SBS Transit has reported a profit after tax of $18.2 million for the 3QFY2024 ended Sept 30, 1.7% higher y-o-y from lower tax expenses.
This brings the company’s 9MFY2024 profit after tax to $51.9 million, 1.5% lower y-o-y, as lower operating profit more than offset lower tax expenses.
3QFY2024 revenue rose by 2.1% y-o-y to $396.1 million as public transport services and other commercial services revenues rose. Public transport services saw revenue growth mainly from higher average fares and ridership for its rail operations. The higher revenue also includes higher other operating income but was partly offset by lower service fees for buses due to lower mileage and fuel indexation. Other commercial services revenue rose mainly from higher income from more digital screens for advertisements in 2024.
However, operating profit dipped by 0.1% y-o-y to $18.8 million as operating costs rose by 2.3% y-o-y to $377.3 million. Ebitda for the quarter fell by 5.5% y-o-y to $40.1 million.
9MFY2024 revenue rose by 4% y-o-y to $1.18 billion mainly from higher average fares and ridership for rail, high service fees for buses mainly from annual indexation in public transport services while other commercial services rose due mainly to higher rental revenue.
At the same time, operating profit fell by 2.6% y-o-y to $53.52 million on higher operating costs, which increased by 4.3% y-o-y to $1.12 billion from higher costs for repairs and maintenance, premises, higher staff costs, advertising concession fees incurred in 2024 and a higher rail licence charge. 9MFY2024 ebitda fell by 6.2% y-o-y to $118.1 million.
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In the 3QFY2042, the average daily ridership for the North-East Line (NEL) rose by 1.4% y-o-y and 4.8% q-o-q to 602,161. The average daily ridership for the Downtown Line (DTL) rose by 4% y-o-y and 6.7% q-o-q to 482,818.
The company’s Jurong West bus package was handed over to the new operator in September this year. The Soon Lee Bus Depot was acquired by the Land Transport Authority (LTA) at net book value as part of the handover.
Looking ahead, the company believes its revenue for rail operations is expected to increase from an increase in fares and ridership. The Public Transport Council announced that it was increasing fares by 6% with effect from Dec 28, 2024. Bus operations revenue, however, is expected to decrease upon the handover of the Jurong West bus package on Aug 31, 2024. SBS also predicts that the tight labour market for bus captains will remain a challenge. Meanwhile, it expects cost increases to moderate with lower inflation and energy prices.
Shares in SBS Transit closed flat at $2.47 on Nov 8.
