Pos Malaysia Q1 net profit rises 91.5percent

Pos Malaysia & Services Holdings Bhd surprised with a surge in pre-tax profit to RM38.1mil for the first quarter ended March 31 from RM18.9mil in the equivalent period of 2003. Net profit rose 91.5percent to RM25.8mil in the first quarter, compared with RM13.5mil in the corresponding quarter last year, while revenue increased 6.6percent to RM175.3mil. Before this, an analyst said, the company was viewed as being in a slow growth or no-growth business as e-mail had displaced much of the letters and cards that were sent through the postal service in earlier years. There was a wide expansion in profit margin, he noted, as the profit increase far exceeded the rise in turnover. Pos Malaysia attributed the higher profit in its latest quarter to improved revenue from mail amounting to RM8.8mil and reversal of provision for diminution in value of investments. It also reported a fall in associated companies’ profits of RM6.1mil, but noted that revenue from agency fees was higher at RM3.7mil. The company’s earnings per share grew to 6.4 sen in the first quarter, compared with 3.5 sen in the year-ago period. The group said directors were positive about its performance for the rest of the year as its postal and related services were expected to improve in line with current economic conditions.