SBS Transit net profit down 7.7% in H1

The group’s revenue also fell 4.5% to $745.9m

SBS Transit reported a 7.7% decline in net profit to $31.1m for the six months ending 30 June 2025.

The group’s revenue also fell 4.5% to $745.9m, mainly due to the loss of the Jurong West bus package last August, partly offset by higher rail fares.

Operating costs also decreased 4.7% to $711.8 million, helped by lower fuel, electricity, and maintenance expenses.

The group’s operating profit also dropped 1.7% to $34.1m.

Revenue from SBS Transit’s bus and rail operations decreased by 5.1% to $715.6m.

Despite the revenue dip, average daily ridership on the rail network showed growth, with the North East Line increasing 2.4% to 593,000 passenger trips, the Downtown Line up 1.0% to 463,000 trips, and the Sengkang-Punggol LRT reaching 157,000 trips daily.

Operating profit from public transport services fell 10.3% to $24.2m, impacted by lower revenue and increased staff and other operating costs.

Meanwhile, revenue from other commercial services rose 11.9% to $30.3m, bolstered by higher digital advertising income and the SG60 bus advertisement campaign. Operating profit in this segment climbed 28.3% to $9.9m, despite higher advertising concession fees.

SBS Transit declared an interim dividend of 8.95 cents per share, a 90% payout ratio.

The company expects rail revenue to improve with continued ridership growth and fare adjustments implemented since 28 December 2024.

However, bus revenue is projected to decline due to the ongoing impact of losing the Jurong West Bus Package since August 2024.

The Tampines Bus Package, set to expire in July 2026, has been tendered with SBS Transit awaiting the outcome.

Manpower costs are forecasted to rise amid a tight labor market, while fuel and energy expenses are expected to ease, barring unforeseen developments.