SMRT cuts dividend as Q4 profit drops 59%

Singapore's main subway operator SMRT Corp Ltd reported on Monday a 59 per cent drop in fiscal fourth-quarter net profit, hurt by higher operating expenses and impairment of goodwill on its bus operations.

The company earned S$13.9 million (US$11.2 million) in the three months ended March, down from S$34 million a year earlier.

Singapore Mass Rapid Transit (SMRT) declared a reduced final dividend of 5.70 Singapore cents compared with 6.75 cents a year ago.

SMRT shares have fallen around 7 per cent since it said last week it would spend S$900 million to overhaul the train system following numerous breakdowns in recent months. Part of the cost will be borne by the government's Land Transport Authority (LTA).

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