See where SingPost failed in its cash count

There's a loophole in the 7.3% profit rise.

According to a release, SingPost Group revenue grew 9.1% to S$153.7 million in Q2 FY2012/13, with growth in all business segments.

In spite of a 3.1% decline in domestic mail volume, Mail revenue was up 12.5% to S$105.5 million, boosted mainly by a full quarter consolidation of new subsidiary, Novation Solutions as well as by growth in non-traffic activities such as mailroom management, letter shopping and growth in e-commerce packages, reflected in the increased international mail volumes.

Excluding Novation Solutions, Mail revenue was S$ 99.2 million, an increase of 5.7%.

Logistics revenue rose 4.2% to S$55.3 million as e-fulfilment activities in Singapore and the region drove growth in Quantium Solutions and Speedpost. The Group continued to invest to transform Quantium Solutions into a regional e-fulfilment operation.

In Retail, revenue increased 5% to S$17.9 million with continued growth in financial services, largely contributed by postassurance and remittance services, as well as online store Clout Shoppe (e-commerce).

Rental and property-related income declined by 7.0% to S$10.3 million as a result of lower rental income. Total expenses amounted to S$127.0 million, an increase of 13.6%, attributable mainly to cost pressures from operations, inflation and the Group’s continued investments in capabilities and resources to drive its diversification and regionalisation efforts as well as productivity.

The Group’s net profit rose 7.3% to S$32.9 million. Excluding one-off items, underlying net profit was S$32.7 million, comparable to the same quarter last year.