SingPost share price up 1.04% after it reported a spike in Q1 earnings

The firm posted a 37.2% year-on-year increase in net profit for the fiscal first quarter at S$25.7 million.

Shares of mail and logistics firm Singapore Post (SingPost) increased by 1.04% on Friday noon after the firm posted a 37.2% year-on-year increase in net profit for the fiscal first quarter at S$25.7 million.

The profit increase this quarter was due to an exceptional fair value loss on warrants from an associated company last year, which were then swapped for direct shareholding, accounting for the absence of the fair value losses this year, SingPost said.

The firm said its revenue for the first quarter rose by 1.0% to S$376.4 million, supported by higher international post and parcel revenue due to cross-border ecommerce deliveries.

Earnings per share for the quarter came in at 0.98 Singapore cent, compared with 0.66 Singapore cent a year ago.

The board has declared an interim dividend of 0.50 Singapore cent per share, the same amount a year ago, to be paid on August 30, this year.

SingPost shares rose 1.04% or S$0.01 to S$0.97 at around 3.30pm Singapore time on Friday.

SingPost continues in transformation journey

Amid the backdrop of declining domestic letter volumes and a weaker economic outlook in SingPost’s key markets, the firm will continue to navigate its way through the transformation journey, leveraging on the continuous growth of ecommerce, said SingPost’s group chief executive Paul Coutts.

In October 2017, the group launched its new General Post Office at Paya Lebar, Singapore, calling it the “future of the post office,” which includes self-service sections such as self-serve postal collection called POPStation.

Meanwhile, the group will “remain firmly focused” on rolling out its mid-and-longer-term measures aimed at improving service levels for its customers in the home market.

From April 1 this year, the mailing company regrouped the reporting of its business units to four key segments: post and parcel, logistics, property, and its United States business.

The group had previously announced that it intends to exit its US ecommerce businesses TradeGlobal and Jagged Peak, and is in the midst of a sale process.

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