SINGAPORE : Singapore Post on Friday reported a 13 percent rise in full-year earnings, beating market expectations.
Net profit for the year ended in March came in at S$140 million, while revenue rose nearly 6 percent to S$436 million, thanks to cost cutting and stronger-than-expected sales in the fourth quarter.
SingPost said it aims to focus on key growth areas to hold its own against new market entrants.
SingPost reported all-round growth across its business segments in mail, logistics and retail services in the business year just ended.
It processed a higher-than-expected volume of mail in the three months ended in March - even higher than the December quarter which is traditionally the peak season for letters and greeting cards.
B T Lau, Group CEO, Singapore Post, said, "We have delivered good numbers (in the fourth quarter). The traffic for the public mail actually grew 1.9 percent. Traditionally it has been declining by 10 percent. This is contributed by better Chinese New Year promotions that we (had), and also the general economic situation in Singapore is positive."
Mail revenue, which grew just over 4 percent, makes up more than three-quarters of the company's total revenue.
But the business environment is changing, amid the liberalisation of the basic mail services market in Singapore.
This market includes postal mainstays such as corporate mail, like bills and bank statements.
Analysts said when the postal services market had opened up previously in other countries like New Zealand and UK, the mail volume had declined by some 20 percent over a two-year period.
But SingPost said the decline in mail volume has been an industry trend, which is why it has been focusing on other growth areas.
These include growing its logistics or express mail services, retail tie-ups and direct mail services.
Mr Lau said, "In terms of prices, amongst all the postal operators, we're one of the lowest in the world. The basic mail services market itself is very small, it's roughly $200 million. So it's already declining.
"We've been focusing on growing the direct mail. In Singapore, only 4 percent of total ad spending is spent on direct mail. So far, after the last few quarters, we have increased it to 6 percent. In the UK, 14 percent of the ad spending is spent on direct mail and in the US, it's 24 percent. So there is still a lot of room to grow."
SingPost noted that no players have applied for postal licenses under the liberalised environment so far.
That was partly because an industry regulatory framework is expected to be worked out and approved at the end of the year.
SingPost has proposed a final dividend of 2.5 cents a share - bringing its total payout for the year to 6.25 cents.
Net profit for the year ended in March came in at S$140 million, while revenue rose nearly 6 percent to S$436 million, thanks to cost cutting and stronger-than-expected sales in the fourth quarter.
SingPost said it aims to focus on key growth areas to hold its own against new market entrants.
SingPost reported all-round growth across its business segments in mail, logistics and retail services in the business year just ended.
It processed a higher-than-expected volume of mail in the three months ended in March - even higher than the December quarter which is traditionally the peak season for letters and greeting cards.
B T Lau, Group CEO, Singapore Post, said, "We have delivered good numbers (in the fourth quarter). The traffic for the public mail actually grew 1.9 percent. Traditionally it has been declining by 10 percent. This is contributed by better Chinese New Year promotions that we (had), and also the general economic situation in Singapore is positive."
Mail revenue, which grew just over 4 percent, makes up more than three-quarters of the company's total revenue.
But the business environment is changing, amid the liberalisation of the basic mail services market in Singapore.
This market includes postal mainstays such as corporate mail, like bills and bank statements.
Analysts said when the postal services market had opened up previously in other countries like New Zealand and UK, the mail volume had declined by some 20 percent over a two-year period.
But SingPost said the decline in mail volume has been an industry trend, which is why it has been focusing on other growth areas.
These include growing its logistics or express mail services, retail tie-ups and direct mail services.
Mr Lau said, "In terms of prices, amongst all the postal operators, we're one of the lowest in the world. The basic mail services market itself is very small, it's roughly $200 million. So it's already declining.
"We've been focusing on growing the direct mail. In Singapore, only 4 percent of total ad spending is spent on direct mail. So far, after the last few quarters, we have increased it to 6 percent. In the UK, 14 percent of the ad spending is spent on direct mail and in the US, it's 24 percent. So there is still a lot of room to grow."
SingPost noted that no players have applied for postal licenses under the liberalised environment so far.
That was partly because an industry regulatory framework is expected to be worked out and approved at the end of the year.
SingPost has proposed a final dividend of 2.5 cents a share - bringing its total payout for the year to 6.25 cents.
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