Commentary on Profit Before Tax (PBT)
Full Year 2003 vs Full Year 2002
Group PBT for the year ended 31 decembere 2003 declined by 40.9% or
$17.7m to $25.7m compared to $43.4m for the corresponding period
last year. PBT for the Transport Business
decreased by 64.8% or $13.4m to $7.3m mainly due to the lower bus
fare revenue as a result of SARS outbreak and rationalisation of
bus routes, restructuring costs, write-down of rail development
costs and rail revenue being insufficient to cover the operating
expenses. These were partially offset by lower bis operating
costs and a payment for rail commissioning costs from LTA. PBT for
Advertisement Business of $13.2m was 31.55 or $6.1m lower than last
year due to weak market conditions and keen competition. Other
income of $5.1m was 54.9%or $1.8m higher than last year mainly due
to rental incomefrom the lease of commercial space in North-East
Line (NEL) MRT and Sengkang LRT stations, offset by lower
investment income.
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If they keep different accounts for both rail and bus, it may not
justify an increase in bus fare. Should bus commuters cross
subsidised trains passengers???
From its fanancial report, there is an increase of 41% in fuel cost
to $54 638 000, SBST must not use that as an excuse to up bus fare!
On the other hand, it should expain why is there a 92.6% jump in
'Others Operating Expenses' to $101 808 000 and what constitutes
'Others Operating Expenses'!!!
We must pre-empt any moves by our monopolised bus companies to up
their bus or train fares.
Companies are now riding along better economic sentiments to up
their charges. MCDS might again to propose its earlier failed
increase in entry to Public Swimming Pools.
