BTS’ FY19/20 Earnings Soar 184% to ฿8.1Bn, Offering ฿0.15 Dividend Payment

BTS Group Holdings Public Company Limited (BTS) has reported its 2019 yearly consolidated financial statement ending March 31, 2020, through the Stock Exchange of Thailand as follows;

BTS reported a net profit for 2019 yearly consolidated financial statement ending March 31, 2020, at 8,161 million baht, increased 184% when compared to a net profit of 2,872 million baht in 2018. The growth was mainly attributable to the gain from the sale of Bayswater Land by BTS Group, higher recurring gross profit and an increase in the share of net profit from associates/JVs.

 

BTS reported total consolidated revenues from continued operation of 42,203 million baht for the period, representing a decrease of 10.8% or 5,096 million baht YoY from 47,299 million baht in FY 2018/19. The decline in total revenue could be attributed to a decrease in revenue from installation and construction services and train procurement services of 10,762 million baht, mainly due to lower recognition of construction revenue for the Pink and Yellow Lines.

Nonetheless, the decline in revenue was partly offset by (i) an increase in gain from sales and changes in value of investments of 3,194 million baht, predominantly from the gain on sale of Bayswater, (ii) higher service and sales income of 1,693 million baht from the full commencement of the Southern Green Line extension and (ii) an increase in interest income of 515 million baht.

 

Total consolidated expenses from continued operation amounted to 32,726 million baht in FY 2019/20, a decrease of 9,307 million baht or 22.1% YoY ,largely from the reduced recognition of construction cost for the Pink and Yellow Lines. Nevertheless, the decrease in expenses was partially offset by an increase in cost of services and sales of 1,108 million baht,and higher selling and administrative expenses of 625 million baht.

 

Total operating revenue in FY 2019/20 reached 39,937 million baht, a decline of 16.8% or 8,067 million baht YoY. Revenues from the Mass Transit, Media, Property and Services businesses accounted for 80%, 15%, 1% and 4% of total operating revenue, respectively. The decline in operating revenue was chiefly a result of lower Mass Transitrevenue, which declined by 22.4% or 9,252 million baht YoY due to reduced recognition of construction revenue for the Pink and Yellow Lines.

Despite this, the reduction in Mass Transit revenue was partly offset by an increase in services revenue for the provision of E&M works andtrain procurement service for the Southern and Northern Green Line extensions, higher O&M revenue, as well as higher Mass Transit related interest income during the year.

Moreover, operating revenue from Media, Property and Services operating revenues also further expanded by 10.2%, 5.8% and 57.0% YoY, respectively. The growth was largely attributable from (i) higher Media revenue, mainly driven by higher revenue from Digital Services segmentand (ii) increased construction revenue generated from HHT Construction Company Limited of 694 million baht.

 

Operating costs also decreased in tandem with the decrease in total operating revenue, dropping by 24.4% or 9,777 million baht YoY to 30,343 million baht,primarily from lower construction costs for the Pink and Yellow Lines. Operating gross profit grew 21.7% or 1,710 million baht YoY to 9,595 million baht and operating EBITDA rose by 1,323 million baht or 21.6% YoY to 7,460 million baht.

As a result of the reduced recognition of the aforesaid construction revenue for the Pink and Yellow Lines,which has lower margin, operating gross profit margin increased to 24.0% from 16.4% in the prior year and operating EBITDA margin increased to 18.7% in FY 2019/20 from 12.8% in FY 2018/19.

 

In addition, BTS’ Board of Directors approved the dividend payment of ฿0.15/share on August 14, 2020. The ex-dividend date is July 29, 2020.