SingPost’s mail revenue fell 2.3% to $130.1m in 3Q15

Despite a postage rate hike from Oct last year.

SingPost may have boosted its net profit, but mail revenue remains to disappoint.

According to a report by OCBC, Singapore Post is still on the lookout for growth, even after a 7.6% YoY rise in revenue to S$239.6m and a 7.3% increase in net profit to S$42.2m in 3QFY1.

Mail revenue fell 2.3% YoY to S$130.1m in 3QFY15 despite a postage rate hike from Oct last year. As for logistics, revenue rose 20.7%, aided by recent acquisitions.

In the quarter, domestic mail revenue fell 1.7% YoY while international mail revenue declined 2.7% as the transshipment business becomes increasingly competitive with more commercial operators in the region. In the face of such competition, the group decided not to sacrifice margins for the sake of revenue.

Looking ahead, the group plans to continue exploring investment opportunities in Asia Pacific as part of its growth strategy. It also announced that it intends to redevelop the retail space in Singapore Post Centre, but details are scarce for now as the group has so far only appointed consultants for advice.