SINGAPORE (May 10): SBS Transit posted earnings of $16.8 million for the 1Q ended March, some 63.7% higher than earnings of $10.2 million a year ago.
1Q18 revenue grew 15.8% to $328.2 million, outpacing a 13.8% increase in total operating costs to $307.6 million.
As a results, group operating profit jumped 57.9% to $20.6 million in 1Q18, from $13.0 million a year ago.
Revenue from Public Transport Services rose 16.3% to $313.3 million in 1Q18. This was mainly due to higher fees earned under the Bus Contracting Model (BCM) with higher operated mileage, higher ridership from rail services with the commencement of Downtown Line (DTL) 3 from October last year, and higher other operating income.
Revenue from Other Commercial Services climbed 6.6% to $14.9 million during the quarter, due mainly to higher advertising revenue following the commencement of DTL 3.
As at end March, cash and cash equivalents stood at $6.0 million.
Looking ahead, SBS Transit guides that revenue from Public Transport Services is expected to be higher with commencement of the Seletar Bus Package from March, and full year revenue contribution from DTL 3.
Revenue from Other Commercial Services is expected to be maintained.
Meanwhile, operating costs is expected to be higher with higher staff costs following salary adjustments, increments, and the build-up of staff for the Seletar Bus Package.
Shares of SBS Transit closed 4 cents higher, or up 1.6%, at $2.58 on Thursday.
