Under the Republic's BCM scheme, the government owns all buses, bus infrastructure such as depots, as well as the fleet management system. The Land Transport Authority retains fare revenue but pays fixed fees and performance bonuses to bus operators including ComfortDelGro's 75 per cent-owned subsidiary SBS Transit.
She thus estimated that the"stable" overseas revenue contributions is set to overtake domestic revenue by around 2023, which will further improve earnings visibility and reduce earnings risks through increased diversity.The research team expects railway revenue to grow and Ebit loss from the railway business to narrow as its operating leverage improves.
ComfortDelGro runs four railway lines through SBS Transit: the North East Line, DTL, Punggol LRT and Sengkang LRT.