SingPost Group results for third quarter

Singapore Post Limited (“SingPost”) announced its unaudited results for the third quarter and nine months ended 31 December 2007.

The Group registered a 9.2 pct growth in its revenue for the third quarter, from SGD 111.8 million to SGD 122.0 million, as the three business segments achieved improved
performances.

Mail revenue increased 9.5pct from SGD 86.0 million to SGD94.2 million, on higher mail volumes while Logistics revenue rose 5.3pct from SGD17.0 million to SGD17.9 million, on increased Speedpost traffic and growth in vPOST on-line shopping transactions.

Retail revenue grew 7.9pct from SGD 14.5 million to SGD 15.6 million, as growth in financial services and retail products continue to offset the decline in agency/bill presentment services.

Rental and property related income improved by 21.6 pct from SGD 5.1 million to SGD 6.2 million, as a result of higher rental rates and yield enhancement initiatives at SingPost Centre.

Total expenses rose 10.7 pct from SGD 76.7 million to SGD 84.9 million as a result of increased business activities. Labour and related costs increased 10.6 pct from SGD 27.9 million to SGD 30.9 million on higher wages and variable staff costs. Volume-related costs increased 16.5 pct from SGD 27.6 million to SGD 32.1 million. Finance expenses declined 15.0 pct from SGD 2.7 million to SGD 2.3 million as the Group has fully repaid the term loan obtained in March 2006.

Operating profit for the Group improved by 6.7pct from SGD43.3 million to SGD46.2 million. Mail operating profit posted a 7.5pct increase from SGD34.4 million to SGD37.0 million, while Logistics operating profit improved by 3.3pct from SGD3.0 million to SGD3.1 million.

In Retail, operating profit rose 3.2pct from SGD2.9 million to SGD3.0 million.
For Q3 FY2007/08, the Group recorded a 7.8pct growth in net profit from SGD34.1 million to SGD36.8 million on the back of organic growth and productivity improvements.

1 SGD = 0.705219 USD