SINGAPORE (Aug 10): Transport operator SBS Transit has announced earnings of $12.7 million for the 2Q17 ended June, representing a 75.3% increase from its earnings of $7.2 million in 2Q16 on higher revenue.
This brings the group’s earnings for 1H17 up 49.6% to $22.9 million compared to $15.3 million in 1H16.
Group revenue over the quarter grew 7% to $287.8 million from $269 million previously due mainly to a 8.4% increase in revenue from the public transport services segment to $274.4 million as the group’s bus services registered higher contributions with the transition to the bus contracting model (BCM) as well as higher ridership from its rail services sub-segment.
For 2Q17, average daily ridership for the Downtown Line (DTL) grew by 14.1% to 242,000 passenger trips.
Average daily ridership (ADR) for the North-East Line and Light Rail Transit services over the quarter grew 1.4% to 566,000 passenger trips and 6.1% to 119,000 passenger trips, respectively, as compared to that of 2Q16.
However, the group’s other commercial services saw a revenue decline of 15.3% to $13.4 million over the quarter compared to $15.8 million in 2Q16, due mainly to lower advertising revenue.
Total operating costs increased 4.7% to $271.6 million from $259.4 million in 2Q16 due to higher staff costs, repairs and maintenance costs, premises costs and depreciation expense – which were offset in part by a decline in fuel and electricity costs as well as lower operating costs.
As at end June, SBS Transit had a net debt position of $247.8 million and a net gearing ratio of 57.1%, which is higher than that of 50.7% at end 2016.
Going forward, the group expects revenue from its public transport services to continue to grow on higher bus service revenue, which is expected to increase with a full-year contribution of revenue under the BCM. While the management also projects the group’s rail service revenue to grow with increased ridership, it believes this will be affected by the fare reduction policy effective from Dec 2016.
Revenue from the other commercial services segment is expected to be lower due to the loss of the Loyang and Bulim packages.
SBS Transit also says it anticipates operating costs and staff costs to continue increasing looking ahead, following salary adjustments and increments, while repairs and maintenance costs are expected to continue rising as more such works are carried out.
An interim dividend of 3.65 cents per ordinary share has been declared, which will be paid out to shareholders on Aug 25.
Shares of SBS Transit closed 1 cent higher at $2.59 on Thursday.
