Published January 31, 2009

SingPost profit dips 0.5% to $36.6m in Q3

Revenue up a marginal 1.6% amid slowdown in business activities

By NISHA RAMCHANDANI

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(Singapore)

SINGAPORE Post (SingPost) registered a net profit of $36.58 million, down 0.5 per cent year-on-year, for the third quarter ended Dec 31, 2008.

MR TAN To weather the downturn, SingPost has given greater priority to management of costs and capacity planning

Revenue rose marginally by 1.6 per cent to $123.95 million amid a slowdown in economic and business activities. However, total expenses were also higher, growing 5.2 per cent to $89.3 million. Selling expenses were up by 43.5 per cent as the group made higher provisions for doubtful debts.

Higher mail volumes and increased hybrid mail contributions saw revenue from mail come in 1.5 per cent higher at $95.5 million.

Related links: Click here for SingPost's news release Financial statements

Revenue from logistics improved 2.1 per cent to $18.5 million as higher warehousing, fulfilment and distribution contributions and higher shipping contributions from vPOST were offset by the decline in Speedpost revenue.

Rental and property-related income continued to improve on the back of higher rental income from Singapore Post Centre as well as additional rental income from the leasing of space at re-purposed post office buildings, the group said.

During the quarter, SingPost launched A.M. Mail, a delivery service aimed at SMEs that bridges the gap between courier service and regular mail service.

Earnings per share (EPS) for the quarter were 1.899 cents, down from 1.914 cents in the previous corresponding quarter.

For the nine months ended Dec 31, the group's net profit dipped by 1.2 per cent to $113.47 million. On the back of a stronger performance in the first two quarters, group revenue was up 3.4 per cent for the nine months to $365.5 million.

'We expect the deepening global recession and grim business climate to continue to have an impact on our performance. To weather this downturn, we have given greater focus and priority to the management of costs and capacity planning,' said chief executive Wilson Tan, adding that SingPost is actively seeking growth opportunities to expand.

The group also expects margins to come under pressure from the liberalisation of the basic mail services market and entry of new players.

SingPost has declared a dividend of 1.25 cents per share payable on Feb 27. The share price ended 1.3 per cent lower at 77 cents yesterday.