Singapore Post, which provides domestic and international postal services, on Friday reported a 13.6 percent drop in first-quarter profit due to lower domestic mail volumes, higher costs and increased competition.
Net profit fell to S$31.0 million in the quarter ended June 30 from S$35.9 million a year earlier.
Revenue for the quarter increased 6.2 percent to S$354.1 million, due to growth in the postal and logistics segments.
Singapore Post, commonly known as SingPost, said domestic mail revenue decreased as more and more organisations are moving to electronic statements.
However, its strong international mail growth drove postal revenue to a 9.3 percent increase, the company said in a statement.
"While the decline (in domestic mail revenue) is expected to continue, the group is focused on growing the international mail segment to mitigate the drop in contribution from domestic mail," the company said in a statement.
Logistics revenue, which contributes nearly half of group revenue, rose 6.1 percent, driven by increased eCommerce deliveries in Singapore and Australia.
Total expenses increased 11.1 percent in the first quarter, largely due to the increase in volume-related expenses.
SingPost declared an interim dividend of 0.50 cents per share.
Shares in the Singapore-listed company fell 0.7 percent to S$1.31 as of 0421 GMT in a broader market that was down 0.28 percent.
