ASEAN KEY DESTINATIONS
SBS Transit reports 69.5% rise in Q1 net profit
SINGAPORE: SBS Transit on Wednesday (May 11) announced a 69.5% rise in its first-quarter net profit to S$8.08 million.
The public transport operator said group operating profit for the three months ended Mar 31, 2016 was S$11 million, a 60.7 per cent increase from the same period a year ago. Group revenue climbed 6.6 per cent to S$263.5 million.
SBS Transit noted that revenue from the bus segment was 1.2 per cent higher at S$198.5m in the first quarter, due to higher daily ridership, which was partially offset by the fall in average fare following a fare reduction in December last year. Average daily ridership on buses rose by 3 per cent to 2.9 million passenger trips.
The bus segment saw a 133.9 per cent increase in operating profit, which came in at S$7.3 million for the first quarter of the year. SBS Transit attributed this to high revenue, lower fuel costs and lower depreciation, which offset higher staff costs, as well as higher repairs and maintenance costs.
Meanwhile, revenue from the train segment climbed 27.4 per cent to S$65 million. This was due to the increase in average daily ridership "following the commencement of revenue service of Downtown Line (DTL) 2, offset by lower average fare for North-East Line (NEL) and Light Rail Transit (LRT)" due to the fare reduction in December 2015.
SBS Transit said that average daily ridership for the DTL grew by 205.7 per cent to 206,000 passenger trips. Average daily ridership for NEL grew by 5.8 per cent to 557,000 passenger trips, while that for the LRT increased by 15.5 per cent to 110,000 passenger rides.
The train segment saw a 0.1 per cent drop in operating profit for the first quarter of 2016, coming in at S$3.7 million, due to higher staff costs from the build-up of staff for DTL, higher repairs and maintenance costs, as well as high premises costs.
Looking ahead, SBS Transit said revenue from its train business is expected to be higher with higher ridership from DTL 2. "Staff costs are expected to be higher as we review the compensation packages of staff. For the DTL, we will continue to build up the staff strength in preparation for DTL 3. Repairs and maintenance costs are also expected to be higher as more such works are carried out in the Rail segment," it said.
"Bus revenue will be affected with the gradual transition out of the Bulim and Loyang bus services," SBS Transit added.
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