SBS Transit has reported earnings of $69.1 million for the FY2023 ended Dec 31, 2023, 1.5% higher y-o-y. The public transport operator reported a 2.7% y-o-y growth in 2HFY2023 earnings of $34.3 million.
Earnings per share (EPS) for the FY2023 stood at 22.15 cents.
Group revenue for the year rose by 0.8% y-o-y to $1.53 billion due mainly to the higher number of passengers and higher advertising income.
However, full-year operating profit fell by 4.1% y-o-y to $76.7 million as group operating costs rose from higher electricity and manpower costs.
“As Singapore returned to pre-pandemic normalcy, we have seen a steady recovery of ridership. We kept focus on strengthening our operational excellence, enhancing customer experience and sustainability efforts,” says Jeffrey Sim, Group CEO of SBS Transit.
A final dividend of 5.58 cents has been recommended, bringing the total dividend per share for the FY2023 to 11.16 cents, higher than the 10.90 cents in FY2022. The final dividend will be payable on May 14.
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As at Dec 31, 2023, cash and cash equivalents stood at $372.0 million.
Looking ahead, the group expects rail fare revenue to increase from higher ridership and the fare increase from Dec 23, 2023. Revenue from bus operations will, however, drop as the Jurong West bus package expires. It will be handed to the new operator from Sept 1.
Operating costs also remain a challenge due to cost uncertainties arising from inflation, tight labour market and elevated electricity prices, says the group.
Shares in SBS closed 2 cents higher or 0.75% up at $2.69 on Feb 27.
