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SingPost sees 5.1% rise in Q1 earnings

Growth due to eCommerce-related activities, which helped to offset declines in its traditional postal business.

SINGAPORE: Singapore Post reports a 5.1 per cent rise in first quarter earnings, compared to a year ago. Net profit for the three months ended June 30 rose to S$39.2 million dollars, up from S$37.3 million in the same quarter last year. This came on the back of higher group revenue which rose 4.8% on year to S$210.9 million.

SingPost said in a statement on Tuesday (Aug 5) that the growth was due to its eCommerce-related activities, which helped to offset declines in its traditional postal business. Revenue from financial services and eCommerce services grew 9.7 per cent to S$22.8 million.

SingPost said revenue in its eCommerce services was boosted by its Omigo and vPOST business. On its strategic investment, SingPost says Alibaba Investment, a unit of China-based eCommerce firm Alibaba Group, now holds a 10.32% stake in the company.

SingPost's Group Chief Executive Officer Dr Wolfgang Baier said "to capitalise on the growing ecommerce trends, we need to scale up our investments in logistics infrastructure in Singapore and in the region. As for our core mail business, we are investing S$100 million over three years from FY2013/14 to upgrade the postal infrastructure and improve service quality and productivity in Singapore."

SingPost has proposed an interim quarterly dividend of 1.25 cents per share.   

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