SINGAPORE Post (SingPost) on Friday (Aug 16) announced first-quarter operating profit of S$24.4 million, up 105.2 per cent from S$11.9 million in the corresponding period the previous year.
Revenue rose 22.4 per cent on the year to S$494.8 million, from S$404.1 million previously.
Additionally, operating expenses rose 20.1 per cent year on year to S$470.7 million, from S$391.9 million.
The national postal service provider said the rise in revenue was supported by growth in its Australia and Singapore businesses, which outweighed declines in the group’s international and freight forwarding businesses.
The global e-commerce logistics market remained challenging, while volatility in air conveyance costs and geopolitical developments weighed on its international business, it added.
Property revenue rose on higher rental income from SingPost Centre. As at Jun 30, the occupancy rate at the site was 96 per cent, inching downwards from 96.2 per cent.
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In the Republic, the group’s revenue was boosted by higher e-commerce volumes and postage rates.
This came even as letter mail volumes continued to fall and the post office network remained in the red. In Singapore, letter mail and printed paper volumes fell 8.1 per cent on the year to 87.8 million items, from 95.6 million items.
The group, however, noted that its Singapore business posted a profit in the first quarter, compared to a loss previously.
SingPost said it is “engaging with the government on a future operating model for postal services designed to lower costs, broaden service accessibility for the public and improve customer experience”.
Meanwhile, the group’s performance in Australia strengthened following the consolidation of Border Express.
The distribution business in Australia posted a 5.3 per cent year-on-year growth in revenue on new customer acquisitions, and a 24.4 per cent rise in operating profit on the year due to better cost management.
The group appointed Merrill Lynch Markets Australia as advisers to its business in the country. The review, which was announced in June, is forecast to be concluded by the end of 2024.
This is part of the group’s plans to achieve scale in the country by exploring near-term partnerships that can contribute to growth, providing equity to deleverage acquisition debt, and creating an independent valuation benchmark.
The group said it is actively looking to monetise its non-core assets, and diversify revenue streams amid a challenging international operating environment.
SingPost closed 2.3 per cent or S$0.01 higher at S$0.44 on Thursday.
