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Singapore Post posts 37% rise in 3Q earnings to $43 mil on better performance, one-off tax adjustment

Samantha Chiew
Samantha Chiew2/2/2018 08:30 AM GMT+08  • 3 min read
Singapore Post posts 37% rise in 3Q earnings to $43 mil on better performance, one-off tax adjustment
SINGAPORE (Feb 2): Singapore Post (SingPost) announced that its 3Q17/18 earnings increased 37.2% to $43.0 million, compared to $31.4 million in 3Q16/17.
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SINGAPORE (Feb 2): Singapore Post (SingPost) announced that its 3Q17/18 earnings increased 37.2% to $43.0 million, compared to $31.4 million in 3Q16/17.

This was driven by improved performance in the Postal, eCommerce and Property divisions, as well as a $6.9 million one-off adjustment of deferred tax arising from changes in the US corporate tax rate.

Excluding exceptional items, underlying net profit was up 11.9% to $35.2 million.

Revenue for the quarter increased 11.7% to $412.8 million from $369.4 million last year, fuelled by growth across the group.

Postal revenue increased 15.8% , with International mail revenue rising 37.7% to cross $100 million, driven by higher cross-border eCommerce deliveries, including those for the Alibaba Group’s Double-Eleven event in November 2017.

Logistics revenue grew 1.5%. SP Parcels and CouriersPlease increased last mile delivery volumes in Singapore and Australia respectively, while Famous Holdings saw higher freight forwarding volumes.

eCommerce revenue rose 19.7% in the quarter and more than halved its operating loss. Jagged Peak recorded a 43.9% surge in revenue, reflecting the US festive peak retail season, while TradeGlobal overcame the loss in revenue from major customers that was disclosed previously, growing revenue marginally as it added new customers.

The group’s rental and property-related income was 52.9% higher at $13.9 million compared to $9.12 million a year ago, driven by rental income from the SingPost Centre retail mall that was opened in Oct 2017.

During this period, the group recorded a gain in miscellaneous other income of $2.86 million, compared to a loss of $1.77 million in the previous year, due largely to favourable trade related foreign exchange translation differences.

However, finance expenses for the quarter came in at $3.13 million, compared to a gain of$1.65 million last year, mainly due to unfavourable non-trade related foreign exchange translation differences.

The group also saw share of profit of associated companies and joint ventures of $0.95 million, compared to a loss of $0.21 million a year ago, largely driven by an improved performance at Indo Trans Logistics, our integrated logistics associate in Vietnam.

Income tax expenses has also decreased by 65.3% to $2.94 million from $8.49 million in the previous year, due to a one-off adjustment of deferred tax of S$6.9 million arising from changes in the US corporate tax rate.

For the quarter, the group has declared an interim dividend of 0.5 cent per ordinary share (tax exempt one-tier) to be paid on Feb 28.

Paul Coutts, group CEO of Singpost, says, “We will move ahead with our strategy to become a leading postal and eCommerce logistics company to realise the full potential of our transformation.”

Shares in SingPost last traded at $1.30 on Thursday.

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