MTR Corp profits drop to HK$4.64 billion as income from Shenzhen project drops off

10-Aug-2018 Intellasia | South China Morning Post | 6:02 AM Print This Post

Amid an unfolding construction scandal, MTR Corporation revealed on Thursday its underlying profit dropped 20.5 per cent to HK$4.64 billion (US$591 million) in the first six months of this year under the weight of lower property income.

The train services operator said revenue dipped 12.1 per cent to HK$26.37 billion, as the HK$6.84 billion generated in the same period last year from Tiara, the residential and commercial project in Shenzhen, was not repeated this time around.

On the plus side, the city’s strong economic health had helped lift passenger numbers 2.1 per cent to 5.8 million per weekday in the first half of 2018.

MTR Corp expected the Hong Kong businesses would benefit from the solid economic growth in the rest of this year.

This is despite the continued tough conditions it faces. The government, which owns 75 per cent of the corporation, said on Tuesday it had lost faith in the top management of the HK$97.1 billion Sha Tin to Central rail line after discovering contradicting evidence in the company’s reports over the substandard work of the project.

It ordered the company to kick out the managers in question, which resulted in four immediate departures and CEO Lincoln Leong’s premature retirement. Chair Frederick Ma Si-hang will remain at helm until a new chief executive officer is hired.

The four departures included former projects director Philco Wong Nai-keung and three former general managers of the project Lee Tsz-man, Jason Wong Chi-ching and Aidan Rooney.


Category: Hong Kong

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