SingPost profit jumps thanks to one-off gains, e-commerce

SingPost reported a 38.5 per cent jump in profit in its second quarter.
SingPost reported a 38.5 per cent jump in profit in its second quarter.PHOTO: SINGAPORE POST

SINGAPORE (REUTERS) - Singapore Post (SingPost) reported a 38.5 per cent jump in profit for its second quarter, boosted by one-off gains, acquisitions and growth of its e-commerce services business.

The company, whose biggest shareholders are Singapore Telecommunications and Alibaba Group Holding, has a history dating back to 1819 but is now racing to find a new future in e-commerce as global mail volumes fall.

E-commerce related-revenue, which includes building online stores for its clients and shipping their parcels and packages, accounted for 29 per cent of SingPost revenue for the first half of this year, compared with 26.9 per cent a year ago.

However, one-off gains were the biggest factor in the profit leap to S$53.4 million in the three months to Sept. 30, from S$38.6 million a year earlier. Underlying net profit excluding one-off items fell by 4.8 per cent.

The company announced last month that it would buy United States-based TradeGlobal for US$168.6 million, following its deal to buy a majority stake in Jagged Peak, another U.S. e-commerce services provider.

SingPost shares have fallen 1.2 per cent over the past year, against an 11.6 percent fall for the benchmark index.