Singapore Post revenues increase by 1% for Q1 2019

SingPost

Singapore Post (SingPost) has announced its results for the quarter ending June 30, 2019. Revenue for Q1 rose 1% to S$*376.4m, driven by higher International Post and Parcel revenue arising from cross-border e-commerce deliveries.

Profit on operating activities was down by 9.9% to S$35.3m from S$39.1m in Q1 2018. This is largely due to lower contribution from Domestic Post and Parcel.

Net profit was up 37.2% to S$25.7m from S$18.7m in Q1 2018, due to improved results from associated companies and joint ventures, as well as the absence of exceptional losses.

From April 1, 2019, SingPost Group has reclassified the reporting of certain business units under four key business segments: Post and Parcel, Logistics, Property and US Business.

In the Post and Parcel segment, revenue rose marginally, with international revenue rising by 5.2% as a result of higher cross-border e-commerce-related delivery volumes. This was partially offset by a 6.7% decline on the domestic front due to letter mail decline, as well as a suspension of ad-hoc admail services to improve service quality. Profit on operating activities declined 8.9% as operating expenses rose due to the hiring of additional postmen and enhancements made to postmen salaries.

In the Logistics segment, revenue was lower by 2.2% at S$119.5m compared to Q1 2018 (S$122.2m). e-commerce logistics revenue dipped by 7.4% and was partially offset by a 3.3% growth for freight forwarding mainly due to higher volumes. The decline in e-commerce logistics revenue was due to the exit of certain customer contracts at Quantium Solutions, as well as currency depreciation. Without currency depreciation, e-commerce logistics segment would have been largely stable compared to Q1 last year.

In the US Business segment, revenue rose by 7.9% to S$55.5m, due largely to higher freight revenues. However, outsourced expenses to third party vendors for deliveries rose disproportionately and contributed negatively to the business. Overall, while losses on operating activities narrowed year-on-year to -S$6.9m from -S$8.8m in Q1 last year, this was largely due to the absence of depreciation and amortisation expenses. The group had announced that it intends to exit the US businesses and announcements will follow when appropriate.

Source: Singapore Post

*US$ = S$1.38 / € = S$1.55