MTR (66) H2 2024 earnings summary

Executive summary

• Celebrated 45th anniversary, highlighting steady business growth and major new railway investments exceeding HKD 100 billion to expand network and support Hong Kong’s development.

• Total revenue rose 5.3% year-over-year to HK$60,011 million, driven by recovery in Hong Kong transport and property businesses.

• Net profit attributable to shareholders surged 102.6% to HK$15,772 million, with property development profit up 392.8% to HK$10,265 million.

• Maintained world-class train service reliability at 99.9% and served over 1.9 billion passenger journeys in Hong Kong last year.

• Advanced ESG initiatives, including debut green bond issuance and launch of electric buses, with SBTi-approved targets to halve emissions by 2030.

Financial highlights

• Recurrent profit in Hong Kong reached HKD 6 billion, with overseas recurrent profit at HKD 1.2 billion, aided by exit from loss-making Swedish franchises.

• Property development profit after tax was HKD 10.3 billion, driving total net profit attributable to shareholders to HKD 15.8 billion.

• EBIT loss from Hong Kong transport operations narrowed to HKD 63 million from HKD 1.1 billion last year, with patronage up 3% to 1,953.5 million.

• EBITDA margin (all subsidiaries) improved to 29.8%; EBIT margin rose to 14.6%.

• Final ordinary dividend proposed at HKD 0.89 per share, total for the year HKD 1.31 per share.

Outlook and guidance

• Profits will be largely reinvested in upgrading and expanding the railway network, with significant capital expenditure planned.

• Property development profits expected to fluctuate year-on-year, with several projects to be booked in 2025.

• Will continue prudent financial management, leveraging Rail plus Property model and diversified financing, including bonds.

• Strategic focus on expanding in Mainland China (Greater Bay Area) and international markets.

• Prudent cost management and strong balance sheet remain priorities amid uncertain economic and interest rate environment.