SBS Transit has posted a whopping 75.3 per cent jump in second-quarter net profit to $12.7 million, fuelled by better margins from the bus contracting model and higher rail ridership.
For the quarter ended June 30, 2017, the ComfortDelGro-owned transport operator reported a 7 per cent jump in revenue to $287.8 million compared with the same period a year ago.
Earnings per share was 4.09 cents, up from 2.34 cents in the previous corresponding quarter. The group's net asset value per share was $1.40 as of June 30, up from $1.35 on Dec 31, 2016.
An interim dividend of 3.65 cents was declared, up from 2.35 cents a year ago.
SBS Transit said revenue from public transport services was boosted by the transition to the bus contracting model and higher ridership from rail services. The higher ridership helped offset lower average rail fare from the fare reduction effective Dec 30, 2016.
Meanwhile, revenue from commercial services slipped 15.3 per cent to $13.4 million due to lower advertising revenue.
As at June 30, the group had cash and bank balances of $4.7 million.
SBS Transit gained 0.4 per cent or 1 cent to close at $2.59 before the results were released.