SBS Transit has reported earnings of $70.3 million for the FY2024 ended Dec 31, 2024, up 1.8% y-o-y. For the 2HFY2024, earnings came in 6.8% y-o-y higher at $36.6 million.
The public transport operator declared an earnings per share for FY2024 of 22.52 cents per share, up from the 22.15 cents per share declared in the same period a year ago.
Group revenue for the FY2024 rose 2.1% y-o-y to $1.56 billion, up from the $1.53 billion reported in the same period a year ago. However, revenue for the 2HFY2024 fell 0.5% y-o-y to $778.4 million.
Full revenue from its public transport services business, which includes bus and rail services, increased by 2% y-o-y. This came from higher rail ridership, and offset by lower bus revenue mileage.
Revenue from other commercial services business increased 5.1% due to advertisers launching more digital campaigns.
Operating profit for the full year fell 4.5% y-o-y to $73.2 million, down from $76.7 million in the FY2023. 2HFY2024 operating profit also saw a 5.2% y-o-y decrease to $38.5 million.
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This decline is due to advertising concession fee payable from Jan 1, 2024 under the new rail advertising concession agreement and higher premises costs, offset by higher revenue.
The group says that group operating costs increased by 2.5% to $1.49 billion due to higher costs incurred for manpower, premises, repairs and maintenance, and higher rail licence charge and advertising concession fees, which were offset by productivity savings, lower fuel and electricity costs, and lower depreciation expense.
SBS Transit has declared a total dividend per share for 2024 of 28.68 cents, up from the 11.6 cents in 2023. This includes a tax-exempt one-tier final dividend of 14.69 cents per ordinary share and a tax exempt one-tier special dividend of 8.41 cents per ordinary share, and inclusive of an interim dividend of 5.58 cents.
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The group expects rail operations revenue to grow marginally with higher ridership and fare adjustments that came into effect on Dec 28, 2024.
Bus operations revenue will decrease with the full year impact of the expiry of the Jurong West bus package on Aug 31, 2024, and operating costs will continue to remain a challenge, SBS Transit notes.
“We have been awarded the contract and will continue to operate the Seletar Bus Package for a new five-year contract at current market rates effective from March 2025, with an option for an extension of between two and five years,” the group notes.
It also won the tender to operate and maintain the Jurong Region line with French operator RATP Dev.
Shares in SBS Transit closed flat at 2.41 cents on Feb 25.
