There are so many analysis done that covers the rising profits and it is unfair to increase fare on the commuters. After all, half the commuters are not Singaporeans, they are foreigners. Please stop making a nuisance of yourself and look at other perspectives. Do think of other needs, and not just yourself. Don't be SELFISH.
Let us talk about things that really matter, the ignored people who are suffering from our unfulfilled expectations. Don't ignore the SHAREHOLDER'S PERSPECTIVE.
THE SHAREHOLDER
First let us understand what is a shareholder. They buy a share of a company stock, thus own a part of the company. They would want the value of the stock to increase, thus wealthier from owning the stock. They may also receive dividends, or a share of profits, for owning the stock.
Thus it is in the interest of the shareholder to look at the way the company is run and make sure their interest is looked after. The major shareholder may also place their trusted deputies in the board of directors to ENSURE that their interests are indeed taken care of.
So the view of profits is not the only way to look at a company's performance. It is the dividends that matters. Any investor would say this same point.
REVIEW OF PERFORMANCE
Look at the revenue increase by 5.9%. It seems good to have more revenue, but more profits is better.
Operating profits has been in the $190M range. Even in the depressed year, 2009, it is doing well. But in 2012, it took a hit to $148M. That is a bad 24% drop in profits. Now in 2013, it is another 26% drop in profits. If use the range we are used to see in 2010, that is 44.1% drop in profits.
Just looking at profits after tax (PATMI), that is a whopping 49% drop! That is where our dividends will come from. Look at EVA, that is a 54% drop.
Dear CEO, this is not a good performance. Do something about it!
DIVIDENDS RECEIVED IS VERY LOW
2010 was the dividends received at 79% of PATMI. That is $129M out of $162.9M. This year is very bad! It is $38M dividends paid out of $83.3M. Not only is the PATMI low, the pay out is even lower at 45%.
Look forward to your corrective action to bring back the dividends expected. CEO, do something about it ... get the authorities in charge to say something.
REMEMBER WHO OWNS THE LARGEST STOCK
Must it be mentioned again that 54% of SMRT is owned by Temasek Holdings. That means the government of singapore owns you. Never mind the noisy Singaporeans, they are the least of anyone's concern. They will at most complain but would not protest. If they protest in Hong Lim Park, they can gather only 3000 protestors. And they come with umbrellas and picnic mats, very pathetic lot. They pose no concern.
The commuters are more important, and they are inded mostly foreigners. They are your tourists, casino gamblers, foreign PMETs, construction workers, some interesting prostitutes for geylang and karaoke bars etc ... They have no choice and will definitely accept the fare increase.
INCREASE THE FARES TO SAVE OUR DIVIDENDS !
REFERENCE
Singapore Singaporeans