I read in The Edge today SingPost’s CEO for their postal service mentioning that their mail business after their expansion into logistic business will make up 50% of revenue.

Its strange that the CEO chooses to focus on the revenue makeup rather than the profit make up.

Take a look at my write-up some time ago and look at the difference in margins and return on assets between the logistics and mail. Its huge.

Ultimately we are paid in net income so if mail revenue is 50% of Singpost, by then the profits and dividend paying capability is much less.