SBS Transit Q3 net profit up 23.4% on higher revenue

PUBLIC transport operator SBS Transit reported on Friday (Nov 11) a 23.4 per cent improvement in net profit for the third quarter on the back of higher revenue, as ridership improved.

Net profit for the three months ended Sep 30 rose to S$17.1 million, from S$13.9 million in the year-ago period, according to a business update on the Singapore Exchange.

The improved profitability came despite the company not receiving any Covid-19 government reliefs in the latest quarter.

SBS Transit’s operating profit for Q3 FY2022 stood at S$19 million, higher than the S$14.1 million in the year-ago period, which included S$13.9 million in Covid-19 government reliefs.

Revenue for Q3 FY2022 rose 16.6 per cent on year to S$390.5 million, with public transportation services the main driver of the increase.

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The transport operator noted that ridership for the North East Line and Downtown Line were respectively at 85 per cent and 83 per cent of their pre-Covid-19 levels in the third quarter of 2022. This was higher than the 49 per cent and 43 per cent respectively in the same period a year earlier.

For the first nine months of 2022, SBS Transit’s revenue rose 15.1 per cent on year to S$1.1 billion, while net profit rose 2.8 per cent to S$51.8 million.

“With the further relaxation of Covid-19 restrictions, we expect rail ridership and other commercial services revenue to improve,” SBS Transit said.

However, it added that the group also continues to face rising costs with higher inflation.

“Elevated energy prices will continue to create cost pressure to fuel and electricity spend. Manpower costs will also contribute to the increase amid a competitive labour market,” SBS Transit said.

SBS Transit shares rose 0.8 per cent or S$0.02 to close at S$2.58 on Friday, before the announcement.