KUALA LUMPUR (June 15): Pos Malaysia Bhd posted a lower net loss of RM49.2 million for its first quarter ended March 31, 2020, down by more than half from the RM141.13 million it achieved in the corresponding three months a year ago.

The group, which had changed its financial year-end to Dec 31 from March 31, provided the comparative figures in a statement today. Quarterly revenue came in at RM558.53 million, down 6.1% from RM594.68 million previously.

During the loss-making quarter — its seventh consecutive quarter in the red — Pos Malaysia has noticeably reduced its cost of sales and operating expense to RM573.74 million, from RM650.12 million in the previous immediate quarter ended Dec 31, 2019 and RM676.23 million in the three months ended March 31, 2019.

However its three core operations — postal, logistics and aviation — remained in the red at the pre-tax level.

It was previously reported that the group is working on its costs by rationalising its post office network, divesting its non-core businesses, and using a different payment scheme — which is now under trial run — for its delivery fleet.

Segment-wise, international and mail businesses dragged the postal segment. Its logistics segment suffered losses in the haulage business, while aircraft maintenance and engineering services led to a loss in its aviation segment.

The only profitable segment was its “others” segment, which consists mainly of printing and insertion, digital certificates, and Ar Rahnu (Islamic pawn broking). “Profit before tax was mainly contributed by Ar Rahnu and digital certificates business,” it said.

In terms of revenue, postal revenue — which now combines both postal segment and courier segment — was stable and contributed 69.99% of the group’s total, following an upward revision in postal rate that was made effective in February. The courier segment also saw parcel volume rise by 6.7% on-year, it said.

Revenue in logistics and aviation segments were also stable, contributing 13.51% and 11.24% respectively.

The Covid-19 pandemic, said Pos Malaysia, stalled its mail volume growth in March. It also resulted in fewer retail transactions in post offices, and lower cross-border transshipment tonnage.

On prospects, group chief executive officer Syed Md Najib said Pos Malaysia is banking on e-commerce to be a growth segment, moving forward.

It also expects the revised postage rates to increase its annual revenue by RM100 million to RM150 million.

According to Pos Malaysia, its average daily parcel volume recorded in April was about 590,000, up 69% from March and 66% more than what it recorded in February. “The group expects this trend to continue as more consumers adapt online shopping as the new norm,” it said, adding it aims to have 40 Pusat Pos Laju by year end, from 25 now.

Shares of the postage group fell 9 sen or 8.65% to close at 95 sen today, valuing it at RM743.64 million.