Wei Kiat's Blog

From Sammyboy Forum (Donno where he get from)

Taxi fleet's revenue down 16%; retail rents up 34.9%

By MATTHEW PHAN

	Email this article
	Print article
	Feedback

SMRT Corporation reported a 13 per cent year-on-year rise in net profit to $31.5 million for the second quarter ended September 2006, helped by increased ridership on MRT lines and rental of retail space at refurbished stations.

The intent to upgrade public transport to accommodate the disabled will not largely affect SMRT's costs. - Saw Phaik Hwa

Revenue, including 'other' operating income, for the group, which also runs bus and taxi services, rose 3.3 per cent to $193.8 million for the quarter.

SMRT chief Saw Phaik Hwa said ridership on trains and buses in 3Q 07 is expected to be marginally higher than the previous corresponding period, though it will fall quarter-on-quarter due to seasonal fluctuation.

Income from rental and advertising is expected to be comparable with the earnings in 2Q 07, while total operating expenses are seen rising due to scheduled repairs, higher electricity bills and other costs.

For 2Q 07, the group's MRT segment saw a 5.4 per cent rise in revenue to $102.2 million as ridership rose 'due to GDP growth', SMRT said.

Helped by lower staff and electricity costs, operating profit for this segment rose 24.5 per cent to $29.3 million.

Related articles: Click here to view SMRT's press release Q207 and 1HY07 financial statements Presentation slides

Rental revenues rose by 34.9 per cent to $8.7 million for the quarter, contributed by increased space and better yield following the redevelopment of retail space at various MRT stations.

Total lettable space increased by 12.1 per cent in 2Q 07, while operating profits for the segment rose 25.2 per cent to $6.6 million.

However, SMRT suffered Q2 operating losses in the taxi division, and rising fuel costs led to lower operating profit in the bus division.

Its fleet of taxis saw a year-on-year loss of 16 per cent in revenue to $17 million, with an operating loss of $0.9 million against an operating profit of $1.3 million in Q2 last year.

=> Solution: Hike cab fare!

But this quarter has seen significant improvements from the first quarter of this year, when operating losses amounted to $3.2 million, SMRT's chief financial officer Lim Cheng Cheng said.

The number of taxis hired out was 2,218, against 2,476 in the previous Q3 and 2,131 in Q1. Ms Saw believes the taxi fleet will continue to gain market share.

Fare hikes have led to a 10 per cent rise in taxi drivers' incomes.

The fleet has expanded from 2,684 taxis in Q1 to 3,019 taxis now.

Bus revenues rose 2.2 per cent to $48.3 million, but operating profits fell 31.5 per cent to $1.6 million, due to higher diesel and other costs.

Ms Saw also said the Transport Ministry's intention to upgrade public transport to accommodate the disabled will not

...[Message truncated]

And from ST,

SMRT powers ahead with 10% increase in interim earnings
Higher ridership and better rental income enhance profits; bus and cab units return to black
Source

DOMINANT rail operator SMRT posted a 10 per cent rise in net earnings to $59 million for the first half ended Sept 30, powered by higher ridership and better rental income.

Revenue rose by 2.7 per cent to $367.8 million. Besides improved ridership, interim turnover was boosted more meaningfully* by the fare increase in July last year.

Profit was enhanced by a spike in interest and investment incomes on the back of an improved equity market as well as SMRT's enlarged cash horde.

Cash and equivalents at the end of the first half stood at $143.1 million, from $66.2 million previously.

Earnings per share for the interim period rose to 3.9 cents from 3.6 cents. Net asset value per share and net tangible asset per share stood at 38.4 cents and 35.6 cents respectively - from 38.8 cents and 36.1 cents previously.

Costs for the first six months rose slightly, with higher salary and energy costs offset partially by lower depreciation - partly because of a smaller taxi fleet.

There are signs of a respite in energy expenses, which have been northward bound for several quarters now. Indeed, lower diesel cost was cited as one reason for bus operations returning to profitability in the last three months.

On a quarter-to-quarter basis, all of SMRT's operations were in the black in the July to September period, except for LRT. Even its bus and taxi operations returned to profitability from the rare losses posted in the first quarter.

From an operating loss of $500,000, buses earned $2.4 million. And from $3.2 million in losses, taxis made $1.3 million.

A spokesman said the bus operations were boosted by 'lower diesel prices and higher ridership' in the second quarter, while the cab unit had 'reduced bad debts and more taxis hired out''.

But the bus and cab divisions were outdone by the rental of retail space. This business made $5.3 million in the second quarter, and $10.2 million in the six months - far exceeding chief executive Saw Phaik Hwa's target when she first set out to improve rental yield by revamping the retail concept in MRT sites three years ago.

Looking ahead, SMRT expects rail and bus ridership in the third quarter to be higher than in the same period last year. The Oct 1 fare hike will also kick in. But it expects costs to rise on the back of repairs and maintenance and the mid-life upgrade of trains. It also said diesel prices would be volatile.

Directors have recommended a dividend of 1.5 cents per share for the interim, unchanged from previously.

At least one analyst expects the Government's renewed drive to raise public transport ridership to be positive for SMRT.

*Can someone justify the meaning of the word "meaningfully"?