Singapore Post Q3 profit climbs on eCommerce growth, US tax changes

The Singapore Post sign at a post office in Singapore. REUTERS

Singapore Post, which provides domestic and international postal services, reported a 37.2 percent jump in third-quarter profit, driven by improved performance in the Postal, eCommerce and Property divisions.

Net profit rose to S$43 million in the quarter ended December 31 from S$31.4 million a year earlier, the company said in a regulatory filing on Thursday.

Profit also got a boost from S$6.9 million one-off adjustment of deferred tax due to the changes in the U.S. corporate tax rate, Singapore Post said.

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

Revenue for the quarter increased 11.7 percent to S$412.8 million.

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"Good execution across the group saw us capture the benefits of a festive peak season in which eCommerce volumes made new records globally," Paul Coutts, Group Chief Executive Officer said in a statement.

Singapore Post, commonly known as SingPost, said postal revenue increased 15.8 percent while international mail revenue rose 37.7 percent to cross S$100 million, driven by higher cross-border eCommerce deliveries, including those for the Alibaba Group's Double-Eleven event in November 2017.

eCommerce revenue rose 19.7 percent in the quarter and more than halved its operating loss, the company said.

Rental and property-related income increased 52.9 percent, driven by rental income from the SingPost Centre retail mall that was opened in October 2017.

SingPost declared an interim dividend of 0.50 cents per share.

Shares in the Singapore-listed company climbed 3.9 percent to S$1.35 in a broader market that was down 0.2 percent.

This article was first published on February 2, 2018