Capital A’s logistics arm Teleport has reported higher revenue in the third quarter amid higher tonnage and delivery parcels moved.

Capital A said in a statement on Thursday that Teleport’s revenue increased 52 percent year on year to MYR 287 million ($61.4 million), driven mainly by a 31 percent year on year increase in tonnage as well as a 113 percent growth year on year on delivery parcels moved.

Over 15.7 million parcels were delivered this quarter, bringing its year-to-date total to over 47 million parcels (FY2023 total was 30 million parcels).

Teleport delivered positive earnings before interest, taxes, depreciation, and amortization (EBITDA) of MYR 21.9 million ($4.8 million) in the quarter, up from MYR 3.4 million ($770,000) in the third quarter of 2023.

“Our third quarter results is evidenced by the acceleration in cargo and eCommerce parcel volumes that we have moved through The Teleport Network, delivering higher operating profit through increasing returns to scale,” Pete Chareonwongsak, Chief Executive Officer of Teleport.

According to him, this growth was delivered on the back of four key strategies: the firm continues to deepen relationships with existing customers by delivering greater market reach and improved service reliability from China to regions like Asean, Oceania, and the Middle East; while at the same time, continuing to pursue more direct volumes from China’s top eCommerce marketplaces through value-added end-to-end services.

Besides, he noted the firm continues to strengthen their operational capability and available capacity – with their freighter operations stabilized in early third quarter of 2024, combined with continuous efforts in growing The Teleport Network with more belly and freighter capacity on top of the 40 partner airlines, welcoming Terra Avia, a Boeing 747F operator, as one of its latest Air Partner to join The Teleport Network; and lastly, consistently optimizing our end-to-end costs, including our last mile operations, to maintain our asset-light, low-cost structure model.

“We are confident we will close 2024 on a high note, with an expected 50 percent year on year growth at approximately MYR 1 billion ($230 million) in total revenues — our strongest performance since inception seven years ago,” he added.

Meanwhile, Capital A Chief Executive Officer Tony Fernandes said that Teleport’s robust performance, driven by increased volume and operational efficiencies, is expected to continue.

“The successful resolution of freighter capacity issues and the expansion of our network will further strengthen our position in the logistics market,” he added.

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