SingPost sees Q3 net profit slip 0.2 per cent to $39.4 million

Singapore Post third-quarter net profit slipped 0.2 per cent to $39.4 million, a flat performance due to continued investments into transforming the business.

The postal firm has been working on turning itself into a fully fledged e-commerce firm.

Revenue surged 30.2 per cent to $222.6 million for the three months to Dec 31, due to acquisitions' contributions and growth in e-commerce related activities.

SingPost's mail business grew 12.8 per cent to $133.2 million for the quarter, as e-commerce packages volumes continue to grow, raising domestic and international mail revenue.

Its logistics business, which includes acquired firms General Storage Company and freight forwarding firm Famous Holdings, saw a boost.

Logistics revenue for the third quarter rose 64.5 per cent to $101.2 million.

Revenue for the retail and e-commerce segment fell 6.1 per cent to $22.6 million, as the decline in contributions from agency services offset the increase in financial services and e-commerce business.

"We are seeing encouraging results from our transformation efforts especially from the new investments as well as new business areas such as e-Commerce and related activities," said SingPost group chief executive Wolfgang Baier in a statement.

Rental and property-related income rose 1.9 per cent to $11.4 million, with growth in rental income from SingPost's properties.

Earnings per share was 1.87 cents for the quarter, down from 1.89 cents in the year-ago period. while net asset value per share as of Dec 31 was 36.43 cents, up from 35.29 cents as of March 31.

SingPost has declared an interim quarterly dividend of 1.25 cents per share payable on Feb 28.

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