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

Singapore Post, which provides domestic and international postal services, reported a 9.5 percent drop in second-quarter profit due to lower domestic mail revenue, higher costs and lack of one-off gains.

Net profit fell to S$28.5 million in the quarter ended September 30 from S$31.4 million a year earlier.

Earnings in the corresponding period in the previous year had included a one-off gain from the dilution of interest in an associated company.

Revenue for the quarter increased 10.2 percent to S$354.7 million, due to growth in the postal and logistics segments.

Singapore Post, commonly known as SingPost, said domestic mail revenue decreased as more and more organisations are moving to electronic statements.

But postal revenue increased 16.9 percent as international mail revenue grew 45.2 percent on the back of higher cross-border
eCommerce deliveries, particularly with stronger volumes from the Alibaba Group, the company said.

Logistics revenue, which contributes nearly half of group revenue, rose 7.6 percent in the quarter as SP Parcels and CouriersPlease made more last mile deliveries in Singapore and Australia.

Total expenses increased 14.7 percent to S$341.4 million on higher volume-related expenses as the group seeks to grow volumes to derive economies of scale from operating leverage.

SingPost declared an interim dividend of 0.50 cents per share.

Shares in the Singapore-listed company fell 0.8 percent to S$1.29 in a broader market that was down 0.4 percent.