Pos Malaysia Q3 earnings tumbles almost 72%

PETALING JAYA: Pos Malaysia Bhd saw its net profit fall 71.6% to RM9.47 million for the third quarter ended Dec 31, 2017, from RM33.41 million in the previous corresponding period on lower revenue and higher operational costs.
Revenue for the quarter declined 2.36% to RM620.7 million, compared with RM635.7 million in the same period in 2016.
For the nine-month period, its net profit declined 10.8% to RM64.22 million, from RM72 million a year ago, while revenue was up 26% to RM1.82 billion, from RM1.45 billion previously.
In a statement, Pos Malaysia said the increase in revenue was due to the inclusion of the newly acquired logistics business coupled with strong growth in its courier business.
Despite the challenging operating conditions, the group said it will continue to press ahead with its initiatives to become the premier e-commerce fulfilment and logistics services provider domestically and over time, regionally.
It added that the above 5% forecasted economic growth for 2018 and the ongoing developments with respect to the Digital Free Trade Zone (DFTZ) will continue to drive the rapid expansion of e-commerce domestically, and regionally.
“These will underpin the group’s prospects going forward. To this end, we continue to invest in key technology platforms required for us to consolidate our leadership position in this market. As the sole provider of postal services in the nation, we are progressively digitalising our traditional postal services onto online and mobile platforms to expand our market segments as well as to offer superior customer experiences and convenience in line with the digital lifestyle trends. These modernization initiatives are also expected to improve the sustainability of our postal services operations in the digital era," it added.
Pos Malaysia’s share price fell six sen or 1.19% to RM4.99 with 122,100 shares done.