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Profits Up 43% so Why is Singpost Still Raising Prices?

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Need to increase in postal rates?

We refer to the article “SingPost to raise postage rates from October” (Straits Times, Sep 3).

It states that “Local rates will increase between four cents and 20 cents while international rates will move up between five cents and 25 cents depending on the weight.

Mail volumes down, but mail revenue and profits up?

The revised rates come amid a challenging postal business environment, said group chief executive Dr Wolfgang Baier, where domestic mail volumes are on a decline for the second consecutive year and costs are escalating.”

Profits increased 2.9% to $145m? 

– According to SingPost’s 2013 annual report – its underlying net profit for FY2013/14 was $145 million, an increase of 2.9%.

Mail revenue grew by as much as 27%?

For its mail segment performance – domestic and international mail revenue grew 4 and 27% respectively – the mail segment performance had an operating profit of $142.6 million, a year-on-year % change of 1%.

43% increase in profits?

Its profits have increased by 43% from $101.3 million in FY2001/02 to FY2013/14 – a healthy increase of 3.03% per annum.

IDA approved increase?

As postal services is an essential service and a monopoly, and given the above financials, why did the Infocomm Development Authority of Singapore approve the increase in postal rates?

 

This article was written by SY Lee and Leong Sze Hian.

 

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