SingPost profits slumped 39.3% to $30.49m in Q3

A decline in domestic letter mail volumes dragged down its revenue.

Singapore Post (SingPost) saw its profits crash 39.3% YoY to $30.49m in Q3 FY 2019-20, the company announced. Over the same period, revenue declined 2% to $355.91m. Excluding exceptional items, underlying net profit fell 5.1% to $31.2m.

This brings a 0.1% dip in revenue for the first nine months of the fiscal year at $1b. At the same time, net profit slumped 10.8% to $83.90m.

The drop in revenue during the quarter was largely attributed to a decline in domestic letter mail volumes, as well as lower freight forwarding revenue due to a slowdown in global trade activities.

In the Post & Parcel segment, revenue remained largely stable in Q3. A rise in its international revenue to a record of nearly $150m, as well as a growth in domestic ecommerce-related volumes offset an accelerated decline in letter mail volumes.

Meanwhile, contributions from the logistics segment dipped 1.9% in Q3 and 2.2% for 9M, due to a decline in freight forwarding revenue, as well as an additional impact of the bushfires. Quantium Solutions’ revenue jumped 25.6% in Q3 with the addition of new customers in Singapore and North Asia.

Its property segment revenue, which comprises commercial property rental and self-storage business, remained largely stable for Q3 and 9M, with SingPost Centre retail mall and office remaining at nearly full occupancy.