SingPost has reported higher revenue for 1QFY20/21 because a bigger volume of parcels handled. However, it had to bear higher conveyancing and freight costs because of the “massive disruption” to international air freight in and out of Singapore and its operating earnings have been hit as a result.

For the three months to June 30 2020, SingPost reported revenue of $360 million, up 12% y-o-y. However, its operating profit halved to $22 million in the same period, said the company in its first-quarter business update.

Post and parcel revenue increased by 15% y-o-y to $215 million, but operating profit was down 62% y-o-y t $14 million. 

The company’s property business suffered during this Covid-19 period too. Revenue was down 19% y-o-y to $24 million, and operating profit was down 16% y-o-y to $11 million. 

Besides a drop in footfall as a result of the lockdown, SingPost provided some relief to its tenants and the costs will be booked for both 1Q and 2Q. “In spite of these challenges, occupancy remained stable,” said SingPost.

“There remains significant uncertainty in the operating environment due to Covid-19. Group earnings and operating cashflows will continue to face headwinds from the disruptions to businesses as detailed above. The extent and duration of the headwinds will depend on when the global pandemic situation will ease up,” the company said.

SingPost closed Aug 11 at 70 cents, down a cent.