Singapore Post (SingPost) has experienced a 40.4% decline in net profit for its first quarter of 2018, which ended 30 June 2018. The net profit stood at SG$18.7 million, attributing the losses to the fair value loss on warrants from an associated company, reflecting changes in the market value of the financial instrument and higher tax.
However, there was a 3.3% increase in revenue for its first quarter of 2018, which ended 30 June 2018. Revenue rose to SG$372.6 million, attributing it to the rise in international mail and last-mile deliveries as well as drive in e-Commerce leading to increased property rental income.
Excluding the one-off items, operating profit rose 1.2% to SG$39.2 million. In addition, the underlying net profit was down 9.8% to SG$24.7 million, as the improved operating profit before exceptional items was offset by lower contributions from associates investing for growth and increased tax.
The company also saw a 4.3% decline in its e-commerce segment in terms of revenue as a result of changes in business mix. Operating profit was impacted by ongoing integration efforts of the US businesses. Overall, the group continues to benefit from positive global e-commerce trends, with e-commerce-related revenue from across the segments rising 8.8% to make up 53.7% of group revenue, the statement added.
Earnings per share fell from 1.22 cents to 0.66 cents in the first quarter of 2018. The board of directors have declared an interim dividend of 0.5 cent per ordinary share to be paid on 31 August 2018.
"As strong growth in global e-commerce drives cross-border and last-mile deliveries, we are focused on executing well to keep up our operational momentum as we transform SingPost for the future,” Paul Coutts, group CEO, said.
Last year, CapitaLand and SingPost relaunched the new SingPost Centre following two years of redevelopment. The new centre boasts a “digital shopping experience” and aims to be in line with the Singapore government’s Smart Nation initiative. It is also double the gross retail floor area from previously.