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SMRT Q1 FY17 profit down 22.9% as train losses deepen
DEEPENING losses from train operations and engineering services drove net profit down at transport operator SMRT Corporation for the first quarter of financial year 2017.
In its first quarterly results since the announcement of transitioning to the new rail financing framework and state investor Temasek Holdings' bid to take it private, SMRT reported on Monday after trading closed that net profit for the three months ended June 30 was at S$15.5 million. This is 22.9 per cent lower than that of a year ago.
Total revenue fell to S$313.9 million, a 2 per cent drop at S$320.3 million from a year ago.
Earnings per share thus dropped to 1.02 Singapore cents, from 1.32 cents in Q1 FY16.
Losses from train operations in particular weighed on SMRT's results.
This segment saw its losses widen by 110.1 per cent to hit a loss of S$7.7 million. The loss was at S$3.7 million the same period a year ago.
Losses from LRT operations remained similar at about S$1.6 million.
These two segments account for rail operations. This section saw a total operating loss of S$9.4 million in Q1 FY17, some 76.8 per cent deeper from a year ago.
Engineering services incurred losses more than four times than that seen a year ago. It lost S$2.7 million, or 439.8 per cent deeper than Q1 FY16.
Buses chalked up a thinner operating profit of S$0.2 million. This is 86.3 per cent lower than the same period a year ago.
Taxis, despite performing "better than industry average" according to chief executive officer Desmond Kuek, saw operating profits of S$4.5 million, a 17.9 per cent drop from Q1 FY16.
Rental and advertising recorded an operating profit of S$20.6 million and S$4.9 million respectively in Q1 FY17, a decrease of 2.4 per cent and an increase of 0.3 per cent respectively compared to Q1 FY2016.
Other services increased 164.2 per cent to S$1.4 million, mainly due to higher contribution from charter services and external fleet maintenance.
SMRT shares closed flat on Monday at S$1.63 apiece.