SBS Transit profit up 28% in 2014, petrol price down, yet PTC want to raise fares!!

[Papsmearer]

SINGAPORE: Local bus and train operator SBS Transit posted a 27.8 per cent rise in 2014 net profit, helped by higher ridership and fares.

SBS Transit, Singapore's largest bus operator, said on Tuesday (10 Feb) it earned S$14.3 million in 2014, up from S$11.2 million in 2013, as revenue climbed 12.2 per cent to S$951 million.

Revenue from the bus segment rose 10.5 per cent to S$754 million, while revenue from the rail segment gained 19.5 per cent to S$197 million, boosted by the full year operation of the Downtown Line which raised ridership.

Average daily ridership on SBS buses increased by 3.2 per cent to 2.8 million passenger trips for 2014.

Looking ahead, SBS Transit said revenue is expected to be higher with higher ridership and higher average fare, citing the overall fare adjustment of 2.8 per cent approved by the Public Transport Council for bus and train fares that will take effect from Apr 5.

However, it added the outlook for bus and rail segments will continue to be challenging. "With headcount increases mainly from the build-up for Bus Service Enhancement Programme, Downtown Line 2 and salary adjustments, staff costs are expected to be higher. The continued renewal and expansion of the bus fleet is expected to result in higher depreciation and financing costs," it said.

SBS said its bus segment managed a 14.9 per cent rise in operating profit to S$12.3 million last year, helped by increases in average daily ridership and average fare, higher rental from shop renewals, increased advertising sales and other operating income.

But on its own, the core bus operation continued to suffer losses amounting to S$13.5 million in 2014.

 

[Papsmearer]

Re: SBS Transit profit up 28% in 2014, petrol price down, yet PTC want to raise fare

Fares for bus and train rides will go up by 2.8%, or about 2 and 5 cents per trip from 5 April 2015, the Public Transport Council announced on Wednesday, 21 January.

 

[makapaaa]

Re: SBS Transit profit up 28% in 2014, petrol price down, yet PTC want to raise fare

[h=1]SBS TRANSIT ENJOYS 27.8% JUMP IN PROFITS FOLLOWING LAST YEAR'S FAKE HIKES[/h]
Post date:
10 Feb 2015 - 8:19pm








Local Bus and Train operator SBS Transit reported a 27.8% jump in profits for 2014 thanks mainly to higher fares and increased ridership.
It looks like SBS continues to profit from over crowdedness but still applies to raises fares.
The company earned a total of 414,3 Million in 2014 up form $11.2 Million in 2013. This is out of a total revenue of $951 Million for 2014.
Bus ridership and fare hikes helped increase revenue 10.5% to $754 Million and rail revenue also grew 19.5%
Average daily ridership was up 3.2% also thanks to the completion of part of the downtown line
Talking about the future, SBS was positive saying that they expect ridership and revenue to continue to increase, especially given the 2.8% fare hike approved by the public transport council.
Despite its positive outlook, the company again said that their bus and rail operations will "continue to be challenging".






It highlighted how the bus operations on its own still lost $13.5 Million in 2014.
This is a story that Singaporeans have continued to hear again and again despite the transport companies repeatedly reporting increases in overall profit.
As long as our public transport operations continue to be run by private companies, they will always apply for fare hikes to increase profits even if they are already making million in profits each year.
In the end, Singaporeans suffer as more people are crammed onto trains and busses and fares continue to increase.

Related:
SBS sees 62% Rise in Profits in Q3 Thanks to Crowded Trains, Buses and High Fares (Nov 2014)
SBS Transit enjoys 57% jump in profits following public transport fare hikes (Aug 2014)
RECAP: SBS records 7% increased revenue in Q2 2013 despite no fare hikes (Jan 2014)