SBS Transit profits jumped 23.3% to $20.67m in Q1

Revenue from public transport services grew 6.8% to $334.4m.

SBS Transit started 2019 on a positive note as profits climbed 23.3% YoY to $20.6m in Q1 from $16.76m in the same period a year ago, thanks to higher contribution from public transport and other commercial services. Revenue also rose 6.9% YoY to $350.76m from $328.18m a year ago.

According to an announcement, revenue from public transport services inched up 6.8% to $334.4m boosted by higher fees earned with higher operated mileage from bus services and higher ridership and average fare from rail services. Operating profit also increased by $4.6m to $10.4m backed by higher revenue and lower premises costs.

“Bus service revenue is expected to be higher with the full year contribution from the Seletar and Bukit Merah Bus Packages which commenced operations from March 2018 and November 2018 respectively,” SBS Transit said.

Average daily ridership for the DTL climbed 10.4% YoY to 476,000 passenger trips. Meanwhile, average daily ridership for North-East Line and the Light Rail Transit grew by 3.2% YoY to 603,000 passenger trips and 10.4% YoY to 141,000 passenger trips respectively.

“Rail service revenue is expected to be higher with higher ridership as well as the fare adjustment of 4.3% effective from 29 December 2018,” the firm said. “Notwithstanding this, the rail business will continue to face challenges from operating and maintenance costs.”

For other commercial services, revenue grew 9.6% YoY to $16.3m bolstered by higher advertising revenue. Consequently, operating profit for Q1 increased 11.1% YoY to $11.3m.

The firm’s earnings per share also jumped 23% YoY to $0.663 from $0.539 a year ago.