SBS Transit H1 profit down 0.3% on increased energy costs; special dividend of 15.97 cents declared
Revenue grows 5.3%, thanks to increased average fares and ridership on the company’s public transport services
SBS Transit reported a 0.3% decrease in net profit to S$34 million for the six months ending June 30, 2023, despite a 5.3% increase in revenue to S$785.6 million. The decline was attributed to higher energy and staffing costs. The company declared a special dividend of 15.97 cents per ordinary share and a tax-exempt interim dividend of 8.45 cents per share, resulting in a total payout ratio of 260%.
Revenue from public transport services grew by 5.8% to S$757.2 million, driven by increased ridership on MRT lines such as the North-East Line (1.5%) and Downtown Line (1%). However, revenue from commercial services fell by 6.2% to S$28.4 million due to lower advertising revenue. Despite challenges such as a tight labor market, elevated energy prices, and inflation, SBS Transit remains Singapore's largest bus operator and has the most reliable rail network.
The company expects bus operations revenue to drop with the expiration of the Tampines and Serangoon-Eunos Bus Packages, but anticipates growth in rail revenue.
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