SMRT reveals 3 key outlooks that investors should care about

Cost pressures and revenue potential unveiled.

During a presentation in the recent Citi ASEAN Investor Conference 2013, SMRT laid out the 3 key outlooks for the transport company.

First, the Group’s profitability will be impacted near-term by cost pressure in fare business. Long-term prospect remains positive as SMRT will benefit from Government’s push for public transport with rising ridership, supported by increased train capacity and better network connectivity

Second, SMRT noted that there is ongoing discussion with the government on sustainable models for Trains and Buses which the company hopes will address issues on capex and operating cost pressure.

Lastly, SMRT plans to expand its commercial revenue stream by continuing to refurbish commercial spaces and improve yield in its existing network. It will also work to diversify its media and advertising platforms. It sees potential in capitalising on commercial opportunities beyond its existing rail network, such as the Singapore Sportshub, a joint venture between SMRT and NTUC opening in early 2014, which will double retail space under management to approximately 76,000 sqm.

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