SINGAPORE: Public transport operator SBS Transit on Tuesday (Feb 25) reported a 2.1 per cent increase in group revenue to S$1.56 billion (US$1.17 billion) for 2024.
Group operating costs increased by 2.5 per cent to S$1.49 billion due to higher costs for manpower, premises, repairs and maintenance, as well as a higher rail licence charge and advertising concession fees.
These were offset by productivity savings, lower fuel and electricity costs, and lower depreciation expenses, SBS said in a press release on Tuesday.
The company posted an operating profit of S$73.2 million for 2024 – a 4.5 per cent decrease from the previous year.
It also recorded a net profit attributable to shareholders of S$70.3 million. This was a 1.8 per cent increase from the previous year.
SBS Transit Group CEO Jeffrey Sim said: “We expect demand for public transport services to grow. We remain focused on providing our passengers with safe, reliable and efficient commutes.”
The company's revenue from its public transport services business – comprising bus and rail services – increased by 2 per cent to S$1.5 billion in 2024.
The increase, which came mainly from higher rail ridership, was offset by lower bus revenue mileage.
Average daily ridership on SBS Transit's rail services grew across its three lines.
The North East Line saw an increase of 3.3 per cent to 589,000, while the Downtown Line recorded a 5 per cent rise to 465,000. The Sengkang-Punggol LRT reported a 1 per cent growth in average daily ridership to 161,000.
Operating profit grew by 33.8 per cent to S$53.8 million due mainly to higher revenue, productivity savings, and lower fuel and electricity costs. This was offset by higher staff costs and a higher rail licence charge.
Revenue from other commercial services increased by 5.1 per cent to S$59.7 million, due mainly to advertisers launching more digital campaigns.
Operating profit fell by 46.8 per cent to S$19.4 million, largely due to the advertising concession fee payable from Jan 1, 2024 and higher premises costs. This was offset by higher revenue.
"Operating costs continue to remain a challenge, even though cost increases are expected to be moderated with the easing of inflationary pressures and the tight labour market remains a concern," SBS Transit said.
Revenue from its rail operations is expected to grow marginally, with higher ridership and the fare adjustments that came into effect on Dec 28, 2024, the company said.
Bus and train fares went up by 10 cents per journey for adult commuters, while concession card holders such as students, seniors and people with disabilities saw their fares increase by 4 cents per journey.
Overall, fares went up by 6 per cent.
SBS Transit expects its bus operation revenue to decrease with the full-year impact of the expiry of the Jurong West bus package on Aug 31, 2024.
It was awarded the contract and will continue to operate the Seletar Bus Package on a new five-year contract, with an option for an extension of between two and five years.
Punggol Coast MRT station on the North East Line opened in December 2024 and the upcoming Hume station on the Downtown Line will start service on Feb 28.
SBS Transit also won the tender to operate and maintain the Jurong Region Line in partnership with French operator RATP Dev.
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