store Clout Shoppe offset the drop in agency services and financial services.

Rental and property-related income increased 1.1 per cent from $10.6 million to $10.7 million with higher rental income from Singapore Post Centre.

Total expenses for the quarter rose 3.6 per cent to $114.5 million, with approximately $2.7 million going to the ‘upgrading of talent, IT systems, and operations to drive future revenues’.

Earnings per share for Q3 2011 were 2.2 cents, down from 2.281 cents a year before.

For the nine months ended Dec 31, 2011, net profit dropped 10.1 per cent to $111.4 million, while revenue rose 1.9 per cent to $432.6 million.

SingPost group chief executive officer Wolfgang Baier said: ‘Globally, the postal industry has been struggling in the face of industry-specific challenges and now, it has become even more challenging with the weakening economy.’

‘What’s in our favour is our strong foundation which puts us in a good position to invest for growth,’ Dr Baier added.

SingPost said it is pursuing opportunities in e-commerce fulfilment, while expanding its vPOST reach in the region.

Dr Baier said: ‘We are mindful that, even as we continue to invest for growth, cost management will remain a key focus.’

The company has declared an interim quarterly dividend of 1.25 cents per ordinary share, to be paid on Feb 29.

SingPost fell half a cent to close trading at 98 cents per share yesterday.

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