Ridership, property earnings boost MTR profits

The MTR Corporation on Thursday reported an almost 45 percent rise in first-half profit compared with the same period last year, mainly driven by a strong recovery in ridership and earnings from property development. But the railway firm conceded that passenger numbers have not returned to pre-pandemic levels, even after patronage jumped more than four percent to surpass 950 million in the six months ending June. Jacob Kam, the MTR's chief executive officer, said ridership had not been "very good" in the second quarter of 2024. "We believe there are many factors that would affect patronage, the overall economic situation, consumers' patterns, they all play a role," Kam said. "We will continue to be cautiously optimistic as the economy recovers. We hope that patronage will improve over time." In the first half of the year, the railway giant posted a net profit of HK$6 billion, up 44.7 percent from the same period in 2023. Total revenue rose 6.2 percent year-on-year to HK$29.3 billion. And the MTR proposed an interim dividend of HK$0.42 per share, same as the year before. The firm also reversed its HK$774 million Hong Kong railway business loss into a profit of HK$415 million, while earnings from property development more than doubled to HK$1.74 billion. "We are making progress on 14 residential property projects. We will continue to explore property development opportunities along our existing and future railway lines, making optimal use of all land resources," Kam added. Asked if the firm will roll out more discounts for commuters, he said the corporation has to invest more than HK$100 billion for its projects in the future, and that it has to be prudent with its finances. Separately, the railway giant is looking to tender the Tung Chung East project again after it failed to receive any bids last year. "We are actively studying our projects and we are looking at our tender strategy. Subject to market conditions, we shall continue to orderly tender out our land parcels, in order to meet with the demands of Hong Kong," said David Tang, the firm’s property and international business director. As for a land use study near Pak Shek Kok, the corporation said the assessment, which includes the possibility of constructing a new station along the East Rail Line, is still ongoing.