SingPost grows at double – digit rates

Singapore Post (SingPost) grew at double-digit rates in the half-year ending on September 30,2005, its unaudited results for the second quarter and first half showed. The listed company said

Building on the growth momentum in Q1 FY2005/06, SingPost said it recorded a strong performancein the second quarter, with operating revenue increasing 12.6 per cent from S$91.5 million to S$103million as all business segments achieved double-digit revenue growth. As a result of the strongbusiness performance, the Group’s underlying net profit grew nine per cent to S$28.1 million,excluding exceptional items.

Mail revenue for the quarter grew 10.1 per cent to S$78.5 million on higher contributions by thedomestic, international and hybrid mail business lines through various initiatives such as directmail. The Logistics business returned a good showing, with revenue rising 20.2 per cent to S$15.1million. This was mainly due to higher Speedpost traffic and increased contributions from newcustomers. Retail revenue rose strongly by 18.5 per cent to S$12.6 million, on the back of growingcontributions from financial services, product launches/promotions such as the Harry Potter booklaunch and mail orders through its internet portal, vPost.

SingPost’s CEO, Lau Boon Tuan, said: “We have continued to deliver good performance for thesecond quarter of FY2005/06, achieving double-digit revenue growth in all core businesses. Buildingon our strengths, we will focus on our core competencies and, through rejuvenation and reinventionof our business, drive revenue and generate growth with minimal investments. At the same time, wewill keep a tight rein on costs and focus on processes to reap greater efficiencies.”

Under its growth strategy, SingPost plans to offer value-added products and services through itsretail network, including financial services. Lau added: “We are transforming SingPost andpositioning it as more than ’just mail’. With our extensive distribution network and deliveryexpertise, we are well placed to pursue strategic initiatives that will lead to long-term growth tomaximise shareholder value.”