SMRT speeds past analyst expectations with 75.5% profit jump in Q2

Thanks to higher ridership and average fares.

Mainboard-listed transport operator SMRT reported impressive results in 2Q15, beating analyst expectations with a 75.5% year-on-year jump in profit to $25.3m.

Its revenue jumped 6.0% year-on-year to $314m, as its Fare Business finally recorded an operating profit of $5.5m after two consecutive quarters of losses.

According to OCBC, the significant improvement in its Fare Business was mainly due to higher ridership and average fares as well as productivity gains and disciplined cost management.

“We expect energy costs to come down further on recent oil price decline and Kallang Wave Mall rental income to further improve Non-Fare Business profitability,” noted OCBC.