Hong Kong’s MTR Corp. made HK$6 billion profit in first half of 2024 driven by ridership, property growth
Hong Kong Free Press
Hong Kong’s MTR Corporation has reported a net profit of HK$6 billion for the first half of this year, an almost 45 per cent year-on-year increase thanks to a recovery in ridership and growth in property income.
The number of passengers rose 4.1 per cent to 957 million people in the first six months of 2024, mainly due to a large increase in people using cross-boundary services and high-speed rail connections with mainland China, according to a mid-year report released on Thursday.
The recovery in ridership turned a HK$774 million loss for transport operations in the first half of 2023 to a HK$415 million profit over the same period this year.
Property development profits also saw strong growth with a 142 per cent increase to HK$1.7 billion, largely driven by property projects such as Southside in Wong Chuk Hang and new developments at Lohas Park.
While the net profit of HK$6 billion “does not represent a full return to pre-pandemic levels, it does demonstrate good improvement over last year,” the railway operator’s financial director Michael Fitzgerald said.
CEO Jacob Kam said the corporation would “exercise prudent financial management to support … sustainable development” of the company and Hong Kong, adding that investment of over HK$100 billion for railway construction is in the pipeline.
“We are adopting a forward-looking approach to consolidate our financial strength, ensuring we have sufficient financial resources to expand our railway network and maintain high-quality services amidst the new normal and increased competition,” he said.
Asked if the transit firm would offer more ticket concessions to residents given the increased profits, Kam said the MTR Corporation had been offering discounts and other concessions from time to time and it would continue to do so.
The CEO also said the railway operator had been studying the possibility of a new station along the East Rail Line in response to a newly-unveiled development project in Pak Shek Kok. The Development Bureau on Wednesday said the project would offer approximately 10,000 residential units.
David Tang, the property and international business director of the MTR Corporation, said a preliminary report on the matter could be expected by the end of this year.
The proposed interim dividend stands at 42 cents per share.
The government owns a majority stake in the MTR Corporation, though it is independently managed on a commercial basis.
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