SBS Transit’s Q1 net profit rises 7.5% to $17 million on higher fare revenue, ridership

SINGAPORE – Public transport operator SBS Transit reported on 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 March 31 rose to $17 million, from $15.8 million for 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 $374.8 million, from $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 the first quarter of the 2024 financial year stood at $17.3 million, 5.5 per cent higher than the $16.4 million for the first quarter of FY2023. Revenue rose 6.6 per cent to $392.1 million, from $367.9 million the year before.

The transport operator added that ridership for the North East Line and Downtown Line came in at 95 per cent and 93 per cent of their pre-Covid-19 levels in the first quarter. 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 fourth-quarter 2023 figures of 87 per cent and 83 per cent, respectively.

Looking ahead, SBS Transit expects recovery of rail ridership to continue, with the tight labour market for bus captains remaining a challenge. The company added that the Jurong West bus package will be handed over to a new operator on Sept 1, 2024.

“Cost increases are expected to moderate with lower inflation and electricity rates,” it said.

SBS Transit shares closed unchanged on May 14 after falling 0.4 per cent to end at $2.54 the previous day, before the announcement.

THE BUSINESS TIMES