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Coffeeshop Chit Chat - SMRT made $100M profit from commuters</TD><TD id=msgunetc noWrap align=right>
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</NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>10:54 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 2) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>23599.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD>SMRT's interim net earnings cross $100m mark
</TD></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- Author --></TD></TR><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TRANSPORT operator SMRT is on the way to matching bigger player ComfortDelGro in profits.
In the first half ended Sept 30, SMRT posted a 21.9 per cent rise in net earnings after tax to $101 million - the first time it has crossed the $100 million mark at the interim.
This was on the back of a 0.5 per cent rise in revenue to $445.3 million, mainly from higher MRT ridership, which was boosted by the commencement of Circle Line Stage 3.
Lower energy costs, government budget measures and tighter control of expenses helped bolster the bottom line.
All of SMRT's business units were in the black - even its long-suffering bus and taxi operations.
Buses turned in an operating profit of $3.05 million while cabs posted $1.89 million. They saw $4.5 million and $1.8million in losses, respectively, in the same period last year.
Rental of retail space at SMRT stations continued to shine. The non-transit division reported an operating profit of $25.2million for the six months, up from $22.6 million last year.
The group leased out more than 29,000 sq m of space. When the city stretch of the Circle Line opens in the middle of next year, SMRT will have even more retail space - the 2,000 sq m Esplanade Exchange.
Chief financial officer Lim Cheng Cheng said the group's newly acquired Chinese transport firm, Zona, is expected to show material profit contribution in about five years' time.
Chief executive Saw Phaik Hwa described the first-half performance as 'a reasonable set of results'.
But she warned of choppier times ahead, saying profitability 'will continue to be impacted by the fare reduction package ending next June, lower Jobs Credit, volatility in diesel prices and ramp-up costs' of the Circle Line.
The group's contracted electricity rates will be 11 per cent higher in the second half.
Analysts do not expect SMRT to reap profits from the Circle Line any time soon. The orbital line will incur higher manpower costs but ridership is not expected to be commensurate.
However, some observers reckon the Circle Line, which links mature residential estates, will feed more people into its network.
The rail business continued to be the company's main profit churner, accounting for $75.4 million of its total operating profit of $121.05 million.
SMRT shares closed one cent up at $1.68 yesterday.
[email protected]
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</TD></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- Author --></TD></TR><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Christopher Tan, Senior Correspondent
</TD></TR><TR><TD><!-- show image if available --></TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->TRANSPORT operator SMRT is on the way to matching bigger player ComfortDelGro in profits.
In the first half ended Sept 30, SMRT posted a 21.9 per cent rise in net earnings after tax to $101 million - the first time it has crossed the $100 million mark at the interim.
This was on the back of a 0.5 per cent rise in revenue to $445.3 million, mainly from higher MRT ridership, which was boosted by the commencement of Circle Line Stage 3.
Lower energy costs, government budget measures and tighter control of expenses helped bolster the bottom line.
All of SMRT's business units were in the black - even its long-suffering bus and taxi operations.
Buses turned in an operating profit of $3.05 million while cabs posted $1.89 million. They saw $4.5 million and $1.8million in losses, respectively, in the same period last year.
Rental of retail space at SMRT stations continued to shine. The non-transit division reported an operating profit of $25.2million for the six months, up from $22.6 million last year.
The group leased out more than 29,000 sq m of space. When the city stretch of the Circle Line opens in the middle of next year, SMRT will have even more retail space - the 2,000 sq m Esplanade Exchange.
Chief financial officer Lim Cheng Cheng said the group's newly acquired Chinese transport firm, Zona, is expected to show material profit contribution in about five years' time.
Chief executive Saw Phaik Hwa described the first-half performance as 'a reasonable set of results'.
But she warned of choppier times ahead, saying profitability 'will continue to be impacted by the fare reduction package ending next June, lower Jobs Credit, volatility in diesel prices and ramp-up costs' of the Circle Line.
The group's contracted electricity rates will be 11 per cent higher in the second half.
Analysts do not expect SMRT to reap profits from the Circle Line any time soon. The orbital line will incur higher manpower costs but ridership is not expected to be commensurate.
However, some observers reckon the Circle Line, which links mature residential estates, will feed more people into its network.
The rail business continued to be the company's main profit churner, accounting for $75.4 million of its total operating profit of $121.05 million.
SMRT shares closed one cent up at $1.68 yesterday.
[email protected]
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