Singapore Post today announced strong growth in profits for the third quarter and the ninemonths ending December 31, 2005. Highlights included a 17 per cent rise in its Q3 net profit with
strong operating profits for its mail, logistics and retail businesses.SingPost said its Q3 operating revenue grew by 7.4 per cent to S$108 million (54.4 millioneuros), with all business segments performing well and continuing to show improvements. Mailrevenue for the quarter grew 3.4 per cent to S$81.8 million, underpinned by the strong performancein international and hybrid mail. Revenue from the logistics business rose 15.3 per cent to S$16million, mainly due to higher Speedpost traffic, warehousing, fulfillment and distributionrevenues. Retail revenue increased by 10.8 per cent to S$13.2 million, on the back of growingcontributions from financial services and higher vPOST mail-order transactions, offsetting thedecline in agency services.
All three business segments did well, achieving double-digit operating profit growth in thethird quarter. The mail business recorded a strong 12.3% growth in operating profit while logisticsposted a 49.8% growth. The retail business returned a strong showing with 27.4% growth. As a resultof the good business performance and cost control, SingPost increased the Q3 net profit by 17.4 percent to S$32.8 million.
Over the first nine months, SingPost increased revenues by 9.4 per cent to S$307.8 million,improved the operating profit by 11.9 per cent to S$113.6 million and raised net profit by 10.9 percent to S$92.8 million.
SingPost’s Group CEO Lau Boon Tuan said: “Performance for the third quarter was good, with allthe business segments posting double-digit growth in operating profit. Our strategy of leveragingon our wide distribution network is bearing fruit, even as we roll out more consumer-driveninitiatives. We will continue to enhance the suite of products and services offered at the postoffices and vPOST.”
Several of these consumer-driven initiatives that were launched in the third quarter includeSpeedpost Express, a new premium international courier service which taps on the worldwide networkof DHL Express, and online shopping services.
Lau added: “Innovation is still our key driver for growth as we continue to transform ourbusiness through reinvention and rejuvenation. We will also actively pursue and implementinitiatives to grow our core business in Mail and Logistics, particularly in direct mail,international mail and Speedpost.”
