Commuters wear face masks as they travel on a MTR train in Hong Kong on July 29, 2020.
(ANTHONY WALLACE / AFP)
Hong Kong’s MTR Corporation bounced back with a net profit of HK$2.7 billion (US$347 million) in the first six months of the year, compared with a loss of HK$334 million during the same period in 2020, but warned that the recovery still has a long way to go to reach pre-pandemic levels.
Domestic patronage increased 16.7 percent year-on-year, after recovering to about 80 percent of pre-pandemic levels due to residents’ return to offices and schools, the relaxation of social distancing measures and the rollout of vaccinations, according to the public transport operator’s interim report on Thursday.
MTR Chief Executive Officer Jacob Kam Chak-pui said that the recovery still has a long way to go before rebounding to pre-pandemic levels despite the increase in revenue
However, revenue is still reeling from the continued border closure as the cross-border service, high-speed rail and intercity services remain suspended, dealing a heavy blow to the corporation’s commercial businesses, the operator added.
MTR Chief Executive Officer Jacob Kam Chak-pui said that the recovery still has a long way to go before rebounding to pre-pandemic levels despite the increase in revenue driven mostly by the spending of domestic patrons.
“The return of our Hong Kong patronage to pre-pandemic levels is dependent on economic recovery as well as the reopening of boundaries, and business normalization of our mall and station retail depends in large part on the return of the (Chinese) mainland and international visitors,” the company said in the same report.
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From January to June, MTR recorded recurring revenue at HK$22 billion, up 3.2 percent year-on-year. Profit from the operator’s recurrent businesses surged 110 percent year-on-year to HK$910 million. Limiting the gains, profit from property development shrunk by nearly 40 percent year-on-year to HK$3.1 billion, with most of that coming from LOHAS Park Package 8, a private residential project in Tseung Kwan O consisting of three towers of 49- to 55-storeys.
Looking ahead to the second half of 2021, the corporation said it expects to book profits from LOHAS Park Package 7 and Package 9 and plans to tender out three property development packages over the next 12 months, including the Tung Chung Traction Substation and Pak Shing Kok Ventilation Building projects, which altogether will supply approximately 2,150 residential units for the Hong Kong property market.
The MTR also declared an interim dividend of 25 HK cents per share, unchanged year-on-year. The company’s shares edged up 20 HK cents, or 0.45 percent, to HK$45 with a turnover of HK$104 million before the results were announced.
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