SMRT profit for Q2 up 1.9% to S$25.7m
TODAY file photo
SINGAPORE — Transport operator SMRT Corp today (Oct 27) reported a 1.9 per cent increase in profit for the second quarter, as contributions from its non-fare segment helped offset the loss in its rail business.
For the three months ended September, net profit amounted to S$25.7 million, up from S$25.3 million in the same period a year earlier. Revenue grew by 4.7 per cent to S$328.8 million.
SMRT’s overall fare business posted an operating loss of S$1.4 million in the quarter.
Despite an increase in fare revenue and lower electricity tariffs, the main train operations suffered an operating loss of S$2.8 million. This was mainly due to “higher costs to support an expanded and ageing network, larger fleet, efforts to improve rail reliability as well as increased repairs and maintenance related expenditure,” said SMRT.
The LRT operations also chalked up a S$1.2 million operating loss mainly due to higher costs associated with the addition of new trains to the fleet.
The operator’s bus segment, however, posted an operating profit of S$2.6 million, on the back of higher revenue and lower diesel costs.
Profit from SMRT’s non-fare business increased by 21.7 per cent to S$33.1 million, boosted by its taxi, advertising and property rental segments.
The transport operator has been in the spotlight due to several Mass Rapid Transit (MRT) breakdowns.
On handling the current aging rail network, SMRT’s President and Group Chief Executive Desmond Kuek said: “We are fully committed to strengthening the level of service and reliability of our public transport services and meeting the network’s higher capacity needs and operational requirements. We remain focused on our multi-year programmes to renew and upgrade the ageing rail network and will continue to pursue business growth in line with our core competencies.”
SMRT shares closed flat at S$1.485 today ahead of the results announcement.
