BTS Reports a 120% Rebound QoQ, Booking Income from One-Time Gain and Business Disposals

BTS Group Holdings Public Company Limited (BTS) has reported its third-quarter consolidated financial statement ending 31 December 2020 through the Stock Exchange of Thailand as follows;

In 3Q20, BTS reported a net profit of 1,686 million baht, decreased 31.45% from a net profit of 2,459 million baht in 3Q19, but increased 120.4% from the previous quarter. The QoQ improvement was largely from (i) the one-time net gain from sale of Thana City Land by BTS Group, (ii) improved media performance and positive benefits from the IPO of KEX by VGI, (iii) gain from U City’s disposal of all ordinary shares in 9 joint ventures to Sansiri in November 2020. Yet, partially offset by the recognition of U City’s impairment of assets (which was recorded under share of loss from investment in U City).

However, net profit decreased by 31.5% or 774 million baht YoY mainly from no repeat recognition of the gain from sale of Mo Chit Land by U City in 3Q 2019/20 and weakened operating performances across Media and Property businesses which were as a result of the COVID-19 crisis.

 

BTS reported total consolidated revenues from continued operation of 11,946 million baht in 3Q 2020/21. This represented an increase of 13.6% or 1,434 million baht YoY from 10,513 million baht in 3Q 2019/20. The increase in total revenue was chiefly attributed to (i) gain on sale of land of 1,979 million baht, resulting from the gain on sale of Thana City Land and (ii) gain on sales of changes in value of financial instruments of 146 million baht.

Nonetheless, the increase in revenue was partly offset by lower revenues from contracting works of 740 million baht, chiefly owing to reduced recognition of revenue from the provision of E&M works and the train procurement service for the Green Line extensions.

 

In 3Q 2020/21, the company recognised share of profit from investment in BTSGIF of 130 million baht, declining by 37.2% or 77 million baht YoY, following a decrease in quarterly farebox revenue of the Core Network (down 35.7% or 648 million baht YoY to 1,168 million baht). The decrease was from lower quarterly Core Network ridership (down 37.4% YoY to 39.4 million baht trips) as a result of the effect from the COVID-19 pandemic. Nonetheless, the decrease in quarterly farebox revenue was offset by an increase in average fare of 1.1% YoY to 29.6 per trip predominantly from the removal of the discount on stored value card to be the same fare as single journey card since April 2020.