SingPost's e-commerce operating costs reach $4.2m

Operational expenses were at $3.5m a year ago.

Singapore Post is eyeing a turnaround plan for its eCommerce business as the segment's costs went up to $4.2m versus $3.5m a year ago.

"Over the course of the next few months, SingPost’s CEO and the leadership team will be working with the board to review and update SingPost’s strategy, and deliver a roadmap focusing on improving the performance of the group," OCBC Investment Research analyst Low Pei Han said.

Low noted that SingPost continues to execute a turnaround business plan, but TradeGlobal, which the group acquired in 2015, is not expected to be profitable for FY18.

Meanwhile, as for e-logistics hub, the analyst said utilisation level has also increased from 40-50% in 4Q17 to 65% in 1Q18, aided by Lazada.

To recall, SingPost recorded a 13.6% drop in net profit to $31m in the past quarter. The decline in the was due to lower domestic mail volumes, costs from planned investments as well as increased competition in the Logistics segment, losses in the US eCommerce business and associates which are investing for growth.