SingPost has announced revenues of S$*441.4m for the third quarter of 2018. This was driven by stronger contributions across all business segments during the global e-commerce peak season, meaning it had a7.6% increase in revenues in comparison to the prior year period.
Operating profit increased by 8.5% to S$42.2m, due to higher contributions from Post & Parcel, Logistics & Property but was slightly offset by continued losses in the US.
Operating expenses increased by 8.8% in Q3 to S$398.3m. This was largely due to higher volume-related expenses and provisions for ongoing contractual disputes with eCommerce customers in the US.
The Post and Parcel segment reported revenues of S$213.2m which represented a 9.0% rise in comparison to the Q3 2017 figure. This was driven by both domestic and international e-commerce deliveries over the peak season which rose to 1.6% and 16.3% respectively. Operating profit rose to 10.0% in Q3 to S$47.6m.
In the Logistics segment, there was an increase of 3.6% in revenues to S$134.0m, which was again driven by the freight forwarding business under Famous Holdings. Quantium Solutions is improving the profitability of its customers resulting in an increase in operating profit of 67.4% in Q3 to S$1.8m.
In the eCommerce segment, revenues rose 8.7% in Q3, mainly due to volumes rising over the peak season in the US. However, there was a greater year-on-year loss of S$13.4m. The loss has been attributed to competitive pressures intensifying in the US which it says has led to an increase in bankruptcies and compressed margins.
Source: SingPost
*S$=€0.63 / S$=$0.74
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