SBS Transit (S61) AGM 2024 presentation summary

FY2023 financial performance

• Revenue was $1,527.1m, up $11.8m YoY; operating profit was $76.7m, down $3.2m.

• Profit before tax rose $5.0m, or 6.0%, to $88.0m; higher revenue and $8.3m growth in interest income were partly offset by $15.1m higher operating costs.

• Revenue growth reflected higher rail ridership, bus mileage and advertising amid market recovery, partly offset by indexation and the full-year impact of lower service fee rates for extended Negotiated Contract packages.

• Profit after tax was $69.1m, up $1.1m; EBITDA was $169.3m, down $4.6m or 2.7% YoY.

• EPS increased 1.6% to 22.15 cents.

Balance sheet

• Total assets were $1,172.20m at 31 Dec 2023, down $39.0m, mainly from depreciation of vehicles, premises and equipment.

• Short-term deposits and bank balances rose $26.67m, or 7.7%, to $371.97m; other current assets increased $60.57m, or 16.7%, to $424.35m.

• Total liabilities fell $74.76m, or 13.2%, to $490.11m, mainly due to lease liabilities, deferred tax provision and income tax payable.

• Equity increased $35.77m, or 5.5%, to $682.09m, mainly from operating profits, partly offset by dividends paid.

Dividend payout and shareholder returns

• FY2023 total dividend was 11.16 cents per share, up 2.4% YoY; interim and final dividends were 5.58 cents each.

• Dividend payout ratio was 50%; dividend yield was 4.2% based on the 31 Dec 2023 share price of $2.67.