SMRT announces its 3Q FY2016 results on 25th January 2015. Similar to 2QFY2016, operating expenses increased 2.4% to $303.0 million due to higher repairs and maintenance costs, staff costs, depreciation, and other operating expenses.
The group’s rail operations (Train and LRT) posted a combined loss of $1.1 million in YTD FY2016 as the increase in operating expenses outpaced revenue growth.
Bus operations posted an operating profit of $3.4 million in 3Q FY2016 on the back of higher revenue, training grants, reliability incentives and lower diesel costs, partially offset by higher staff costs, depreciation, and repairs and maintenance expenses.
Taxi operating profit increased to $4.8 million and Rental operating profit increased to S$21.8 million.
This was due mainly to:
- Higher taxi rental contribution and more early retirement of taxis in 3Q FY2015.
- Higher rental revenue contribution from train stations and bus interchanges.
Things to Note
Rail Financing Framework
No news since the last mention which causes the surge in share price (SMRT Shares Surges on Hopes of Rail System Reform).
Bus Services License Expiry
SMRT is in discussion with the authorities on the contract terms for the remaining bus services beyond the license expiry in August 2016.