SBS Transit (S61) H1 2023 earnings summary

Executive summary

• 1H2023 revenue rose 1.6% YoY to $744.4m; operating profit fell 16.1% to $36.1m, while profit attributable to shareholders increased 0.4% to $34.8m.

• Higher interest income and lower tax expenses supported net profit; profit before tax declined 2.4% to $41.7m.

• Rail ridership growth lifted public transport revenue, while lower bus service fees and higher operating costs weighed on results.

Financial highlights

• Operating costs increased 2.7% YoY to $708.3m; fuel and electricity costs rose 10.3% to $132.9m, and staff costs increased 0.8% to $375.4m.

• EBITDA fell 8.1% to $83.3m.

• Interest income increased to $6.3m from $0.6m; finance costs decreased 16.1% to $0.7m.

• Net cash from operating activities was $54.2m versus $59.1m; cash and cash equivalents rose to $374.2m from $345.3m at period start.

Outlook and guidance

• Total revenue is expected to stabilise; outlook remains cautious amid cost uncertainties from inflation, a tight labour market and energy prices.