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.
