SINGAPORE (Nov 8): SBS Transit reported a 77.5% rise in 3Q18 earnings to $19.7 million from $11.1 million in 3Q17.
This brings 9M18 earnings to $55.9 million, 64.2% higher than $34.1 million in 9M17.
Revenue for the quarter was 19.1% higher at $351.4 million from $295.0 million a year ago, mainly due to increased revenue contribution from the group’s Public Transport Services segment.
Revenue from the Public Transport Services segment saw a 20.5% y-o-y increase to $337.9 million, due mainly to higher fees earned with higher operated mileage following the commencement of the Seletar Bus Package in March and higher ridership from rail services with the commencement of Downtown Line (DTL) 3 from Oct 2017, but partially offset by lower average rail fare from the fare reduction effective Dec 29, 2017.
The overall increase in revenue was partially offset by a 7.7% y-o-y decrease in revenue from the group’s Other Commercial Services segment to $13.4 million, due mainly to lower advertising revenue.
Total operating costs increased by 16.5% to $327.4 million, compared to $281.0 million last year.
Hence, operating profit came in at $24.0 million, 70.9% higher than $14.0 million in the previous year.
As at end-Sept, the group’s cash and cash equivalents stood at $8.11 million.
On the outlook, the group expects its Public Transport Services segment to see an increase in revenue, as it predicts higher contribution from its bus service and rail service. Meanwhile, operating costs are expected to increase.
Shares in SBS Transit closed 1 cent higher at $2.63 on Thursday.
