SingPost reported net loss in the fourth quarter of $ 75.1 million; company to exit the US market



[ad_1]

SINGAPORE (Reuters) – SingPost posted a net loss of S $ 75.1 million in the fourth quarter to shareholders, reversing a net profit of S $ 31.8 million a year ago, according to results released by the postal service on Tuesday. 7 of May).

SingPost's results for the three months ended March 31 reflected the impairment charges of two US loss-making e-commerce subsidiaries.

Its net income fell 86 percent to $ 19 million from $ 135.5 million a year ago, mainly due to losses of $ 98.7 million for its US business, SingPost said.

The company's underlying net income fell 5.8% to S $ 100.1 million in the last fiscal year, excluding the impact of exceptional items and other extraordinary items. It would have closed 15.8 percent higher excluding US companies, SingPost said.

The company's fourth-quarter revenue decreased by 2.1% to S $ 374.1 million compared to the same quarter a year ago.

Meanwhile, SingPost revenue increased 2.9% to S $ 1.56 billion in the last financial year, boosted by the growth in its post and installment and ownership segments. Earnings in the postal and parcel segment increased by 4.1%, driven by the growth of international mail.

Revenue from its property segment increased 13.5%, with operating profit increasing 29.8%, largely due to rental revenue from the SingPost Center mall.

A final dividend of S $ 0.20 per share was proposed by the board of directors.

OUT OF THE US MARKET

SingPost has decided to put its US business on sale and exit the US market.

A total impairment of $ 98.7 million was recorded in the book value of its US e-commerce subsidiaries TradeGlobal and Jagged Peak. This amount includes the balance of S $ 67.6 million for goodwill and intangible assets, and the balance of S $ 31 million for property, plant and equipment, according to SingPost.

Revenue for its e-commerce segment also fell 0.3 percent as it met the challenges in the US amid "intensifying competitive and cost pressures" as well as increasing customer bankruptcies in the industry, SingPost said.

"The group expects to continue to account for operating losses in US businesses until it completes its exit," the company said.

SingPost faced "ever-increasing challenges" by turning the US business around, said group CEO Paul Coutts.

"The Group's competitive advantage lies in Asia-Pacific, where we are seeing the highest growth in volumes and revenues, and we will continue to refine our business to leverage growth," he said.

"In the short term, we continue to focus on improving our operations in Singapore to better meet the needs of customers in our domestic market."

[ad_2]

Source link