SingPost flourishes on eCommerce focus
In this article (4)
A firm focus on serving the booming eCommerce market has helped Singapore’s national postal service achieve a record first quarter profit.
SingPost on Wednesday says in made S$46.6 million net profit in the first three months as its eCommerce strategy paid dividends. Its performance comes in an era when postal services internationally are struggling to break even and remain relevant as traditional mail volumes fall.
Like every other mail service provider, traditional mail volumes declined in the quarter – by 1.6 per cent – but a modest increase in postal charges offset declining traditional postage income. However revenue from logistics, which includes SingPost’s eCommerce logistics business, soared 43.6 per cent to S$140.1 million – $15 million more than postage revenue.
The company also achieved a one-off gain from divestments.
Questions & Answers
Q.What was the main reason for SingPost's record first quarter profit?
What was the main reason for SingPost's record first quarter profit?
SingPost achieved its record profit primarily due to a strong focus on serving the booming eCommerce market. Their eCommerce strategy paid dividends, offsetting the decline in traditional mail volumes and contributing significantly to revenue growth.
Q.Did SingPost's traditional mail business also perform well in the quarter?
Did SingPost's traditional mail business also perform well in the quarter?
No, traditional mail volumes declined by 1.6 per cent in the quarter. However, a modest increase in postal charges helped to offset some of the resulting decrease in traditional postage income, preventing a larger impact.
Q.How significant was the growth in SingPost's logistics revenue compared to its traditional postage revenue?
How significant was the growth in SingPost's logistics revenue compared to its traditional postage revenue?
Revenue from logistics, which includes eCommerce logistics, grew substantially by 43.6 per cent to S$140.1 million. This figure was S$15 million higher than the revenue generated from traditional postage services, highlighting a shift in business focus.