SINGAPORE (Nov 9): SBS Transit posted $11.1 million in earnings for the 3Q ended Sept, representing a 42.1% increase from $7.8 million in the same period a year ago.
Group revenue grew 7.4% to $295 million from $274.7 million in 3Q16, with higher revenue from its Public Transport Services segment due to increased contributions from bus services as a result of the transition to the Bus Contracting Model (BCM) and higher ridership from rail services.
This was however offset in part by lower average rail fare from the fare reduction effective end 2016, as well as lower other operating income.
Over the quarter, average daily ridership for the Downtown Line (DTL) grew by 10.2% on-year to 258,000 passenger trips, while average daily ridership for the North-East Line and Light Rail Transit grew by 1.3% and 3.5% to 585,000 and 122,000 passenger trips, respectively.
Revenue from Other Commercial Services fell 7.7% to $14.5 million from $15.8 million in 3Q16 due to lower advertising and rental revenue. This led to a 16.4% decline in operating profit for the segment to $8.2 million compared to $9.8 million a year ago.
In line with the higher group revenue, operating profit grew 40.3% over the quarter to $14 million compared to $10 million in 3Q16.
As at end Sept, total equity for the group grew 4.1% to $435.3 million compared to that of end-Dec 2016, due to profits generated from operations and an increase in other reserves.
Cash and bank balances stood at $5.2 million, and the group was at a net debt position of $209.3 million after accounting for borrowings of $214.5 million.
For the nine months ended Sept, SBS Transit reported 47.1% higher earnings of $34.1 million compared to $23.2 million in 9M16.
Looking ahead, the group expects higher Public Transport Services and Rail Service revenue contributions, with a full year contribution of revenue under the BCM as well as higher ridership from the opening of DTL 3.
Revenue from Other Commercial Services is expected to be lower due mainly to the loss of Loyang and Bulim packages.
Meanwhile, the group expects its operating costs to grow with higher staff costs following salary adjustments and increments, while repairs, maintenance and premises costs are also expected to be higher with increased upkeeping costs and more DTL stations.
Shares in SBS Transit closed flat at $2.53 on Thursday.
