SingPost's e-commerce losses narrow to $4.2m

Its turnaround plan for TradeGlobal should help in easing losses.

SingPost's e-commerce bane got an encouraging improvement in the past quarter as operating losses eased to $4.2m from $15m during the last period.

According to UOB KayHian analyst Thai Wei Ying, SingPost's losses are expected to continue narrowing as management executes a turnaround plan for TradeGlobal.

"More specifically, the group is focussing on warehouse automation, which we believe will help ease labour costs especially during the seasonal peak period in November-December," the analyst said.

Additionally, the analyst noted that TradeGlobal has acquired a few new customers since losing two key customers in 3Q17.

"Meanwhile, Jagged Peak continued to perform above management’s expectations with higher earnings as it added new customers and processed increased volumes," Thai stated.