BTS’ Profit Drops by 50% to ฿443M as Ridership Falls during Pandemic while Expenses Rise
BTS’ Profit Drops by 50% to ฿443M as Ridership Falls during Pandemic while Expenses Rise.
BTS’ Profit Drops by 50% to ฿443M as Ridership Falls during Pandemic while Expenses Rise.
14 ส.ค. 2563

BTS Group Holdings Public Company Limited (BTS) has reported its 1Q20, ended June 30, 2020, consolidated financial statement through the Stock Exchange of Thailand as follows;

BTS reported a net profit of 443 million baht in 1Q20, decreased 50% compared to a net profit of 893 million baht in 21Q19.
BTS reported total consolidated revenues from continued operation of THB 10,770mn in 1Q 2020/21. This represented an increase of 22.9% or THB 2,009mn YoY from THB 8,761mn in 1Q 2019/20. The increase in total revenue was predominantly due to (i) higher revenue from installation and construction services and train procurement services of THB 1,912mn, mainly due to higher recognition of services revenue from the provision of E&amp;M works and the train procurement service for the Northern Green Line extensions, as well as construction revenue for the Pink and Yellow Lines, and (ii) an increase in dividend income of THB 121mn.
Nonetheless, the increase in revenue was partly offset by lower service and sales income of THB 90mn, mostly from reduced performance in Media business despite the increase in revenue from providing train operation services in this quarter.
 
BTS stated that the mass transit business remained significantly affected from the COVID-19 pandemic in this quarter. Ridership in the Core Network during 1Q 2020/21 (April to June 2020) reached 18.5mn trips, dropping by 69.0% YoY and 63.4% QoQ. However, during the same period, O&amp;M revenue continued to grow to THB 1,153mn, increasing by 38.9% YoY thanks to the opening of new Green line stations. Construction of the Pink and the Yellow line continued as planned, translating into construction revenue of THB 4.9bn in this quarter.
 
On the Media side, the overall performance was significantly affected by the aforesaid pandemic, which started in early 2020. The temporary halt in daily mobility and economic uncertainties led several companies to react rapidly and reduce their advertising spending in an unprecedented scale, which significantly affected the OOH Advertising business. Digital Services business was also affected by the lockdown measures particularly in offline payment where a physical transaction is required.
The impact was partially offset by online payment which benefited from more online transactions. The Logistics business witnessed rapid growth thanks to a huge surge in online shopping resulting from the stay-at-home and lockdown orders. VGI operating revenue declined by 50.6% YoY to THB 445mn in 1Q 2020/21, with its OOH Advertising revenue contributing 60%, and Digital Services revenue contributing 40% of its total revenue.
 
Total consolidated expenses from continued operation amounted to THB 8,978mn in 1Q 2020/21, an increase of THB 1,615mn or 21.9% YoY largely from higher costs related to the provision of E&amp;M works and the train procurement service for aforementioned Northern Green Line extensions, and costs related to the construction of the Pink and Yellow lines, as well as higher cost of service and sales of THB 105mn.
 
Total operating costs also increased in line with the increase in total operating revenue, rising by 20.4% or THB 1,414mn YoY to THB 8,341mn. The increase was primarily from higher costs of the provision of E&amp;M works and the train procurement service for Northern Green Line extensions as well as higher construction costs for the Pink and Yellow Lines. Operating gross profit dropped by 7.4% or THB 111mn YoY to THB 1,384mn.