Revenue for the period ended Sept 30 rose 10.5 per cent year-on-year to $188.2 million.
But operating costs went up 12 per cent to $178.3 million, with fuel and electricity expenses surging 51.9 per cent, or $17.7 million.
Easily the best revenue growth was in the company's rental business, which shot up 94.5 per cent to $3.5 million due to higher rental income from new shops at the bus interchanges.
Turnover from rail operations also rose substantially by 17.3 per cent to $26.1 million, thanks to increase in ridership of the North-East Line and the light rail transit systems of 17.6 per cent and 16.1 per cent respectively.
Revenue growth from bus operations was a relatively modest 8.5 per cent, to $148.1 million. This was mainly due to a 6.1 per cent rise in bus ridership.
In terms of operating profits, bus operations declined a steep 78.2 per cent to $900,000 in the third quarter. This was mainly due to higher fuel cost.
In contrast, operating profits for rail operations surged 92.3 per cent to $2.2 million, mainly owing to higher rail fare revenue.
The advertising business saw a marginal drop in operating profit of 2 per cent to $4.4 million, while operating profits in the rental segment had increased by 71.2 per cent to $2.4 million.
SBS Transit expects its revenue from the bus and rail operations to continue to improve on the back of growth in ridership and fare increases. With the economic downturn, however, the firm expects advertising revenue to slow down.
The cost of diesel and electricity is expected to be lower due to the recent drop in oil prices.
Earnings per ordinary share for the third quarter was 2.70 cents, compared to 3.27 cents for the same quarter last year.
Net asset value as at Sept 30 was 80 cents, up from 77 cents at Dec 31, last year.
SBS Transit's share price fell three cents to close at $1.69 on Wednesday.
uh oh..... fare hike eminent.....
Originally posted by FireIce:uh oh..... fare hike eminent.....
my sentiment exactly . . .
maybe if the driver got tighter schedule = driving faster = spending less times on road = less consumption of fuel = less expenses on fuel = less fare hikes and profits dropping
correct me if im wrong...but this is what i think it is.
and i wonder if smrt profits have dropped too...then something crazy will happen:)
Originally posted by SBS7382C:maybe if the driver got tighter schedule = driving faster = spending less times on road = less consumption of fuel = less expenses on fuel = less fare hikes and profits dropping
correct me if im wrong...but this is what i think it is.
and i wonder if smrt profits have dropped too...then something crazy will happen:)
Driving faster will lead to more accident. More accident will lead to more claims. More claims lead to more payout .. More payout will lead to less profit. This is worst right ???
Profit up or down, fares will still go up.
So how? ![]()
Originally posted by FireIce:uh oh..... fare hike eminent.....
Oct 08 just up 4cents
think its going to be 10cents this time ![]()
I only know my pocket will be lighter even though I am not taking any public transport ...
Originally posted by ORIGAMIST:I only know my pocket will be lighter even though I am not taking any public transport ...
that goes w/o saying....we are singapore we are singapore, we will stand together ![]()
Originally posted by de_middle:that goes w/o saying....we are singapore we are singapore, we will stand together
. .... and we spent together ...
Originally posted by ORIGAMIST:
. .... and we spent together ...
![]()
Originally posted by ORIGAMIST:
. .... and we spent together ...
And we pay together.. ![]()
gong xi gong xi
profit up or down means still got earn leh
then they wan what? profit go up exponentially ah?
tell them..........
life is like a box of chocolates. ![]()
Originally posted by ChoCoChips:profit up or down means still got earn leh
Profit margin must be in relation to the asset they own ... no matter how much profit, still won't be enough one ... this is the best excuse for raising fare !!! Kudo to our government to come up with this !!!
Originally posted by SBS7382C:maybe if the driver got tighter schedule = driving faster = spending less times on road = less consumption of fuel = less expenses on fuel = less fare hikes and profits dropping
correct me if im wrong...but this is what i think it is.
and i wonder if smrt profits have dropped too...then something crazy will happen:)
driving faster = spending less times on road = more consumption of fuel
faster driving will cause more consumption of fuel
Instead of giving numbers, I think the bus operators should also provide information on their fuel and electricity usage. We need to know if they are taking measures to reduce their operating cost. It will not be fair to ask the people to pay higher fare if the bus operators are not taking steps to cut their expenses.
My opinion of the profit decrease might be caused by the purchase of the Scannia K230UB and the following fleet increament cause by the new KUBs and those buses they are deemed to replace not going off yet.
However, this may be not so impactful as many people are severly hit by the mortage crisis in USA that they revert from expensive taxis or private cars to buses, in addition, the fuel price had reach a unprecended low level which might ease the load on operators.
In addition, driving faster requries more power from the engines and in term used more fuel to be generated, therefore, it is not an effective measure to increase profits.
Finally yet importantly, we need to realise that SBST is still having profits, that shows that the company had the calibre to ride through crisis times and deliver the same standards of service to commuters. Therefore, i am quite sure that SBST will have a massive jump in profits once the sky is cleared.
In conclusion, i am not alarmed by the decrease of profits and it is just a technical recession and it is a short time effect.