KUALA LUMPUR (Feb 25): Pos Malaysia Bhd today posted its largest quarterly net loss, which is also its sixth consecutive loss-making quarter, as the group was dragged by a goodwill impairment of RM90.6 million for Pos Logistics.

This led to its net loss ballooning to RM171.14 million for the three months ended Dec 31, 2019, over 13 times the RM13.02 million it posted in the corresponding quarter a year ago. Revenue came in 4% lower at RM559.58 million, from RM581.24 million.

This caused its net loss for the cumulative nine months ended Dec 31 to widen to RM215.58 million from RM24.62 million in the corresponding nine months a year ago, while revenue retreated to RM1.68 billion from RM1.76 billion. Besides the impairment, Pos Malaysia, which has changed its financial year end to Dec 31 from March 31, said the wider net loss was also due to an aircraft redelivery cost of RM28.6 million.

"The continuous double digit decline in mail volume with pre-revision postage rates was the biggest contributor to the overall loss from operations," it said in a statement.

Nevertheless, the group's chief executive officer Syed Md Najib expects Pos Malaysia's finances to improve, as he pointed to the recent announcement on the revised postage rates, which he said should contribute towards that, as it would better support the group's increasing costs in serving its Universal Service Obligations.

Pos Malaysia is also set to embrace digitalisation to boost efficiency, in order to take on more courier volume and enhance customer experience, as it caters to the booming e-commerce market, he said.

“Our transformation strategy requires investments across our business value chain to further provide a much better customer experience, to stay in the forefront of our competitors,” Syed Md Najib added.

Meanwhile, Pos Malaysia said the group is focusing its efforts on revenue growth, while embarking on operational efficiencies to improve its cost structure in the long run. It is also investing in its retail and core systems including its track and trace functionality, to improve customer experience as it scales up its courier business.

"On top of the modernisation of its ICT architecture and security, investments in parcel sorting automation will further reduce processing costs, whilst increasing efficiency, capacity and speed. Its two main subsidiaries are refocusing and rationalising non-core segments, while expanding its product and service portfolios," the statement further read.

Pos Malaysia shares closed one sen lower at RM1.33 today, giving it a market capitalisation of RM1.04 billion. The stock has sunk near 39% in the past one year.