SingPost net profit down 23% in Q1

SingPost posted a 23 per cent drop in net profit to S$35.9 million in the first quarter.
SingPost posted a 23 per cent drop in net profit to S$35.9 million in the first quarter. PHOTO: ST FILE

SINGAPORE - Singapore Post has posted a net profit of S$35.9 million in the first quarter, down 23 per cent from the same period a year ago, due mainly to a S$8.4 million one-off gain from the divestments of Novation Solutions and DataPost HK in the first quarter last year.

Revenue in the three months ended June 30 was S$333 million, up 30.9 per cent from the first quarter last year on contributions from recently-acquired e-commerce firms TradeGlobal and Jagged Peak in the United States.

But the operating loss for SingPost's e-commerce segment widened by 82.7 per cent to S$3.5 million in the first quarter from a year ago.

Mr Mervyn Lim, covering group chief executive, said that TradeGlobal and Jagged Peak contributed a small profit to the segment on a combined basis, though this was was offset by continued investments in IT and operational capabilities as part of integration efforts, as well as marketing expenses ahead of the holiday period, when e-commerce volumes are expected to peak.

Total expenses climbed 33.6 per cent to S$298 million in the first quarter.

First quarter earnings per share was 1.49 cents, down from two cents a year ago.

Net asset value per share was 73.68 cents as at June 30, up from 72.26 cents as at March 31.

An interim dividend of 1.5 cents per share was announced, the same as last year. Mr Lim said that SingPost will be reviewing its dividend policy of seven cents a share per year to ensure that is sustainable and linked clearly to underlying earnings.

Earnings were announced after trading hours. The counter closed up a cent at S$1.43 on Thursday.