Business & Economy Despite making $109 million in profit, SMRT worries about downward fare adjustments

Despite making $109 million in profit, SMRT worries about downward fare adjustments

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Yesterday evening, SMRT reported its fourth-quarter and full-year earnings for its fiscal year ended 31 March 2016. The public transport operator reported that its revenue for the quarter rose 3.7 percent year-on-year to $342.8 million.
For the full fiscal year, revenue ended at $1.3 billion, up 6.2% from a year ago. Its net profit for the same period was $109.3 million, a 20.1% improvement from FY2015.
Revenue from the rail segment was up 4.1 percent from a year ago, and brought in $681 million in revenue for FY2016. LRT operations which come under this segment however affected its operating profit, causing it to fall 22.5 percent.
SMRT warned that “the current rail operating landscape continue to be challenging” as a result of fare adjustments failing to keep pace with an increase in operating costs.
The recent death of two of its maintenance staff as well as the three train disruptions in as many weeks has brought the public transport company under intense scrutiny of the general public.
The company has not released its Annual Report yet but according to its Annual Report from 2015, SMRT’s chief executive Desmond Kuek, 53, earned more than $2.25 million in that year. And more than 60 percent of his income is variable and performance related.

from page 83 of SMRT's Annual Report
from page 83 of SMRT’s Annual Report

The amount is double what he made when he first joined SMRT in October 2012. His predecessor, Saw Phaik Hwa, made about $1.85 million before she left in 2012.

SMRT’s media release here: https://smrt.com.sg/Portals/0/Announcement/2016/Media%20Release.pdf

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