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Date of lssue: 31 October 2012
Embargo Date!Time: 31 October 2012/5.05 pm
SMRT Corporation Ltd
251 North Bridge Road
Singapore 179102
Tel: 65 6331 1000
Fax : 65 6339 4229
www.smrt.com.sg
SMRT REPORTS 2Q FY2013 NET PROFIT OF $33.3M
GROUP PERFORMANCE HIGHLIGHTS
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Group revenue rose 7.7% to $281.2 million in 20 FY2013 with Fare and Non-Fare businesses recording higher revenue of 7.4% and 8.6% respectively. Trains led growth with a 9.7% or $13.6 million increase in revenue, with higher ridership and contribution from the full opening of the Circle Line in January 2012. Revenue grew 8.2% to $556.5 million for the first half (1H FY2013) due mainly to higher train, bus, taxi, rental and advertising revenue.
Group operating profit declined 3.5% to $40.6 million in 20 FY2013 due to higher losses from Bus and higher operating expenses in MRT, mitigated by better performance from Circle Line, Taxi and Rental. Group operating profits remained flat at $84.5 million in 1H FY2013.
Group net profit was lower at $33.3 million in 20 FY2013 compared to 20 FY2012 and marginally higher by 1.3% at $69.8 million in 1H FY2013 compared to 1H FY2012.
1 Ali figures are quoted in Singapore dollars.
2 Excludes intangible asse!.
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SMRT Corporation Ltd
EBITDA increased 7.6% to $78.7 million in 2Q FY2013 while EBITDA margin maintained at
28.0%. EBITDA increased 9.3% to $158.2 million in 1H FY2013 on higher EBITDA margin of
28.4% compared to 28.1% a year ago.
The Board has declared an interim dividend of 1.50 cents per ordinary share.
The Group is in a net debt position of $28.6 million as at 30 September 2012 compared to net cash of $45.3 million as at 31 March 2012 due to lower cash level of $121.4 million, having paid $86.7 million in dividends and $123.9 million in capitai investments, offset against operating cash inflow of $134.6 million. Group borrowings remained at $150 million, representing a net gearing of 4%, before taking into account the $450 million bond issues in October 2012.
OPERATING PERFORMANCE BY BUSINESS
Financials by Business Segment | ||||||
Revenue | Operating Profit | |||||
S$m | 2QFY13 | 2QFY12 | % Change | 2QFY13 | 2QFY12 | % Change |
Train | 154.5 | 140.9 | 9.7 | 24.3 | 22.8 | 6.5 |
LRT | 2.7 | 2.5 | 6.6 | (0.1) | {0.1) | 3.1 |
Bus | 56.8 | 55.8 | 1.8 | (6.6) | (2.6) | (157.4) |
Fare Subtotal | 213.9 | 199.2 | 7.4 | 17.5 | 20.1 | (12.8) |
(12.8) | ||||||
Taxi | 33.2 | 28.9 | 14.8 | 1.3 | 0.1 | 818.5 |
Rental | 22.0 | 20.1 | 9.7 | 17.2 | 16.0 | 7.4 |
Advertising | 7.2 | 7.1 | 2.2 | 4.1 | 4.6 | (9.4) |
Engineering & Other Services | 4.9 | 5.9 | (17.8) | 0.6 | 0.9 | (32.0) |
Non-fare Subtotal | 67.3 | 61.9 | 8.6 | 23.2 | 21.6 | 7.7 |
Total* .. | 281.2 | 261.1 | 7.7 | 40.6 | 42.1 | (3.5) |
*after consohdatron ehmrnatr on & adJustments
Fare revenue rose 7.4% to $213.9 million on higher Train and Bus ridership (train and bus ridership up 7.3% and 3.3% to 175.6 million and 85.9 million, respectively). Train profit rose
6.5% to $24.3 million with higher revenue and lower energy cost, partially offset by higher
repairs and maintenance, depreciation and staff costs. However, Bus operating losses increased to $6.6 million from $2.6 million a year ago with increased staff costs resulting from higher basic salary for bus service leaders and increased headcount, depreciation of a larger fleet and repairs and maintenance. Fare operating profit declined 12.8% to $17.5 million as a result of increased Bus losses.
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SMRT Corporation Ltd
Rental profit rose 7.4% to $17.2 million as average lettable
area increased 6.5% to 34,860 sqm with new and redevelopment
of commerciai spaces at various stations. Advertising profits
declined 9.4% to $4.1 million as operating costs
outpaced higher revenue. Taxis maintained its
positive performance as profit rose to $1.3 million from $0.1
million in 20
FY2012 with a 14.3% increase in taxi fleet to 3,559
taxis.
Details of the operating metrics are shown in the
Annexon page 5.
SMRT's President and Chief Executive Officer, Mr Desmond Kuek, said: " We are encouraged by the Circle Line's improving performance as we/1 as continued growth from the Non-fare segment. The viability of the bus business however remains challenging with another quarter of /osses.
Looking ahead, we expect revenue growth to continue, but cost pressures wi/1 remain with higher staff, depreciation, and repair and maintenance costs for our trains and bus businesses. This is to be expected with a larger train fleet and stepping up of efforts to maintain reliability of an ageing rail network; as we/1 as taking over of certain operating assets from LTA."
Subsequent to the close of the quarter, the
Group raised $450 million fixed rate notes in October 2012 to
finance capitai expenditure, business expansion and generai
working capitai of the Group. The bond issue
together with the Group's strong operating cashflow will
be sufficient to meet its capitai expenditure
needs for the rest of FY2013.
SMRT has applied to LTA for asset replacement grants and
funding for renewal of part of the rail infrastructure under
its $900 million asset renewal pian as announced earlier.
Under the License and Operating Agreement for the NSEWL, SMRT
is responsible to maintain, repair,
replace, renew or refurbish ali or any part of the operating
assets for the train system and can apply to LTA for asset
replacement grants for eligible operating assets. Such grants
and funding will mitigate the
impact of the asset renewal pian.
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SMRT Corporation LtdEnclosures:
1) Unaudited Financial Statements for 2QFY13 ended 30 September 2012
2) Presentation for Te/econference Briefing: 2QFY13 Financia/ Results
3) Speech by Desmond Kuek, President and Chief Executive Officer and Catherine Lee, Executive Vice President and Chief Financial Officer, SMRT Corporation, at Analysts and Media Briefing on Second Quarter ended 30 September 2012
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OPERATING METRICS
2QFY13 2Q13 vs
2Q13 VS
ANNEX1H13 vs
Train
2QFY12 1QFY13
2Q12 (%)
1Q13 (%)
1H2013
1H2012
1H12 (%)
-
1 An average of estimated maximum half-hour pax load per car during peak hours for selected stations along North-South East-West line and Circle Une.
2 As different vehicle types have different capacities,the average occupancy rate of buses is expressed as load factor.
3 Figures relate to spaces at MRT stations only.
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