LISTED bus and train operator SBS Transit’s net profit inched up 1.7 per cent year on year to S$18.2 million for the third quarter of FY2024 to September.
This is in spite of a reduced operating profit but a lower tax expense helped to cushion the hit.
In its business update filed to the Singapore Exchange on Friday (Nov 8), SBS Transit reported a 2.1 per cent rise in revenue to S$396.1 million for the quarter, driven mainly by higher average fare and ridership for rail.
But operating expense was 2.3 per cent higher, pushed up by an increase in costs for staff and premises, as well as higher rail licence charge and advertising concession fee.
This resulted in the public transport operator’s operating profit being 0.1 per cent lower year on year at S$18.8 million.
However, SBS Transit expects increases in costs to moderate with lower inflation and energy prices, going forward.
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Revenue wise, rail operations are expected to rake in higher proceeds due to impending increase in fares and expected higher ridership, said SBS Transit. The Public Transport Council has announced a fare increase of 6 per cent with effect from Dec 28, 2024.
Meanwhile, bus operations revenue is expected to decrease upon the handover of the Jurong West bus package.
For the nine months of FY2024, SBS Transit posted a 1.5 per cent drop in net profit to S$51.9 million even as revenue climbed 4 per cent to S$1.2 billion.
The 4.3 per cent rise in operating costs outstripped the percentage improvement in top line, resulting in operating profit for the nine months to fall 2.6 per cent to S$53.5 million.
SBS Transit shares closed flat at S$2.47 on Friday, before the update.
