Pos Malaysia sinks deeper into the red in Q2

KUALA LUMPUR: Pos Malaysia Bhd sank deeper into the red in the second quarter due to impairment of property, plant and equipment at its postal division, as well as higher transportation and delivery cost incurred.

The company made a RM121.8mil loss in the three-month ended June 30 compared with RM19mil loss registered in the same quarter last year.

Revenue decreased to RM534mil from RM606mil a year ago, Pos Malaysia said in a filing today.

"The nationwide movement restriction continues to pressure our postal segment with a 20% decline in Mail business as a result of multiple operational limitations rising from stricter Standard Operating Procedure (SOP) for bulk mailers and financial institutions," it said.

"We foresee that the migration to digital alternatives and continuation of movement restrictions will continue to depress mail volumes further," it added.

As part of its on-going Mail rationalisation initiative, four more Mail Processing Centres (MPCs) are expected to be rationalised this year.

"Furthermore, we are revisiting our outsourcing models for Pos Rider (PR) and land transportation in order to manage costs better," it said.

"Pos Aviation continues to manage its operational costs to minimise losses," it added.