MTR Corp sinks to HK$334m loss, transport revenue falls sharply

Rail operator MTR Corp, whose transport operations were heavily impacted by anti-epidemic measures such as school closures and work from home plans, reported a loss of HK$334 million for the six months ended June 30, compared with a profit of HK$5.5 billion the year before.

It was MTR Corp's first loss since its listing.

Revenue tumbled by 23.6 percent on-year to HK$21.59 million. Revenue from Hong Kong transport operations shrank by 41.7 percent on-year to HK$6.23 billion.

Patronage of local services slumped by 33.3 percent, from the year before, to 553.6 million. Airport Express suferred with just 2.1 passengers, down by 77 percent.

MTR Corp declared an interim dividend of HK$0.25 per share.

Profit from property development surged by 571 percent on year to HK$5.20 billion.

“In response to this challenging situation, we have taken a number of cost control measures to reduce the financial damage, including a recruitment freeze and cutting of overhead expenditures,'' the Chief Executive, Jacob Kam Chak-pui, said.

Transport operations operating loss before interest and finance charges and after variable annual payment was HK$2.57 billion.