Singapore Post

[la papillion]

I don't see it happening at all too. Maybe that's why they started to venture to outside singapore for some growth... like what comfortdelgro did. I was a little surprised that most of the revenue from comfort comes from overseas.

I think all the s'pore major monopolies are doing that too. Market size here is just too small.

[winston]

SingPost's Q2 net profit up 8.3 pct By ANGELA TAN

Singapore Post on Thursday reported net profit for the second quarter ended September 30, 2009 rose 8.3 per cent to S$40.53 million.

Excluding one-off items such as the benefits from the Jobs Credit Scheme and amortisation of deferred gain on intellectual property rights, the group's underlying net profit declined by 8.6 per cent or S$3.3 million to S$35.4 million.

Revenue rose 7.9 per cent to S$130.25 million due to the inclusion of revenue of Quantium Solutions Group.

Without Quantium, this quarter's revenue was down by 4.5 per cent. Mail revenue decreased due to lower international mail contributions.

Source: Business Times

[Aspellian]

Interesting development for Singpost. monetising various assets aka SMRT.
Market price stablised above $1 despite recent market turmoil.

Singapore Post, the city-state’s postal service operator, says group revenue grew 12.7% to $139.6 million in the third quarter, boosted by inclusion of revenue from Quantium Solutions (formerly known as G3 Worldwide Aspac group of companies).

The group’s net profit grew 20.6% to $44.1 million while its underlying net profit rose 6.3% to $38.9 million.

SingPost says group revenue would have registered a marginal decline of 0.6% without the consolidation of Quantium Solutions, on a comparable basis with the same quarter last year when Quantium Solutions was a joint venture.

Mail revenue declined by 1.2% to $94.4 million as a result of lower domestic mail and philatelic contributions. Logistics revenue, which includes revenue from Quantium Solutions, grew 166% to $49.2 million. Without the consolidation of revenue from Quantium Solutions, Logistics revenue showed a decline compared to the same quarter of last year. In Retail, revenue improved by 4.1% to $16.9 million on the back of higher contributions from financial services.

Higher rentals from Singapore Post Centre and the leasing of space at the repurposed post office buildings contributed to a 22.2% increase in rental and property-related income at $10.2 million. Miscellaneous income increased as a result of the amortisation of deferred gains on intellectual property rights relating to the collaboration with Postea, Inc.

Total expenses for the group increased 12.2% to $100.2 million, due mainly to additional costs with the consolidation of Quantium Solutions. Excluding Quantium Solutions, total expenses would have declined 2.4%. As a result of the Group’s larger staff base, labour and related expenses increased, offsetting the benefits from the Jobs Credit Scheme. Volume- related expenses rose as higher costs of sales offset the decline in traffic expenses. Finance expenses declined as a result of lower interest rates.

Net cash from operating activities amounted to $137.4 million in the nine-month period, compared to $133.8 million in the same period last year.

[millionairemind]

March 23, 2010, 2.40 pm (Singapore time)

S&P's revises SingPost outlook to negative

By ANGELA TAN

SINGAPORE - Standard & Poor's Ratings Services (S&P's) revised the rating outlook on Singapore Post Ltd (SingPost) to negative from stable.

At the same time, S&P's affirmed its 'AA-' long-term corporate credit rating and 'axAAA' Asean regional scale rating on SingPost.

It also assigned its 'AA-' issue rating and 'axAAA' Asean regional scale rating to the company's proposed issue of Singapore dollar (S$) 200 million (US$143 million) fixed rate notes due 2020.

'We revised the outlook to negative to reflect SingPost's weaker credit protection metrics for the next two years and uncertainty over the outcome of the company's M&A activities,' said S&P's credit analyst Andrew Wong.

'The affirmed ratings reflect the company's very strong market position in its core domestic and international mail business, high operating efficiency, and solid cash flow measures.'

S&P's believes SingPost has an excellent business risk profile. The company maintains a very strong market position in the domestic and international mail business in Singapore, despite the opening-up of the basic domestic and international letter and postcard business to competition in April 2007. It has a significant share of the domestic delivery mail market, which contributed about 65 per cent to total revenues and 65 per cent to total operating profit for the nine months ended Dec 31, 2009.

S&P's expects SingPost to maintain the last-mile access of its distribution network.

It said SingPost's financial risk profile is modest and underpinned by solid cash flow measures. The company's leverage will increase with the proposed notes issuance.

S&P's expects the global economic recovery to have a positive impact on demand for mail services.

'SingPost has geographical concentration and somewhat limited growth opportunities in its main postal services business. This may lead to aggressive initiatives to enhance shareholders' returns, such as entry into more competitive and lower-margin business segments including hybrid mail and logistics. We believe that such initiatives may result in the company taking longer than expected to repair its credit metrics,' said Mr Wong.

In line with the industry trend, S&P's expects operating cost pressures to continue, especially because of Singapore's reclassification as a 'New Target Country' by the Universal Postal Union that will increase net terminal dues payments for international mailing.

[millionairemind]

March 23, 2010, 3.41 pm (Singapore time)

SingPost plans $200m notes issue to fund growth

By ANGELA TAN

SINGAPORE - Singapore Post Limited (SingPost) said on Tuesday that it is proposing to issue up to $200 million (US$143 million) worth of fixed rate notes due 2020.

DBS Bank Ltd and UBS AG, Singapore Branch have been appointed as the joint lead managers for the proposed notes issue.

The notes will be issued in the denomination of $250,000 and will have a tenor of 10 years from their date of issue.

SingPost expects to use the net proceeds to finance new investments as part of its growth strategy as well as for capital expenditure and working capital requirements

[iam802]

It will be interesting to observe what they will be using these $ for.

[LenaHuat]

Hi iam802
No further news? I remember it called a tender for the sale of Singapore Post Centre but it was subsequently aborted. That piece of property is a goldmine.

[iam802]

Hi iam802
No further news? I remember it called a tender for the sale of Singapore Post Centre but it was subsequently aborted. That piece of property is a goldmine.

Hi L,

I am a slacker. Not monitoring SingPost

Perhaps SingPost's shareholders will be able to provide an update or insight.

[LenaHuat]

Hi iam802
Thank QQ. I'll post should I read something abt it.

[kennynah]

SINGAPORE - Singapore Post Limited (SingPost) said on Tuesday that it is proposing to issue up to $200 million (US$143 million) worth of fixed rate notes due 2020.

i doubt it could be sufficient even to buy one airplane for Singapore Post Express (maybe call it Singpoexpress)...fight with fedex and ups...

so, my guess is that they are using it to maintain their business operations.... open up more "pawn" services... express cash lending... bill collection services for telcos, IRAS, govt agencies....and generally operational expenses...

i wont give them a dime...