SBS Transit 1QFY2024 profit after tax up 7.5% y-o-y on higher fare revenue

With the easing of inflation and electricity costs, SBS Transit expects cost increases to moderate

SBS Transit has reported profit after tax of $17 million for 1QFY2024, up 7.5% y-o-y. Revenue in the same period was up 6.6% y-o-y to $392.1 million, according to the transport operator in its business update for the three months ended March.

SBS Transit attributes the higher revenue to higher average fare and ridership.

The company, which manages a network of outdoor advertising platforms, collected higher revenue of $0.65 million.

On the other hand, the company incurred higher costs for staff and maintenance as well as advertising concession fees.

Going forward, SBS Transit is seeing continued recovery in rail ridership.

However, it warns that the tight labour market for bus drivers, whom the company calls "bus captains", remains a challenge.

Come September, the company will hand over its existing bus operating package for Jurong West to the new operator who won the tender.

With the easing of inflation and electricity costs, SBS Transit expects cost increases to moderate.

SBS Transit shares closed at $2.54, down 0.39% for the day and down 4.51% year to date.