SingPost’s net profit falls in Q2
SingPost has recorded a net profit of S$39.5m (USD$30.44m) for Q2 – a fall of 2.5% year-on-year. However, excluding one-off items such as the amortisation of deferred gains on intellectual property rights and benefits from the Jobs Credit Scheme, the underlying net profit was S$36.5m, an increase of 3.2% from S$35.4m in the same quarter last year.
Group revenue improved 5.6% to S$137.6m in Q2 FY2010/11, underpinned by growth in its Mail and Logistics segments.
Mail revenue increased 5.2% to S$92.2m, on higher contributions from domestic mail, international mail and hybrid mail.
In Logistics, revenue increased 5% to S$47.9m with better contributions from Quantium Solutions and vPOST shipping activities.
Retail revenue increased marginally to S$17.1m, with growth in financial services offsetting the decline in contributions from agency services and retail business.
Rental and property-related income amounted to S$10.4m, an increase of 2.9%, due to higher rental income from Singapore Post Centre.
The Group’s total expenses amounted to S$104.1m, an increase of 10.3%. Labour and related expenses rose on higher contract labour costs and the cessation of benefits from the government’s Jobs Credit Scheme.
Volume-related expenses increased as a result of higher traffic expenses arising from growth in international traffic and conveyance costs.
Administrative and other expenses rose due to higher property tax and other administrative expenses. Finance expenses included additional interest expenses from the S$200m Fixed Rate Notes issued on 30 March 2010.
Ng Hin Lee, deputy group chief executive officer of SingPost: “We continue to see steady growth in our core business of Mail and Logistics in the second quarter while our retail network remains a key touch point for our customers. We have recently introduced more convenience for our customers with the launch of an air-time transfer service and passport collection service at 20 of our branches.”
Ng explained that SingPost is positioned to grow its overseas contribution. He added: “In Q2, revenue contribution from overseas increased and we are seeing traction in the areas of e-commerce logistics and mailroom management. We will continue to grow revenue in the mail-logistics markets where Quantium Solutions has a presence.
“Concurrently, we are strengthening our focus on expanding our regional business to further grow our overseas contribution and are actively seeking opportunities to diversify and grow.”
On the back of an improved economy in the first half of FY2010/11, the Group posted a 9.4% increase in revenue to S$275.8m, underpinned by stronger performances by the Mail and Logistics segments.
The Group’s total expenses increased 14.4% to S$207.2m in the first half of FY2010/11.
Net profit was level in the first half at S$80.2m. Excluding one-off items such as the amortisation of deferred gains on intellectual property rights and benefits from the Jobs Credit Scheme, the Group recorded underlying net profit of S$73.8m, a growth of 2.1% from S$72.3m.
1S$ = US$ 0.77 / EUR 0.55 / GBP 0.48 – xe.com, 29/10/10
