Singapore Post posted a 0.6% increase in 3Q earnings to $43.5 million from a year ago.
Revenue for the three months to December rose 32% to $31 & 18 million. For the nine months to December, earnings increased 17.6% to $143.5 million. This came on the back of a 24.3% increase in revenue to $834 million.
The increase in revenue was lifted by the continuing expansion of SingPost’s e-commerce and logistics activities, as well as contributions from new units.
E-commerce-related revenues rose 53% and made up 33.4% of group revenue from 27.1% in the previous year.
Meanwhile, overseas revenues increased to 41.9% of group revenue in the first nine months from 31% a year ago.
Revenue from the groups logistics operations increased 39.5% to $458.4 million mainly due to the growing contributions from e-commerce logistics activities and the inclusion of revenues of new subsidiaries.
Over the past nine months, the integration of Quantium Solutions and CouriersPlease, along with SingPosts partnerships, boosted the company’s e-commerce logistics capabilities in the region. Mail revenue was stable at $372.3 million despite the cessation of revenue from hybrid mail with the divestment of Novation Solutions in 1Q and DataPost in 2Q.
Retail and e-commerce revenue rose 50.8% to $102.6 million due to higher e-commerce growth and the inclusion of new US subsidiary TradeGlobal’s revenue from Nov 14, 2015 of $29.4 million.
For 3Q, SingPost has declared an interim dividend of 1.5 cents per ordinary share to be paid on March 4.
Together with the 1.5 cents paid on Aug 27, 201S and on Nov 27, 2015, a total of 4.5 cents would be paid for the first nine months of the current fiscal year.
Shares in SingPost ended 1.13% higher at $1.345 on Thursday.
This article first appeared in The Edge Singapore Market Report.
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