By Jonathan Peeris www.channelnewsasia.com
SINGAPORE: SMRT said its second-quarter net profit fell 13.3 per cent from a year earlier to S$45.8 million. The next 12 months may be challenging, the transport operator said.
Profit declined despite revenue for the period rising 7.2 per cent to S$246 million.
SMRT said the revenue increase is primarily because of higher MRT ridership, contributions from Circle Line Stages 1 and 2, higher Bus ridership and higher rental and advertising revenue.
These gains were partially offset by lower revenue from Palm Jumeirah Monorail.
Rental revenue grew 16.4 per cent from a year earlier to S$2.6 million, following the redevelopment of commercial spaces at various MRT stations.
Consequently, operating profit for the quarter increased 15.5 per cent to $14.7 million.
SMRT said the outlook for the next 12 months is expected to be challenging with continuing losses from its Circle Line operations, increasing cost pressures and the negative impact of distance fares on MRT revenue. – CNA/fa