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SingPost registers S$25.7m net profit in Q1, reversing previous quarter's loss

SingPost registers S$25.7m net profit in Q1, reversing previous quarter's loss

A general view of the SingPost Regional eCommerce Logistics Hub in Singapore. (File photo: AFP/ROSLAN RAHMAN)

SINGAPORE: Singapore Post (SingPost) on Friday (Aug 2) announced a first quarter net profit of S$25.7 million, after posting a net loss in the previous quarter.

For the quarter ending Jun 30, net profit attributable to equity holders jumped 37.2 per cent to S$25.7 million from the previous year. 

Revenue rose 1.0 per cent to S$376.4 million on the back of higher international post and parcel revenue arising from cross-border e-commerce deliveries.

Underlying net profit for the first quarter rose 3.9 per cent to S$25.6 million, owing to improved results from associated companies and joint ventures.

In its fourth quarter, SingPost posted a net loss of S$75.1 million mainly due to impairment charges of S$98.7 million for two loss-making American subsidiaries which it has put up for sale ahead of its exit from the US market.

"The group will make further announcements when appropriate," SingPost said about its US e-commerce subsidiaries, TradeGlobal and Jagged Peak. 

READ: SingPost to do more to improve service standards amid ‘early signs’ of improvements - Singapore chief

After reporting exceptional fair value loss on warrants from an associated company last year, SingPost posted no fair value losses this year as it swapped the warrants for direct shareholding, the company said.

Results from its parcel delivery service in Australia, CouriersPlease, were affected by the weakening Australian dollar.

"Without depreciation of the Australian dollar, eCommerce logistics segment would have been largely stable compared to Q1 last year," SingPost said.

Revenue from SingPost's property segment, which comprises commercial property, rental and self-storage business, remained largely stable at S$29.8 million.

READ: SingPost fined S$300,000 for not meeting mail delivery service standards in 2018

Group CEO Mr Paul Coutts said: “Amid the backdrop of declining domestic letter volumes and a weaker economic outlook in our key markets, we will continue to navigate our way through the transformation journey, leveraging the continuous growth of eCommerce. 

"Meanwhile, we remain firmly focused on rolling out our mid- and longer-term measures aimed at improving service levels for our customers in the home market.”

Shareholders will receive an interim dividend of 0.5 cent per ordinary share (tax exempt one-tier) on Aug 30, SingPost said.

Source: CNA/jt(rw)

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