SBS Transit Q1 profit slips 2.2% to S$15.6 million despite ridership gains

[SINGAPORE] Transport operator SBS Transit on Friday (May 8) posted a 2.2 per cent decline in net profit to S$15.6 million, from S$15.9 million in the year-ago period.

The group attributed the dip in profit to lower interest income.

Revenue stood at S$391.8 million, a 4.8 per cent increase from S$373.8 million in the previous year.

The increase in revenue was driven by higher service fees for buses, the result of higher fuel indexation and annual indexation.

Higher rail fare revenue, driven by a higher average fare and ridership numbers, also contributed to the rise in overall revenue.

Daily ridership numbers also rose. The North-East Line clocked a 2.7 per cent increase in average daily ridership to 610,814; the Downtown Line’s average daily ridership numbers rose 2.1 per cent to 474,846.

SBS Transit introduced three new two-car Light Rail Vehicles to the Sengkang West Loop under its expansion plan for Sengkang-Punggol LRT. By 2028, 25 such vehicles will be deployed in the network.

Operating costs, on the other hand, grew 4.9 per cent to S$374 million, from S$356.5 million in the year-ago period.

The increase came from higher fuel and electricity costs, mainly arising from higher average prices and higher staff costs.

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The group’s operating profit increased 2.9 per cent to S$17.8 million, from S$17.3 million in the year-ago period.

Shares of SBS Transit fell 0.3 per cent or S$0.01 to S$3.60 on Friday, prior to the announcement.