31 July 2014

SMRT Quarterly Report Media Release - July 2014





Outlook and Prospects


My Notes

It seems that SMRT is taking larger portion of net profts from non-fare business such as advertising board and shop lots leasing along the bus stations & MRT stations. SMRT plays a vital role in supporting public transport systems, but it is setting a loss in bus operation. It means that current model is not sustainable and they have to discuss with authorities on a new business model (which they already did).

With a new business model (could be sale & lease back all the assets related to bus and MRT operation), it could be an asset light model and the group could focus more on operation instead of worrying the cash flow issue in maintaining huge non current assets.

Let's hope for a better output after the discussion with government.



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