SingPost letter volumes impact revenues

Singapore Post (SingPost) saw revenues fall 2% in the third quarter (Q3) ending December 31 2019 as against the same period in 2018. 

Revenues in Q3 fell to S$355.9 million. The postal operator attributed this to an accelerated decline in letter volumes, though its freight forwarding business also underperformed.

These falls were only partially offset with the highest ever quarterly revenue of S$148 million in the international post and parcel business.

SingPost’s US subsidiaries didn’t make losses.

Excluding the impact of exceptional items, underlying net profit was down 5.1% to S$31.2 million for the quarter.

Paul Coutts, Group Chief Executive Officer, said: “Even though eCommerce-related deliveries have shown strong growth, we are seeing these benefits being eroded by the decline in letter mail volumes.

“As part of our response to the decline of domestic letter mail volumes, we will continue with our Future of Post strategy to reposition ourselves and transform Singapore’s postal landscape. We expect to commence trials of our new technology in the coming months,” Mr Coutts added.