Singapore Post (SingPost) has announced lower net profits for the second quarter and half yearended 30 September 2010 but higher underlying profits.
The group’s Q2 net profit declined 2.5% to S$39.5 million. But excluding one-off items such asthe amortisation of deferred gains on intellectual property rights and benefits from the JobsCredit Scheme, the underlying net profit rose 3.2% to S$36.5 million.
SingPost’s revenue improved 5.6% to S$137.6 million in the second quarter, underpinned by growthin its Mail and Logistics segments. Mail revenue increased 5.2% to S$92.2 million, on highercontributions from domestic mail, international mail and hybrid mail. In Logistics, revenueincreased 5.0% to S$47.9 million with better contributions from Quantium Solutions and vPOSTshipping activities. Retail revenue increased marginally to S$17.1 million, with growth infinancial services offsetting the decline in contributions from agency services and retailbusiness.
The group’s Q2 total expenses amounted to S$104.1 million, an increase of 10.3%. Labour andrelated expenses rose on higher contract labour costs and the cessation of benefits from thegovernment’s Jobs Credit Scheme. Volume-related expenses increased as a result of higher trafficexpenses arising from growth in international traffic and conveyance costs.
Ng Hin Lee, Deputy Group Chief Executive Officer of SingPost, said: “We continue to see steadygrowth in our core business of Mail and Logistics in the second quarter while our Retail networkremains a key touchpoint for our customers. We have recently introduced more convenience for ourcustomers with the launch of an air-time transfer service and passport collection service at 20 ofour branches.”
He added: “In Q2, revenue contribution from overseas increased and we are seeing traction in theareas of e-commerce logistics and mailroom management. We will continue to grow revenue in themail-logistics markets where Quantium Solutions has a presence. Concurrently, we are strengtheningour focus on expanding our regional business to further grow our overseas contribution and areactively 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$275.8 million, underpinned by stronger performances by the Mail andLogistics segments. Net profit was level in the first half at S$80.2 million. Excluding one-offitems, the group’s underlying net profit rose 2.1% to S$73.8 million.
