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SMRT net profit falls 25.7% to S$62m

Transport operator SMRT has booked a net profit of S$61.9 million for the full year ended on 31 March 2014. This is a 25.7 per cent drop year-on-year, hurt by numbers from its rail operations.

SINGAPORE: Transport operator SMRT has booked a net profit of S$61.9 million for the full year ended on 31 March 2014.

This is a 25.7 per cent drop year-on-year, hurt by numbers from its rail operations.

Full year revenue, meanwhile, rose by 4 per cent, to S$1.16 billion.

SMRT said its overall fare business incurred a loss of S$25 million for the year.

It saw a 2.9 per cent increase in train ridership, but operating profit for its train operations fell sharply to S$5.5 million, compared to S$65 million in the previous year.

This is compared to an operating profit of S$32.3 million in the previous year.

The drop was due to heightened ridership demands and regulatory standards.

Bus ridership meanwhile rose by 4.6 per cent but its bus operations continued to stay in the red, with a loss of S$28.4 million for the full year.

SMRT said its fare business will continue to be challenging because of heightened operating requirements and that the recent fare adjustments will partially offset some of the increased costs.

It expects that the impending changes to the rail financing and bus operating models will address the sustainability of its fare business in Singapore.

SMRT has proposed a final dividend of 1.2 cent per ordinary share.

Including the interim dividend of 1.0 cent, this takes the total dividend for the year to 2.2 cents per share. 

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