SingPost's postal business profits fall 14%

The segment is badgered by the slumping domestic mail volume.

Singapore Post missed net profit forecasts by Maybank Kim Eng analysts due to the weakness in its postal business segment.

According to analyst John Cheong, the business continues to face challenges from declining domestic mail as more companies implement e-statements.

This has led to the 14% decline in the segment's operating profits.

However, the decline was offset by strong growth in international mail revenue, especially with higher volumes from the Alibaba Group.

"Nonetheless, operating margin continues to decline due to the shift to low margin international mail. Operating profit for the postal segment fell 14% YoY despite an increase of 9% in revenue," the analyst said.