MTRC's net slumps 11pc

MTR Corporation (0066) saw its first-half net profit slump by 11.7 percent to HK$4.18 billion as profit from property development sank but kept the interim dividend remained unchanged at 42 HK cents.

Profit from recurrent businesses during the period was HK$2.42 billion, compared to a loss of HK$678 million a year ago, due to higher patronage from the removal of anti-pandemic measures, the railway operator said.

But profit from property development plunged by over 90 percent to HK$732 million from a high base last year. Total revenue, meanwhile, surged by 19.7 percent to HK$27.6 billion.

Revenue from transport operations soared by 60.7 percent to HK$9.34 billion as patronage rose 41.7 percent to 920.1 million. Patronage of domestic service has returned to over 90 percent of the pre-pandemic levels and that of cross-boundary service and airport express to over 60 percent, while passenger numbers of high-speed rail have exceeded the figure recorded pre Covid, MTRC said.

Sales from station commercial businesses increased by 63.1 percent to HK$2.4 billion driven by the rebound of the duty-free business following the border reopening.

Turnover of the property rental and management segment grew by 6.5 percent to HK$2.46 billion, mainly due to lower rental concessions provided to tenants but partially offset by negative rental reversions.

The rental reversions of its station shops and shopping malls were negative 8.4 and negative 12.6 percent, respectively, but the figures have stabilized, the rail company said.

Their occupancy rates as of the end of June were 97 percent and 99 percent, respectively.