SingPost said revenue for the first nine months soared 24.3 percent to US$594 million, with operating profit up 18.5 percent rising to $125.6 million with strong growth in logistics and e-commerce-driven international mail, as well as one-off gains from divestments.
The financial improvement came during the peak season and arose from increases in scale and synergies from post-merger integration of new subsidiaries, the postal operator said in a statement.
The group recently acquired U.S.-based e-commerce providers TradeGlobal Holdings and Jagged Peak and integrated them into a new division, SP eCommerce.
“The investments we made in the last few years are driving up both top and bottom line growth,” said Mervyn Lim, deputy group chief executive officer (corporate services) and group chief financial officer, SingPost.
Transformation is on track
Lim emphasized that the "transformation of the group into a global e-commerce logistics operator" is on track. E-commerce activities earned 33.4% of total revenue for the nine months ended in December, up from 27.1% a year earlier.
Overseas revenue made up 41.9% of the company's total for the nine-month period, up from 31% the year before, thanks partly to a stronger partnership with top Chinese e-commerce player Alibaba Group. SingPost's cross-border e-commerce volume increased 60% on the year to 4.6 million packages for November, when Alibaba ran its annual Nov. 11 "Singles Day" bargain.
At the press briefing, Lim also gave an update on Alibaba's proposed 5% stake increase through a purchase of newly issued shares. He said the company was working to extend the deadline from the end of February because SingPost "requires a longer time to fulfill the conditions" for the transaction.
Nol van Fenema