Government reliefs lend SBS' bottom line a boost in Q3

PUBLIC transport operator SBS Transit on Wednesday posted a 3.3 per cent dip in post-tax profit to S$19.36 million for its third quarter ended Sept 30.

Without the Covid-19 government reliefs, it would have recorded an operating loss of S$4.04 million.

Revenue for the quarter fell 17 per cent to S$301.99 million, mainly due to lower service fees, lower rail ridership and lower advertising revenue.

Operating costs went down by S$56.1 million in Q3, due mainly to lower staff costs - thanks to government reliefs - lower fuel and electricity costs, and lower repairs and maintenance expenses.

For the nine-month period, after-tax profit fell 19.9 per cent to S$51.94 million, on the back of a 15.7 per cent drop in revenue to S$905.21 million.

This is because retail outlets and recreational facilities resumed operations and students returned to school daily only from late June. Telecommuting remained as default for most businesses during the period.

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Most bus services suspended during the circuit-breaker period resumed in June; the "night owl" and cross-border bus services, however, remain suspended until the end of the year.

Meanwhile, there has been a gradual pick-up of daily ridership on both the Downtown Line (DTL) and North East Line (NEL) trains after the circuit breaker was lifted. As at the end of September, DTL and NEL ridership were at 53 per cent and 60 per cent of the levels before the Covid-19 outbreak, respectively.

The recovery in its advertising and commercial space rental remains slow due to the poor economic outlook. SBS said that it continues to give rental rebates - beyond the property tax rebates from the government - to selected tenants badly hit by Covid-19.

The group said that it has more than S$250 million in available cash and undrawn bank facilities to support the continuity of the business, and will defer non-essential capital expenditure in the interests of prudent cash management.

It expects to continue benefiting from government reliefs mainly in the form of the Jobs Support Scheme, which will run into 2021, although at lower support levels.

SBS' shares closed flat at S$2.90 on Wednesday.