By: La Papillion Singpost posted its 3Q results today. In summary, Q3 revenue grew 9.2%, net profit rose 7.8% and a dividend of 1.25 cts per share is declared, which is the norm. 3Q is traditionally the busier quarter for singpost, so the increase in revenue is nothing to be extremely proud of. Business as usual I suppose. What is a little worrying is that despite the rise in revenue in a variety of sectors, the cost increment is higher, hence the margins got eroded slightly by less than 1% comparing between FY07/08 3Q and FY06/07 3Q. A huge part of the increase in expenses comes from volume-related costs - comprising mainly of traffic and mail outsourcing expenses. Not too sure what is meant by that, but it's the greatest increment in expenses. Do singpost outsource mail? Maybe they do... Operating expenses are broken into 3 parts: 1. Labour and related cost: up 10.6% 2. Volume related cost: up 16.5% 3. Selling, admin, depreciation and others: up 5.8% It's quite encouraging to see that for the past 9 mths, the total revenue had reached 81% of the total revenue earned in FY06/07. If Singpost maintained the revenue earned for this quarter into the next quarter, the total revenue would have exceeded Fy06/07. Having briefly looked through the annual report for Singpost in 06/07, I discovered a few things: Read more...