KUALA LUMPUR: Pos Malaysia Bhd incurred a net loss of RM15.10 million in the first-quarter (Q1) ended June 30, 2019, from a net profit of RM4.98 million in the same period a year ago.
In an exchange filing today, the national postal services provider said the net loss incurred was due to higher cost of sales and operating expenses from one off charges of impairment.
It added the impairment involved in the goodwill of logistics segment of RM39.6 million and provision for onerous contract for the redelivery charges of leased aircraft of RM44.0 million incurred in the preceding quarter.
Its Q1 revenue dropped 2.97 per cent to RM572.95 million from RM590.46 million attributable to lower contribution from its postal services and aviation segments.
The company said its business outlook would remain challenging this year as the contraction in mail volume continues, as business enterprises were switching to electronic and digital channels, foregoing mail-based communications while Universal Service Obligations (USO) costs remained high.
The group’s courier business also expected to continue operating in a competitive environment, pressured by price and cost challenges.
Overall, the group was cautiously optimistic about some of its businesses, citing that its key revenue generators, namely Postal Services and Courier business, remain challenging due to the issues highlighted earlier.