Customers are shifting to alternative online services.
Analysts at UOB KayHian observed a structural decline in Singapore Post's postal segment.
The shift in revenue mix towards lower-margin international business saw postal operating profit decline 4.2% YoY.
They noted that with the steeper decrease in domestic mail revenue at 8% YoY, the decline in the domestic mail has not eased just yet.
"Going forward, we expect mail operating margins to remain suppressed as domestic mail revenue continues to be impacted by e-statements implementation and the shift to alternative online services," the analysts said.
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