SMRT’s revenue surges 10% to $268m in 3Q12

The group stays strong despite the MRT disruption that caused a stir last year.

According to a financial statement, the group’s revenue increased by 10.0% or $24.4 million to $268.2 million due mainly to higher MRT and Bus ridership, contribution from Circle Line, higher taxi rental revenue, and higher rental and advertising revenue.

Group operating profit was $5.7 million lower at $46.4 million. This was due mainly to higher total
operating expenses, partially offset by higher revenue and other operating income.

SMRT Executive Director and CEO, Tan Ek Kia said: “The operating performance in the quarter was affected by the higher energy costs and higher headcount mainly attributed to the operation of Circle Line and increased train runs. Operationally, our focus remains that of regaining commuters’ confidence in the reliability of the system following the service disruptions in December.”

Revenue from Train operations increased by $12.2 million to $144.9 million as a result of higher ridership. Operating profit decreased by $4.3 million to $25.7 million due mainly to higher energy costs and staff and related expenses and higher depreciation. Staff and related expenses were higher due mainly to increased headcount for the operation of Circle Line and increased train runs, impact of salary adjustments and higher CPF contributions. In addition, repairs and maintenance costs were higher in 3QFY12 as a result of more scheduled repairs and maintenance.

Expenses arising from the recent MRT disruptions incurred this quarter were not significant. Revenue from Bus operations was 3.3% higher at $54.4 million due mainly to higher ridership. Higher operating loss of $1.7 million was due mainly to higher diesel cost and staff and related expenses, partially offset by higher revenue.

Taxi rental revenue increased by 28.4% or $6.5 million to $29.6 million, due mainly to higher rental revenue from a larger average hired out fleet. Operating profit increased by $0.5 million as a result of higher revenue, partially offset by higher depreciation and insurance cost.

Rental revenue from commercial spaces grew 11.0% to $20.7 million as a result of increased space following the redevelopment of commercial spaces at various MRT stations. Consequently, operating profit increased by 8.6% to $15.6 million.

Advertising revenue increased by $2.0 million to $8.5 million. Operating profits also increased by $0.8 million to $5.6 million. The higher revenue is partially offset by higher depreciation and other operating expenses.

Revenue and operating profit for Engineering and Other Services in 3QFY12 decreased by $0.4 million or 5.1% and $2.2 million or 75.7% respectively. This was due mainly to the absence of receipts from Nakheel following the termination of Palm Jumeirah operation and maintenance contract in August 2010.