MTR Returns To Profit In First Half Of 2021

The MTR Corporation on Thursday said it has returned to the black in the first half of this year for the first time since 2019, posting a net profit of HK$2.67 billion.

However, the rail firm said earnings were still below pre-pandemic levels because Hong Kong's border remained closed and tourists haven't returned.

An easing of social distancing measures brought rail passengers back, which saw an increase of 16.7 percent to 646 million year on year.

The MTR said its mall business also saw improvement in the six months ending June.

Herbert Hui, the corporation's finance director, said while passenger numbers had returned to about 80 percent of the pre-pandemic levels, "the profit and financial performance are still a far cry from normal levels."

"What will be the key driver and game changer for the situation, it will very much depend on cross-boundary reopening, because that will help us in bringing in visitor revenues and help us on the non-fare revenue side," he said.

Meanwhile, the MTR said the cross-harbour section of the Sha Tin-to-Central link project was now 94.3 percent complete.

The corporation's CEO Jacob Kam said efforts were continuing to minimise delays to the opening.

The extension of the East Rail line from Hung Hum to Admiralty was due to begin operation in the first quarter of next year, but glitches in a new signalling system has pushed back the opening for about five months.

Kam said the outlook will be clearer when most of the line's new trains enter service.

"We have seen the bifurcation works connecting the existing track with the new track have been completed to a large extent. Now we have 14 new trains that are operational, compared with six a few months ago," he told a press conference.

"We are making progress in catching up. But a five-month delay is a long delay. We can only save one day here and one day there and it's hard work. We are doing everything we could, we haven't given up."

MTR shares closed 0.45 percent higher at HK$45 on Thursday before the results announcement.