SingPost revenue up 19.4% in Q2 on back of e-commerce

The growth in e-commerce logistics remained a key revenue driver for Singapore Post (SingPost) in the second quarter.

The firm delivered a 19.4 per cent increase in turnover to $263 million in the three months to Sept 30, compared with $220 million a year earlier.

E-commerce-related revenue accounted for 29 per cent of the group's first-half turnover of about $518 million, up from 26.9 per cent a year earlier.

Net profit for the quarter came in at $53.4 million, up 38.5 per cent, with one-off gains from divesting subsidiaries. The company divested Novation Solutions in the first quarter and DataPost in the second.

Its half-year net profit was similarly boosted, climbing nearly 27 per cent to $100 million.

  • AT A GLANCE

    Revenue: $263 million

    Net profit: $53.4 million

    Dividend: 1.5 cents per share

"We emerge with a more stable and stronger foundation to our business since the start of our accelerated transformation. It is now showing in the numbers," said SingPost chief executive Wolfgang Baier.

SingPost has been investing in growing its e-commerce logistics business. Last month it announced the acquisition of majority stakes in logistics provider Jagged Peak for $22.5 million and end-to-end e-commerce firm TradeGlobal for $236 million.

In July it announced a conditional joint venture agreement with Alibaba Investment, which will acquire a 34 per cent stake in a SingPost subsidiary, Quantium Solutions International, for $91.7 million.

Earnings per share was 2.31 cents for the quarter compared with 1.63 cents a year earlier while net asset value per share came in at 67.93 cents as at Sept 30, down from 68.37 cents as at the end of March.

SingPost has declared an interim dividend of 1.5 cents per ordinary share for the second quarter, up from 1.25 cents the same period last year. Together with the 1.5 cents paid on Aug 27, this brings the total dividend payout for the first half to three cents.

The results were released after markets closed.

SingPost shares closed down half a cent at $1.89 yesterday.

A version of this article appeared in the print edition of The Straits Times on November 03, 2015, with the headline 'SingPost revenue up 19.4% in Q2 on back of e-commerce'. Print Edition | Subscribe