Pos Malaysia posts net loss for fourth consecutive quarter

PETALING JAYA: Pos Malaysia Bhd continued to be in the red for three months ended June 30, 2019 with a net loss of RM15.1 million compared with a net profit of RM4.98 million in the same quarter a year ago, due to lower revenue from postal services and aviation along with increased sales and operating cost of RM7.2 million.

Revenue for the quarter under review contracted 3% to RM572.95 million from RM590.46.

Its financial year end has been changed to Dec 31 from March 31.

Pos Malaysia said in a filing with the stock exchange that its postal services segment reported a 14.2% drop in revenue to RM147.5 million from RM171.9 million, attributed to electronic substitution.

The aviation segment’s revenue dropped RM11.2 million, mainly contributed by lower tonnage of cargo handled.

However, its courier business recorded a 9.7% growth in revenue with RM224.5 million against RM204.5 million in the previous year contributed by the growth in e-commerce sector.

International revenue slipped slightly by RM1.7 million on the back of lower volume in transhipment business, while logistic segment’s revenue increased RM500,000 mainly from haulage business from a new project.

Looking ahead, Pos Malaysia expects its business outlook remains challenging, given the continued contraction in mail volume as people turn to electronic means, while the courier business continues to operate in a competitive environment with price and cost pressures despite the revenue growth from the segment.

“Overall, although the group is cautiously optimistic about some of its businesses, Pos Malaysia’s key revenue generators, namely postal services and courier business, remain challenging due to the issues highlighted earlier.”

“Firm steps are being taken to address these issues but the outcome of these steps will only be evident in the medium term.”