Singapore Post’s (SingPost) third quarter results for 2016 demonstrated a net profit drop of 28.5 per cent.
According to the postal service, this was due to operating losses in the US eCommerce business, as well as regional eCommerce logistics hub costs, and a fall in domestic mail volumes.
Net profit attributable to equity holders fell by 27.9 per cent to S$31.4 million
The company said that because of the poor performance of TradeGlobal, an eCommerce business it bought in 2015, it is of the view that there is “risk of significant impairment to TradeGlobal’s carrying value.”
The company did see however a revenue increase of 16.8 per cent to S$369.4 million for the third quarter of FY2016/2017.
“We are building out our capabilities, broadening and deepening our eCommerce logistics network, to secure the future of SingPost,” said Mr Mervyn Lim, covering group chief executive officer. “There are challenges along the journey and it is going to take a number of years for our investments to contribute.”
The board at SingPost will also be reviewing all of the business’ investments – which will be assessed, if there are impairments, based on results of the full financial hear ending 31 March 2017.