SINGAPORE (Nov 10): SBS Transit reported a 43.2% increase in 3Q16 earnings to $7.8 million from $5.5 million in 3Q15.

Revenue grew 4.8% to $274.7 million from $262 million in the previous quarter, mainly driven by its rail segment which reported higher revenue of $69.1 million, up 26.3% from a year ago.

Revenue from the Bus segment fell 0.8% to $205.6 million. Operating profit however increased 35.1% to $9.2 million due mainly to lower fuel costs, lower depreciation and lower other operating costs.

Revenue from the Rail segment rose 26.3% to $69.1 million due mainly to the increase in average daily ridership following the commencement of revenue service of Downtown Line (DTL) 2, but operating profit dipped 21.2% to $0.8 million due mainly to higher costs.

SBS Transit says it continues to expect rail ridership to increase, but warns that fare revenue will be affected by the 4.2% fare reduction which will take place effective Dec 30 next month.

It also anticipates higher staff costs to due to the salary adjustments announced in June this year.  

“For the DTL, we will continue to build up the staff strength in preparation for DTL 3. Repairs and maintenance costs are also expected to be higher as more such works are carried out in the rail segment,” says the group.

Shares of SBS Transit closed 2.8% higher at $2.21.