SBST Full Year Profit Dropped
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from www.sgx.com
read the parts in bold. their profit from bus division dropped. profit are mainly derived from Advertisements and Rentals of shops instead of from bus revenue.. i know some ppl will start blasting SBST for increase in bus fares but pls look at the overall situation..
QUOTED MESSAGE
8(a) Review of Performance
Group revenue of $729.6m for 2008 grew by 8.9% or $59.6m as compared to $670.0m in 2007 due mainly to higher bus and rail fare revenue and higher rental income.
Operating expenses of $682.6m for 2008 increased by 10.7% or $65.8m as compared to $616.8m in 2007 due mainly to higher fuel and electricity costs which increased by 43.1% or $55.5m.
Group operating profit of $47.1m for 2008 was 11.6% or $6.2m lower than that of $53.3m in 2007.
Net income from investments of $2.9m for 2008 was 51.0% or $3.0m lower than that of $5.9m in 2007 due mainly to lower interest income on investments.
Consequently, Group profit before tax of $50.3m for 2008 was 15.5% or $9.2m lower than that of $59.5m in 2007.
Taxation of $9.7m for 2008 was $0.2m higher than last year due mainly to the write-back of overprovision in deferred tax of $1.1m arising from the reduction in corporate tax rate from 20.0% to 18.0% in 2007, partially offset by lower profits generated in 2008.
Group profit attributable to shareholders of the Company of $40.6m for 2008 was 18.9% or $9.4m lower than that of $50.0m in 2007.
A segmental breakdown by business is provided under paragraph 13.
Turnover from Bus Operations for 2008 at $572.0m was 6.8% or $36.6m higher than last year. Ridership increased by 5.7% as compared to last year. However, operating profit from Bus Operations dropped by 66.8% or $17.1m from $25.6m in 2007 to $8.5m in 2008 due mainly to higher fuel cost, partially offset by higher bus fare revenue.
Turnover from Rail Operations for 2008 at $101.5m increased by 15.8% or $13.8m as compared to last year. Ridership for North-East Line and the two light rail transit systems went up by 15.5% and 14.4% respectively as compared to last year. Operating profit from Rail Operations of $10.4m was better by 152.0% or $6.3m as compared to $4.1m in 2007 due mainly to higher rail fare revenue, partially offset by higher electricity cost.
Turnover from Advertisement Business for 2008 increased by 2.2% or $0.7m to $30.9m as compared to last year due mainly to higher rail advertisements. Consequently, operating profit from Advertisement Business for 2008 increased by 5.3% or $1.0m to $19.3m as compared to last year.
Turnover from Rental Business for 2008 increased by 82.9% or $5.8m to $12.7m as compared to last year due mainly to rental from new shops at the bus interchanges. Operating profit from Rental Business for 2008 increased by 69.3% or $3.6m to $8.9m as compared to last year.
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my point of view: higher bus fare rise > ppl complain > less ridership > low profit
lowering bus fare [all sorts of fare] > ppl happy > more ridership > high profit
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Originally posted by scaniaB7RLE:
my point of view: higher bus fare rise > ppl complain > less ridership > low profit
lowering bus fare [all sorts of fare] > ppl happy > more ridership > high profit
Commuter's mood is not the only factor that affects ridership directly. -
Originally posted by service_238:
Commuter's mood is not the only factor that affects ridership directly.Indeed. Consider: fuel costs, running costs, the costs of purchasing new buses, the cost of maintaining the buses, etc.
Many of these costs have been going up recently.\
There's also many other factors to think about; the changing urban landscape can render what used to be a busy bus route near-dead, though it could also do the opposite.
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at least NEL is making profits now
and SBS's bus ops is making profits unlike SMRTB
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Originally posted by sbst275:
at least NEL is making profits now
and SBS's bus ops is making profits unlike SMRTB
Well, the last time I checked, SBS Transit and ComfortDelGro is not trying to make any stupid loss-making investements...
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Originally posted by eX.A.K.R.:
Well, the last time I checked, SBS Transit and ComfortDelGro is not trying to make any stupid loss-making investements...
Remember e talk abt selling NEL to SMRT back then???Now the only thing SMRT is keeping afloat is MRT biz
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Anybody major in economics here?
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Originally posted by lianamaster:
Anybody major in economics here?
Saw the 2nd post in this thread, seems like no need to explain with regards to economics. Just basically what you think. Higher fare does not necessarily mean lesser ridership cost. -
how much the salary of their management staff went up har?
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Originally posted by scaniaB7RLE:
my point of view: higher bus fare rise > ppl complain > less ridership > low profit
lowering bus fare [all sorts of fare] > ppl happy > more ridership > high profit
Sometimes you need to take in consideration of the economics as well. Take a look at taxis now, are there lesser people taking less taxis due to the increase of fares? Now there is a surplus amount of taxis on road. Hence, people will choose a cheaper choice which is buses. Therefore, the demand of buses already increased. When price drops further, there will be more demand of buses and cause shortage of buses. Other factors like maintance cost increase and so on, is not able to cover the profit they made from higher ridership.
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there're more bicycles around these days..probably thats the reason why..