SMRT’s Q3 profit slumps 44.1%

SINGAPORE — Transport operator SMRT Corp suffered a 44.1 per cent plunge in fiscal third-quarter net profit from the corresponding period in the previous year despite a rise in revenue, hit by higher staff costs, depreciation, repair and maintenance costs.

Net profit for the three months ended Dec 31 was S$14.2 million, down from S$25.5 million the year-ago period — even as revenue rose 4.1 per cent to S$293.3 million on increased ridership, SMRT said today (Jan 28).

Staff costs surged by 21.4 per cent in the quarter due to the increased headcount in its train and bus operations, as well as the wage revision exercise in the fourth quarter of last year.

Depreciation increased by 10.2 per cent largely because of the capitalisation of operating assets taken over from the Land Transport Authority and a newer taxi fleet.

Repairs and maintenance costs jumped by 6.7 per cent, due mainly to work on aging rail assets and higher operational demand, as well as the higher cost of cleaning services.

Looking ahead, SMRT said it “continues to face increasing cost pressures in the fare business arising from ongoing efforts to meet heightened demands on service, reliability and capacity.”