Pos Malaysia’s 1Q earnings jumps to RM38.26m, boost from tariff hike

KUALA LUMPUR: POS MALAYSIA BHD []
posted net profit of RM38.26 million in the first quarter ended March
31, 2011, a significant increase from only RM1.62 million a year ago.
The postal services company said on Tuesday, May 24 the earnings
growth was underpinned by the domestic tariff increase which came into
effect on July 1, 2010.
The group’s growth of almost 121% in profit from operations at
RM50.86 million (2010: RM23.07 million) for the period ended March 31,
2011 was due to the tariff increase and benefits realised from
transformation initiatives.
“This is supported by revenue of RM304.5 million; a substantial
increase of 31.8% from RM231.1 million in the preceding year,” it said.
Its earnings per share were 7.12 sen versus 0.3 sen a year ago.
Pos Malaysia also said its profit from operation of RM50.86 million, compared to the RM26 million recorded in 4Q2010.
“An increase in profit by RM24.9 million or almost 96% was due to the increase in revenue by RM27.2 million,” it said.
The group’s higher profit before taxation by RM38.7 million was due
to higher operating profit but partially mitigated by the higher
impairment provision of the investment in TRANSMILE GROUP BHD [] by RM3.4 million and lower other operating income of RM4.3 million.
“In addition, during preceding quarter last year, the group provided
one-off impairment provision relating to capital expenditure incurred
for the postal counter system of RM22.3 million,” it said.