Transport operator SMRT has reported an 8.9% fall in net profit in 1QFY12 to $34.8 million from $38.2 million.
Group revenue increased by 7.5% or $17.7 million to $253.1 million due mainly to higher MRT and bus ridership, contribution from Circle Line, higher taxi rental revenue, increase in external fleet maintenance revenue and higher rental and advertising revenue, partially offset by lower average fare for MRT and bus.
Group operating profit was $3.7 million lower at $42.4 million. This was due mainly to energy costs increasing by 32.7% or $9.9 million for this quarter. Staff and related costs, repairs and maintenance and other operating expenses were also higher.
Revenue from Train operations increased by $5.4 million to $135.0 million as a result of higher ridership, partially offset by lower average fare for MRT due to the implementation of distance fares. Operating profit declined by $5.2 million to $22.6 million due mainly to higher energy costs and staff and related expenses. Staff and related expenses were higher due to increased headcount for the operation of Circle Line, increased train runs and absence of jobs credit.
Revenue from Bus operations was 3.4% higher at $54.3 million due mainly to higher ridership. Higher operating loss of $4.4 million was incurred in the quarter as compared to 1QFY11 due mainly to higher diesel cost, partially offset by higher revenue.
Taxi rental revenue increased by 15.0% or $2.7 million to $21.0 million, due mainly to larger average hired-out fleet. Operating profit decreased marginally by $0.2 million due mainly to higher depreciation and higher insurance cost, partially offset by higher revenue.
Rental revenue grew 10.8% to $19.2 million as a result of increased space following the redevelopment of commercial spaces at various MRT stations. Consequently, operating profit increased by 10.9% to $15.0 million.
Advertising revenue increased by $0.9 million to $7.1 million due mainly to increased advertising on trains, MRT stations, buses and taxis. However, operating profit decreased marginally by $0.2 million in the current quarter as a result of higher depreciation and other operating expenses.
Revenue from Engineering and Other Services increased by $4.9 million to $14.0 million due mainly to higher revenue from fleet maintenance and diesel sold to taxi hirers. In addition, payment of $0.7 million was received for Palm Jumeirah and recognised as revenue in the quarter. There was an operating profit of $3.3 million in 1QFY12 as compared to an operating loss of $1.1 million in 1QFY11. The operating loss in 1QFY11 was due mainly to no revenue being recognised in Palm Jumeirah while costs for the operation and maintenance of Palm Jumeirah continued to be incurred.
As at reporting date, the group’s outstanding exposure in Palm Jumeirah is about $1.8 million in trade receivables.
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