SingPost's profits up 11.9% to $35.16m in Q3

Improved postal, logistics, and e-commerce performance boosted revenue.

Singapore Post (SingPost) showed a strong performance in Q3 as its net profit rose 11.9% YoY from $31.41m to $35.16m.

According to its financial statement, revenue rose 11.7% YoY thanks to growth across its postal, logistics, and e-commerce.

SingPost's e-commerce revenue saw the fastest growth at 19.7%. Jagged Peak revenue soared 43.9% as volume surged over the US peak shopping season from October to December. TradeGlobal overcame the loss in revenue from two major customers and grew revenue marginally in Q3, aided by the addition of new customers.

Meanwhile, postal revenue grew 15.8% YoY as international mail revenue surged 37.7% to $100m backed by higher cross-border e-commerce deliveries including a collaboration with Alibaba Group. This offset the decline in domestic mail revenue.

Logistics revenue grew 1.5%. SP Parcels and Couriers Please’s revenue rose with increased last-mile delivery volume in Singapore and Australia respectively, whilst Famous Holdings’ revenue grew in line with higher freight forwarding volumes.

This was offset by a revenue decline at Quantum Solutions, which continues to face competitive pressures at its Hong Kong operations, completely negating the improved performance in Singapore's Regional e-commerce Logistics Hub.

SingPost's rental income jumped 52.9% thanks to rental income recognition for the SingPost Centre Mall, opened October 2017. The mall's occupancy rate rose from 80.4% in September to 85.9% by December.

Total expenses also increased 14.7% largely due to the increase in volume-related expenses, as the group seeks to grow volumes to benefit from economies of scale from operating leverage.