SBS Transit S61 has reported profit after tax of $17.9 million for the 3QFY2023 ended Sept 30, a 4.7% improvement from the same period last year.
This improvement of $0.8 million mainly resulted from higher interest income and was partially offset by lower operating profit, which declined by $0.2 million, or 1.1%, to $18.8 million in 3QFY2023.
SBS’s revenue of $387.8 million for the period saw a decline of $2.7 million or 0.7% from 3QFY2022.
This was mainly a result of its public transport services segment recording $4.1 million less compared to the year before period. In 3QFY2023, lower service fee rates for five extended negotiated bus contracts which came into effect from Sept 1, 2022 and lower fuel indexation were partially offset by higher rail ridership.
However, SBS’s other commercial services contributed an increased $1.4 million in revenue, mainly from an increase in advertising campaigns due to improved economic conditions as ridership returned to pre-Covid levels.
Operating costs during the quarter decreased by 2.5% y-o-y to $369.0 million from lower manpower costs arising from vacancy gaps, lower premises costs and lower diesel costs as prices decreased. This was partly offset by higher electricity costs as average electricity prices remained high.
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In its business update, SBS says that while it expects rail ridership to continue to improve, cost pressures remain from elevated energy prices and rising manpower costs.
In addition, the transport operator notes that the expiry of the Jurong West bus package will take effect from September next year.
Shares in SBS closed 2 cents or 0.79% up at $2.54 on Nov 10.
