SMRT Q1 profit down 10% to S$20.1 million
SINGAPORE — Transport operator SMRT Corp today (July 30) reported its fiscal first-quarter profit fell 10 per cent, weighed down by losses in its rail operations.
SINGAPORE — Transport operator SMRT Corp today (July 30) reported its fiscal first-quarter profit fell 10 per cent, weighed down by losses in its rail operations.
For the three months ended June 30, net profit amounted to S$20.1 million, down from S$22.4 million in the corresponding period a year earlier, even while revenue grew by 7.8 per cent to S$320.3 million.
SMRT’s overall fare business posted an operating loss of S$3.8 million in the quarter. Despite an increase in revenue and lower electricity tariffs, the main train operations lost S$3.7 million. This was mainly due to higher costs to support an expanded and ageing network, a larger fleet and more stringent regulatory standards.
The LRT operations chalked up a S$1.6 million operating loss due largely to heavier repair and maintenance work on the ageing network and higher operating costs resulting from the addition of new trains. The bus segment, however, posted an operating profit of S$1.5 million on the back of higher revenue and lower diesel costs.
SMRT’s President and Group Chief Executive Desmond Kuek said: “The rail business remains a challenge. Our key focus continues to be in strengthening our rail reliability, and we are committed to the multi-year programmes to upgrade and renew the ageing network.”
Profit from SMRT’s non-fare business increased by 5.5 per cent to S$31.5 million, boosted by its taxi and property rental segments. Total operating expenses rose 10.1 per cent to S$308.9 million mainly because of higher staff costs, depreciation, repairs and maintenance and other operating expenses, partially offset by lower energy expenditure,
SMRT said. SMRT shares closed unchanged at S$1.46 today before the results announcement.