SMRT has reported a 25.6 per cent drop on-year in net profit to S$34 million for the quarter ended September 30.

This was attributed to higher total operating expenses.

Group revenue increased by 6.1 per cent to S$261 million compared to the same period a year ago.

This was attributed mainly to higher MRT and bus ridership, contribution from Circle Line, higher taxi rental revenue, increase in external fleet maintenance revenue and higher rental and advertising revenue.

An interim ordinary dividend of 1.75 cents per share tax exempt has been declared.

Going forward, SMRT expects group revenue to be higher in the third quarter of 2012 as compared to the corresponding period last year due to expected increase in ridership.

The average weekday ridership for Circle Line is said to have increased to about 300,000.

However, it said that profitability for 2012 is unlikely to be maintained at previous year’s level due to the increase in operating costs.

SMRT president and CEO, Saw Phaik Hwa said: “Looking ahead, we expect an increase in fare revenue due to higher ridership on existing lines and increased ridership due to the opening of Circle Line Stage 4 and 5. However, profitability will be impacted by higher operating costs, particularly energy cost.”

Source: CNA