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SMRT Trains, a subsidiary of Singapore’s Temasek Holdings, saw its financial performance impacted by a six-day disruption on the East-West Line (EWL) in September 2024, which led to an 8% dip in its profit after tax for the 2024/2025 financial year.
Key Points:
- Profit After Tax: SMRT Trains reported a net profit of $6.9 million for FY2024/2025, down from $7.5 million in the previous year, marking a 21% decline in earnings.
- Revenue Growth: Despite a 4% increase in revenue, rising to $918.2 million (up from $886.7 million), the disruption significantly impacted the income from its rail operations.
- EWL Breakdown Impact: The six-day breakdown from Sept 25-30, 2024, which affected one in six daily train trips, resulted in a loss of income. To mitigate the inconvenience, SMRT offered free travel at Jurong East and Buona Vista stations.
- Cost-Saving Measures: SMRT implemented staff productivity initiatives, saving over $165 million, including $50 million in electricity costs.
- Diversification Strategy: To expand beyond rail operations, SMRT is also venturing into new businesses, such as Strides Technologies and the development of driverless shuttles, slated for launch in early 2026.
EWL Breakdown Impact
The disruption during the six-day period on the East-West Line severely affected the train network, leading to operational disruptions and financial strain. The disruption directly impacted about one-sixth of daily train trips, reducing SMRT’s potential revenue from fares.
Performance Analysis:
- Revenue Growth: Despite the setback, SMRT saw higher average fares after a 6% fare increase in December 2024 and a growth in annual ridership, which increased from 726 million to 744 million.
- Cost-Saving Initiatives: SMRT’s ability to save over $165 million was key to offsetting some of the financial losses. This includes $50 million in electricity savings thanks to various efficiency measures.
Future Outlook:
- SMRT is diversifying its operations and innovating in technology. The company plans to introduce driverless shuttles by early 2026 and has already ventured into new business domains with the launch of Strides Technologies.
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