SingPost profit jumps thanks to one-off gains, e-commerce

Reuters News
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Posted: Nov 02, 2015 6:23 AM

SINGAPORE (Reuters) - Singapore Post(SingPost) reported a 38.5 percent jump in profit for its second quarter, boosted by one-off gains, acquisitions and growth of its e-commerce services business.

The company, whose biggest shareholders are Singapore Telecommunications and Alibaba Group Holding, has a history dating back to 1819 but is now racing to find a new future in e-commerce as global mail volumes fall.

E-commerce related-revenue, which includes building online stores for its clients and shipping their parcels and packages, accounted for 29 percent of SingPost revenue for the first half of this year, compared with 26.9 percent a year ago.

However, one-off gains were the biggest factor in the profit leap to S$53.4 million ($38 million) in the three months to Sept. 30, from S$38.6 million a year earlier. Underlying net profit excluding one-off items fell by 4.8 percent.

The company announced last month that it would buy United States-based TradeGlobal for $168.6 million, following its deal to buy a majority stake in Jagged Peak, another U.S. e-commerce services provider.

SingPost shares have fallen 1.2 percent over the past year, against an 11.6 percent fall for the benchmark index.

(Reporting By Aradhana Aravindan; Editing by David Goodman)