PUBLIC transport operator SBS Transit : S61 0% reported on Monday (May 13) a 7.5 per cent increase in net profit for the first quarter due to higher fare revenue and ridership.
Net profit for the three months ended Mar 31 rose to S$17 million, from S$15.8 million in the year-ago period, based on a business update by the company.
The improved profitability came despite a 6.6 per cent increase in operating costs to S$374.8 million, from S$351.6 million a year earlier. The rise was mainly due to factors such as higher staff costs, and higher repairs and maintenance costs, said SBS Transit.
SBS Transit’s operating profit for Q1 FY2024 stood at S$17.3 million, 5.5 per cent higher than the S$16.4 million in Q1 FY2023. Revenue for the quarter rose 6.6 per cent to S$392.1 million, from S$367.9 million the year before.
The transport operator added that ridership for the North East Line and Downtown Line were at 95 per cent and 93 per cent of their pre-Covid levels in Q1. These figures were higher than the 89 per cent and 88 per cent, respectively, in the same period the year before. They were also higher than the Q4 2023 figures of 87 per cent and 83 per cent, respectively.
Commenting on the outlook, SBS Transit expects recovery of rail ridership to continue, with the tight labour market for bus captains remaining a challenge.
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The company added that the Jurong West bus package will be handed over to the new operator on Sep 1, 2024.
“Cost increases are expected to moderate with lower inflation and electricity rates,” it said.
SBS Transit shares fell 0.4 per cent or S$0.01 to close at S$2.54 on Monday, before the announcement.
