02 May 2013

SMRT Losing Money


On 30 Apr 2013, SMRT posted a whopping S$12.049 million loss for the period of Jan 2013 to Mar 2013 and today, the market responded to that and their stock price dropped more than 4% to close at S$1.415, lowest point since Jun 2009.

I looked closely at their financial statement and their staff costs caught my attention. From Apr 2012 to Mar 2013, they spent S$395.161 million on staff costs, for the same period one year earlier, they spent S$340.141 million on staff costs, that's a S$55.02 million difference.

Now we look at all of their expenses, from Apr 2012 to Mar 2013, they spent a total of S$1045.569 million, compared to the same period one year earlier, S$930.588 million, S$114.981 million difference.

55.02 / 114.981 * 100 = 47.85%

Just the staff costs alone takes up a massive 47.85% of their total increased expenses! If I remember correctly, I think they started to assign more staff at each of their stations in Jan 2012, after the chain of train disruptions in Dec 2011, but 55 million dollars is too much isn't it? What kind of staff costs are we looking at?

Those of you who wanted to enter, hold on, wait and see what the government has to say since SMRT asked for their help.

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