SINGAPORE (Feb 9): SBS Transit has reported earnings of $31.4 million for FY16, an 87.6% improvement over the earnings of $16.7 million for FY15.
For the full year to December, revenue rose 7.3% to $1.1 billion on the back of higher revenue from its public transport services and other commercial services business segment.
The increase in its public transport services revenue arose from the higher rail ridership after the opening of Downtown Line 2, which was mitigated by the fare reduction in December 2015 at its Northeast Line and Light Rail Transit.
Average daily ridership for DTL rose by 190.2% to 220,000 passenger trips, while that for NEL rose 5.2% to 565,000 passenger trips, and that for LRT rose by 15.3% to 114,000 passenger trips.
The group also noted that in September 2016, the provision of bus services were made under the new Bus Contracting Model (BCM), so its full-year results reflected eight months under the fare revenue model and four months under the BCM.
Revenue from its other commercial services also rose 4.4% to $64 million, as new stations were added and boosted advertising revenue.
Operating profit was $41.8 million, 66% higher than the $25.2 million in FY15, owing to higher revenue and lower fuel and electricity costs.
SBS Transit says it expects public transport services revenue to be higher in the coming year, with the full year contribution under the BCM and higher ridership at its rail services, though it may be offset by the fare reduction effective from December 2016.
Revenue from other commercial services would remain stable, but operating costs would be higher from salary adjustments and increased staff headcount for DTL3. Repairs and maintenance costs are also expected to remain high.
The group declared a final dividend of 2.7 cents for the full year period.
Shares in SBS closed at $2.30 on Thursday.
