Singapore Post, the city-state’s postal service operator, says group revenue grew 12.7% to $139.6 million in the third quarter, boosted by inclusion of revenue from Quantium Solutions (formerly known as G3 Worldwide Aspac group of companies).

The group’s net profit grew 20.6% to $44.1 million while its underlying net profit rose 6.3% to $38.9 million.

SingPost says group revenue would have registered a marginal decline of 0.6% without the consolidation of Quantium Solutions, on a comparable basis with the same quarter last year when Quantium Solutions was a joint venture.

Mail revenue declined by 1.2% to $94.4 million as a result of lower domestic mail and philatelic contributions. Logistics revenue, which includes revenue from Quantium Solutions, grew 166% to $49.2 million. Without the consolidation of revenue from Quantium Solutions, Logistics revenue showed a decline compared to the same quarter of last year. In Retail, revenue improved by 4.1% to $16.9 million on the back of higher contributions from financial services.

Higher rentals from Singapore Post Centre and the leasing of space at the repurposed post office buildings contributed to a 22.2% increase in rental and property-related income at $10.2 million. Miscellaneous income increased as a result of the amortisation of deferred gains on intellectual property rights relating to the collaboration with Postea, Inc.

Total expenses for the group increased 12.2% to $100.2 million, due mainly to additional costs with the consolidation of Quantium Solutions. Excluding Quantium Solutions, total expenses would have declined 2.4%. As a result of the Group’s larger staff base, labour and related expenses increased, offsetting the benefits from the Jobs Credit Scheme. Volume- related expenses rose as higher costs of sales offset the decline in traffic expenses. Finance expenses declined as a result of lower interest rates.

Net cash from operating activities amounted to $137.4 million in the nine-month period, compared to $133.8 million in the same period last year.

SingPost has declared an interim dividend of 1.25 cents per ordinary share (tax exempt one-tier), to be paid on Feb 26.