SBS Transit (S61) Q1 2023 TU earnings summary

Executive summary

• Q1 2023 revenue rose 6.9% YoY to $367.93m; operating profit fell 15.6% to $16.35m, while profit after tax increased 1.9% to $15.81m.

• Rail ridership continued recovering, reaching 89% of pre-COVID levels on NEL and 88% on DTL; full recovery may still take time.

Financial highlights

• Revenue increased $23.86m YoY to $367.93m; operating costs rose $26.88m to $351.58m.

• Operating profit declined $3.02m YoY to $16.35m; profit after tax rose $0.30m to $15.81m.

• EBITDA decreased $2.75m YoY to $40.18m.

Outlook and guidance

• Rail ridership and other commercial services revenue are expected to continue improving, though full recovery to pre-pandemic levels may take time.

• Bus revenue will reflect the full-year impact of lower service fees on five extended negotiated bus contracts, effective September 2022.

• Continued investment in technology and productivity improvements is intended to partially offset cost pressures.