Smrt enjoys 37% rise in profits in q1 thanks to fare hikes

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SMRT ENJOYS 37% RISE IN PROFITS IN Q1 THANKS TO FARE HIKES

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30 Jul 2014 - 9:45pm








SMRT Corp explained today that it saw a fiscal first quarter net profit increase of 36.8% compared to the same time last year.

Its total profits for the three months ended June were $22.4 million. The total revenue for the three months from April to June rose 4.3% to $297.1 million.

This increase in SMRT profits co-insides with the public transport Fare Hikes which occurred at the start of April.

However, SMRT insisted that they are still making losses on Fares with a $1.1 million loss for the quarter. This is better than the $5.5 million loss that they saw in the fare business at the same time last year.

SMRT enjoyed more passengers on their trains with a 1.9% increase and operating profits jumping 73.4% thanks to the increased fares and lower electricity costs.

SMRT's taxi business also saw a huge improvement with a 84.5% profit surge to make $4.2 million. This was mainly thanks to the higher taxi rental fees that they charged to their drivers with the new fleet.

Despite the high profits that SMRT had obviously enjoyed, it appears that they will continue to put more pressure on average Singaporeans' pockets as they said that they are still facing "challenges" with its fare business.

Meanwhile, they are also talking with the government for a new rail financing framework to be extended to all their lines so that the government can absorb their high costs.


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