SINGAPORE (May 11): Transport operator SBS Transit posted earnings of $10.2 mil for the 1Q ended March, 26.6% higher compared to the same quarter a year ago.
Revenue grew 7.6% to $283.4 million from $263.5 million previously, lifted mainly by higher contributions from the public transport services segment, especially bus services due to the transition to the bus contracting model (BCM) as well as higher ridership from rail services.
This was however partially offset by lower average rail fare from the fare reduction effective from Dec 30 last year.
Average daily ridership for the Downtown Line (DTL) grew 19.1% to 245,000 passenger trips, while average daily ridership for the North-East Line grew by 3.9% to 579,000 passenger trips.
Operating profit for the quarter grew 11.3% to $4 million as compared to just $0.4 million the year before.
Total operating costs grew 7.1% to $270.4 million on the back of higher staff costs, which grew 11.5% to $156 million from $139.9 million in the previous year, as did depreciation expense which increased 30.5% to $24.2 million from $18.6 million previously.
Other operating costs nonetheless came in 32.3% lower at $14.9 million as compared to $22 million the year before.
Looking ahead, SBS Transit says it expects higher revenue from its public transport services segment with higher ridership for rail services as well as a full year contribution of revenue under the BCM for its bus services.
However, it is anticipating lower revenue from other commercial services in the quarter ahead due to the loss of Loyang and Bulim packages.
With higher staff costs following recent salary adjustments and increments, as well as the build-up of staff strength in preparation for phase 3 of the DTL, the group is expecting to incur higher operating costs, as well as increased repairs and maintenance costs as more such works are carried out.
While SBS Transit has been awarded the Seletar Bus Package, this is not expected to have any impact on the group’s current financial year as it is expected to commence in March 2018.
Shares of SBS Transit closed 5 cents higher at $2.77 on Thursday.
