SBS Transit raises interim dividend despite 7.7% drop in H1 profit
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Shares of SBS Transit closed 0.9 per cent lower at $3.21 on Aug 11 before the announcement.
ST PHOTO: LIM YAOHUI
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SINGAPORE – SBS Transit recorded a net profit of $31.1 million for the first half of 2025, 7.7 per cent lower than the same period a year ago.
Revenue fell 4.5 per cent to $745.9 million, from $781.4 million the year before, said the bus and train operator in a bourse filing after market close on Aug 11.
Revenue from public transport services dropped 5.1 per cent to $715.6 million.
The decline was mainly due to the loss of 26 routes under the Jurong West bus package to SMRT Buses in August 2024, although this was partially offset by higher average rail fares.
Revenue from other commercial services rose 11.9 per cent to $30.3 million on the back of higher digital advertising revenue and the SG60 advertisement campaign on buses.
Earnings per share for the first half of 2025 stood at 9.95 cents, down 7.9 per cent from 10.8 cents in the first half of 2024.
However, SBS Transit declared a higher interim dividend of 8.95 cents per share, compared with 5.58 cents a year ago.
“Rail operations revenue is expected to increase with steady growth in ridership and fare adjustments that came into effect on Dec 28, 2024,” SBS Transit said.
Bus operations revenue is expected to decline as a result of the full-year impact of the loss of the Jurong West bus package from Aug 31, 2024.
SBS Transit also noted that its Tampines bus package will be expiring in July 2026. The group has submitted a bid for the project again and is awaiting results of the tender.
“Manpower costs are anticipated to rise due to the tight labour market. Barring unforeseen circumstances, fuel and energy costs are expected to ease.”
Shares of SBS closed 0.9 per cent, or 3 Singapore cents, lower at $3.21 on Aug 11 before the announcement. THE BUSINESS TIMES
