SBS Transit Ltd on Wednesday reported net profit for the third quarter to end September 2008 fell 17 per cent from a year ago to S$8.32 million.

Revenue rose 10 per cent to S$184.81 million due to higher bus and rail fare revenue and higher rental income.

However, operating expenses of S$178.3 million for 3Q08 increased by 12 per cent or S$19 million as compared to S$159.3 million in 3Q07 due mainly to higher fuel and electricity costs which increased by 51.9 per cent or S$17.7 million.

Group cash and cash equivalents as at 30 September 2008 was S$12.6 million. If the held-for-trading and available-for-sale investments were to be included, the cash position as at 30 September 2008 would be S$74.9 million.

SBS said revenue from Bus and Rail Operations is expected to continue to improve on the back of growth in ridership and fare increase from 1 October 2008.

With the economic downturn, advertising revenue is expected to slow down. With the recent drop in oil prices, the cost ofdiesel and electricity is likely to be lower.