SingPost's Q3 net profit rises 37.2% to S$43m on broad growth, US tax changes

SingPost group chief executive Paul Coutts said good execution across the group during the festive peak season saw its eCommerce volumes hit new records. PHOTO: BT

SINGAPORE - Singapore Post's third-quarter net profit rose 37.2 per cent to S$43 million on better performance in its postal, eCommerce and property segments and from a one-off S$6.9 million adjustment from changes in the US corporate tax rate.

Excluding exceptional items, underlying net profit rose 11.9 per cent to S$35.2 million for the three months ended December 2017.

Earnings per share for the quarter stood at 1.73 cents, up from 1.28 cents previously.

For its third quarter, the company declared a dividend of 0.5 Singapore cent per ordinary share, which will be paid on 28 February 2018. This is similar to what was declared one year ago.

Revenue grew 11.7 per cent to S$412.8 million.

In the postal segment, revenue rose 15.8 per cent to S$166 million in Q3, as strong growth in international mail revenue helped to offset the decline in domestic mail revenue.

Logistics revenue increased 1.5 per cent to S$173.9 million, as SP Parcels and Couriers Please's revenue increased last-mile delivery volume in Singapore and Australia respectively. Famous Holdings' revenue grew in line with higher freight forwarding volumes eCommerce revenue rose 19.7 per cent to S$97.1 million, as Jagged Peak revenue rose 43.9 per cent as volume surged over the US peak shopping season from October to December. TradeGlobal overcame the loss in revenue from two major customers as previously disclosed and grew revenue marginally in Q3, aided by the addition of new customers.

Rental and property-related income increased 52.9 per cent, driven by rental income from the SingPost Centre retail mall that was opened in October 2017. Committed occupancy as at Dec 31, 2017 was 85.9 per cent, up from 80.4 per cent as at Sept 30, 2017.

Paul Coutts, group chief executive officer, said: "Good execution across the group saw us capture the benefits of a festive peak season in which eCommerce volumes made new records globally. ...We will move ahead with our strategy to become a leading postal and eCommerce logistics company to realise the full potential of our transformation."

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