Pos Malaysia incurs net loss in second quarter on lower revenue

PETALING JAYA: Pos Malaysia Bhd recorded a net loss of RM16.58mil for its second quarter ended Sept 30 from a net profit of RM18.83mil previously.

The net loss was due to the lower revenue registered from postal services and the international and logistics segments, coupled with the increase in the cost of sales and operating expenses as well as finance costs.

Meanwhile, revenue was marginally up 0.27% to RM588.73mil, mainly propped up by its courier segment. The courier service was backed by increased demand in e-commerce as well as online business customers.

As of Sept 30, Pos Malaysia had cash of RM292mil compared to RM327.74mil in the same period of the previous year.

For the six-month period, Pos Malaysia recorded a net loss of RM11.6mil from a net profit of RM54.75mil previously. Revenue was down 1.63% to RM1.18bil. The segments in which it did well were almost similar to its second quarter.

Looking ahead, Pos Malaysia told Bursa Malaysia that the robust growth in e-commerce continued to be the key revenue generator for its courier business segment. This is driven by its extensive last-mile network and infrastructure in the country.

Conversely, its postal services business segment is facing unprecedented challenges due to the accelerating decline in mail volumes and also lower retail transactions at its post offices.

This is a result of the increasing use of electronic substitutes for mail and the availability of online and mobile bill payment and remittance services.

Meanwhile, its aviation business segment’s prospects remain moderately upbeat in light of the expected passenger traffic growth of about 6% to 7% for 2018 and also higher air cargo volume growth.