Singapore Post (SingPost) has announced its results for its third quarter of 2020 ending 31 December 2019. Revenues for the quarter were down 2% to S$*355.9m, largely due to an accelerated decline in domestic letter mail volumes as well as weak performance in the freight forwarding business; overall, the company experienced a decline in revenues in all its three business segments: Post and Parcels, Logistics and Property. Underlying net profit was down 5.1% to S$31.2m for the quarter.
The Post and Parcel segment revenues remained stable for Q3 at S$211.6m. The segment experienced lower profits in its domestic letter mail volumes, intensified by higher costs in service quality improvements, including the hiring of additional postmen to handle the increased e-commerce deliveries. International post and parcel revenues posted record high revenue of S$148m on the back of higher cross-border e-commerce related deliveries, and this helped to partially make up the decline in domestic revenue. Profit on operating activities for the segment was down 19.9% to S$38.1m for Q3.
For the Logistics segment, revenues declined by 1.9% in Q3, due to a decline in freight forwarding volumes as a result of the slowdown in global trade and lower contributions from CouriersPlease, the company’s delivery service in Australia. The courier was also affected by the depreciation of the Australian dollar and lower parcel volumes due to the Australian bushfires. Overall, losses on operating activities for the Logistics segment stood at S$0.7m for Q3 this year, largely incurred by CouriersPlease, as compared to S$0.5m profit last year.
In the Property segment comprising commercial property, rental and self-storage business, revenues remained largely stable at S$30.5m for Q3, with SingPost Centre retail mall and office remaining at close to full occupancy. Profit on operating activities for Q3 held stable at S$13.9m.
Paul Coutts, Group Chief Executive Officer, said: “As part of our response to the decline of domestic letter mail volumes, we will continue with our Future of Post strategy to reposition ourselves and transform Singapore’s postal landscape. We expect to commence trials of our new technology in the coming months.”
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