SMRT says net profit for third quarter FY2011 (3QFY2011) grew by 9.6% to $43 million on account of higher revenue and absence of impairment of goodwill, although this was partially offset by higher operating expenses.

Group revenue for the third quarter increased by $19.1 million or 8.5% to $243.9 million.

Revenue from Train operations increased by $11.0 million (9.0%) in 3Q FY11 as a result of higher MRT ridership, partially offset by lower average fare for MRT due to the implementation of distance fares. In addition, the opening of Circle Line Stages 1 and 2 contributed to the increase in revenue.

Revenue from Bus operations improved by 7.8% to $52.7 million in 3Q FY11 compared to the previous corresponding period due mainly to higher ridership, partially offset by marginally lower average fare.

Taxi rental revenue increased by 4.4% to $18.5 million in 3Q FY11 due mainly to improved hired- out rates and larger average hired out fleet.

Rental revenue grew by $1.8 million (10.7%) to $18.7 million in 3Q FY11 as a result of increased space following the redevelopment of commercial spaces at various MRT stations.

Advertising revenue increased by 4.9% to $6.5 million in 3Q FY11 on a year-on-year basis and quarterly profit was 9.4% higher at $4.8 million due mainly to increased advertising on trains, MRT stations and buses.

Revenue from Engineering and Other Services was 11.5% higher at $12.4 million and quarterly operating profits increased by 5.3% to $3.7 million in 3QFY11. This was due mainly to increased contribution from consultancy and fleet maintenance revenue, partially offset by lower revenue from Palm Jumeirah.

SMRT says outlook in the next quarter and 12 months ahead for Train operations and the group is expected to remain challenging with continuing losses from Circle Line and volatility in both diesel and electricity prices.