Singapore Post

[KopiKat]

I have yet to dig further into the report. In brief, the mail revenue is transitioning well from paper mails to package mails, which resulted a overall increase in mail revenue ex new acquisition.

Singapore Post posts 14.6% fall in Q4 net to $26.1 mil

Singapore Post says it achieved a net profit of $26.1 million for the fourth quarter ended 31 March 2013, down 14.6% from a year ago. Earnings per share fell to 1.185 cents. Full year net profit declined 3.9% to $136.5 million.

Overall revenue grew 25.0% to $182.4 million in Q4, with the consolidation of newly acquired subsidiaries as well as contributions from e-commerce related activities across all business segments. Contributions from new subsidiaries included Novation Solutions which was acquired in May 2012, General Storage Company in January 2013, and Famous Holdings in February 2013. Full year revenue grew 13.9% to $658.8 million.

http://www.theedgesingapore.com/the-dail...1-mil.html

My initial reaction was, It looks bad! Just looking at EPS vs DPS, the payout is 97%! If this goes on, they'll have to cut the DPS! On closer examination, the main culprit is due to,

Write-off of intellectual property rights = $5,798,000

Add this non-cash item back and we should get very similar EPS as last year. But, yes, it's still a valid concern for shareholders as Revenue is +13.9%, meaning Profit Margins continue to be eroded.

One item which'll likely help with the bottomline from next Q would be the expiry of their $300M 3.13% 10-Year Bond in Apr-13. That ought to lower their Interest Expenses by a couple of Mil$ / Q. Cash will of course be reduced by $300Mil next Q.