BTS’ 2Q Profit Drops 40% as Covid-19 Diminishes Operating Performance

BTS Group Holdings Public Company Limited (BTS) has reported its 2Q20 consolidated financial statement, ending September 30, 2020, through the Stock Exchange of Thailand as follows;

BTS reported a net profit of 764 million baht in 2Q20, decreased 40.13% from the same period of last year.

BTS reported total consolidated revenues from continued operation of THB 10,055mn in 2Q 2020/21. This represented a decrease of 10.5% or THB 1,183mn YoY from THB 11,238mn in 2Q 2019/20. The decrease in total revenue was predominantly due to (i) lower revenues from contracting works of THB 1,338mn, owing to reduced recognition of revenue from the provision of E&M works and the train procurement service for the Northern Green Line extension and (ii) a decrease in dividend income of THB 231mn.

Nonetheless, the decrease in total revenues was partly offset by increased interest income of THB 215mn as well as higher service and sales income of THB 171mn, mostly from increased revenue from provision of train operating services in this quarter.

 

Total operating revenue in 2Q 2020/21 stood at THB 8,910mn, a decrease of 8.4% QoQ and 17.0% YoY. Revenues from the Mass Transit, Media, Property and Services businesses accounted for 89%, 8%, 1% and 2% of total operating revenue, respectively.

Operating revenues from Mass Transit, Media, Property and Services declined by 6.6%, 55.8%, 55.3% and 59.7% YoY, respectively. The decline in operating revenue was from two main reasons; (i) lower operating performances affected by the COVID-19 pandemic, specifically Media, Property and Services businesses and (ii) reduced recognition of services revenue for the provision of E&M works and the train procurement service for the Northern Green Line extension, as we enter the tail-end of development.

Nonetheless, the decrease was partly offset by (i) higher construction revenue for the Pink and Yellow Lines and (ii) increased O&M revenue in this quarter.

 

The impact of the COVID-19 pandemic to BTS during 2Q 2020/21 diminished from the previous quarter, as seen from considerable growth in recurring EBITDA of 32% QoQ to THB 2,012mn and recurring net profit (after MI) of 63% QoQ to THB 751mn in this quarter. The improvement in the financial results was chiefly owing to the relieved domestic pandemic situation, largely thanks to the well managed and strict measures imposed by the government. From the well-controlled situation, many organisations started to resume their normal operations and people became more confident in daily traveling.

The Mass Transit business saw an improvement as reflected in a significant growth in Core Network ridership of 109.2% from the previous quarter, which we believe is the trough level of the year. Additionally, the latest average weekday ridership currently reached 70% of its precedent level and cumulative ridership during the first half 2020/21 (April – September 2020) has been recovering faster-than- expected.

 

BTS stated that on November 11, 2020, the company is included in the Thailand Sustainability Investment (THSI) list 2020 for the 2nd consecutive year. The THSI was created by the Stock Exchange of Thailand (SET) for listed companies with outstanding performance on ESG aspects. The award aims to drive companies towards sustainability to create long-term shareholders’ value.

Furthermore, on November 13, 2020, BTS is included in the Dow Jones Sustainability Indices (DJSI) 2020, in the Emerging Markets for 3 consecutive years. The company is ranked first globally in the DJSI Transportation and Transportation Infrastructure Sector this year.