SingPost's Q2 net profit rises 8.5% to $35.6 million

Singapore Post posted a 8.5 per cent rise in its second-quarter earnings, buoyed by its growing regional businesses. Net profit for the three months to Sept 30 was $35.6 million on a 32.6 rise in revenue.

The national postal service provider's revenue reached $203.8 million as the postal firm makes headway in transforming itself into an end-to-end e-commerce firm. For the half year, its net profit rose 2.9 per cent to $73 million on a revenue of $405 million, which was up 32.7 per cent.

SingPost's mail business - its cash cow - rose 13.4 per cent to $119.7 million for the quarter, due to growth in domestic and international e-commerce packages. After seven consecutive quarters of decline in letter-mail volume, the most recent quarter saw a "marginal growth".

Its logistics business, which includes new subsidiaries like storage firm Lock+Store and freight forwarding firm Famous Holdings.

Logistics revenue for the second quarter rose 79 per cent to $94.6 million

Revenue for the retail and e-commerce segment, including its e-shopping vPost and Clout Shoppe services, grew 4.7 per cent to $21.3 million.

"With the fast-growing e-Commerce market in Asia, businesses from Europe and America are looking to tap the huge market potential here," SingPost group chief executive Wolfgang Baier said in a statement.

"SingPost knows the Asian terrain, has access through its postal networks and regional set-up, as well as end-to-end low cost e-commerce logistics solutions for them," he added.

Rental and property-related income including those from childcare centres leasing post office space rose 5 per cent to $11.4 million.

Earnings per share was 1.68 cents for the quarter, up from 1.54 cents in the year-ago period. while net asset value per share as of Sept 30 was 35.44 cents, up from 35.29 cents in March 31.

SingPost has declared an interim quarterly dividend of 1.25 cents per share payable on Nov 29.

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