KUALA LUMPUR (Feb 26): Pos Malaysia Bhd’s net profit slid 72% to RM9.48 million year on year for the third quarter ended Dec 31, 2017 (3QFY18) against RM33.41 million last year. The postal group was hit by lower revenue coupled with higher operational costs in 3QFY18.

Earnings per share shrank to 1.21 sen from 4.27 sen per share in 3QFY17. Revenue was lower by 2% to RM620.72 million compared with RM635.72 million a year ago.

In a Bursa filing this evening, Pos Malaysia said its postal services segment registered lower revenue of RM170.1 million compared with RM187.1 million last year due to the decline in traditional mail volume coupled with lower transactions in retail segment from bill payments, insurance commission as well as reduction in commission rate of unit trust.

Revenue for the international segment also dropped due to lower volume in transhipment, it said.

The courier segment, however, recorded higher revenue of RM198.3 million compared with RM188.6 million last year, driven mainly by increased demand in e-commerce as well as online business customers.

Its logistics segment too increased by RM19.5 million to RM112.86 million for the quarter under review mainly contributed by project logistics in Pengerang.

For its cumulative nine months (9MFY18), the group’s net profit fell 11% to RM64.22 million versus RM71.99 million last year. Revenue for the nine months however was higher by 26% at RM1.82 million compared with RM1.45 million a year ago.

On its prospects, the group said it remains positive as the business continues to be driven by strong e-commerce growth in Malaysia and the South East Asia region.

“We are optimistic that the establishment of the Digital Free Trade Zone (DFTZ) will drive cross-border e-Commerce volume underpinned by sustained consumer spending growth momentum. This is expected to be positive for the prospects of our e-Commerce related businesses, namely courier, eFulfilment, air cargo logistics and international mail business.

“On the digital front, we will be introducing services that are relevant to our customers. Convenience and reliability demanded by the market affords us the opportunity to be innovative in providing services that suit the changing lifestyle needs of the Malaysian public, and tourists alike,” it said.

The group is also progressively digitalising its traditional postal services onto online and mobile platforms to expand its market segments as well as to offer superior customer experiences and convenience in line with the digital lifestyle trends.

“These initiatives are also expected to improve the sustainability of our postal services operations in the digital era,” the group said.

Pos Malaysia’s shares closed down six sen or 1.19% to RM4.99, bringing a market capitalisation of RM3.87 billion.