SBS Transit (S61) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 0.8% to $1.53b, while operating profit fell 4.1% to $76.65m; net profit attributable to shareholders increased 1.5% to $69.08m.

• Higher ridership and advertising income supported revenue; increased fuel, electricity and manpower costs weighed on operating profit.

Financial highlights

• Revenue was $1,527.1m vs $1,515.3m in 2022; operating costs rose 1.1% to $1.45b.

• EBITDA decreased 2.7% to $169.27m; EPS increased 1.6% to 22.15 cents.

• Net profit attributable to shareholders was $69.08m, up 1.5% or $1.1m YoY.

Outlook and guidance

• Rail fare revenue is expected to grow with higher ridership and the fare increase effective 23 Dec 2023.

• Bus operations revenue is expected to decline when the Jurong West bus package expires and transfers to a new operator from 1 Sep 2024.

• Operating costs remain challenging amid inflation uncertainty, a tight labour market and elevated electricity prices.