BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) Earnings Call Transcript & Summary

Good afternoon, everybody. Today, I will present the financial performance of BTSGIF for the second quarter of fiscal year '24/'25. In the second quarter, total income of the fund was THB 1.08 billion, declining 12% year-on-year, but rising 10.4% Q-on-Q. Income from investment in net farebox revenue was THB 1.07 billion, dropping 12.2% year-on-year, mainly from higher maintenance cost this year, but rose 10.5% Q-on-Q due to higher ridership. Total expenses of the fund were THB 14.8 million, decreasing 16.4% year-on-year, largely due to a reduction in fund management fee. When compared to the previous quarter, total expenses increased by 6.3% Q-on-Q, mainly due to books closure expense related to capital reduction and two-way communication with the unitholder. Profit from net investment was THB 1.06 billion, decreasing 11.9% year-on-year, but increasing 10.5% Q-on-Q. In this quarter, the fund recorded loss from investment of THB 790 million. This resulted largely from the decrease in the remaining period of the right in net revenue under concession agreement and the decrease in the forecast farebox revenue in the second half of this year, but was partially offset by the decrease in discount rate according to the decrease in risk-free rate. Discount rate decreased to 6% in this quarter from 6.3% in the previous quarter. Changes in net asset resulting from operation was THB 271 million. Next slide is the income from investment in NRTA. In the second quarter, farebox revenue was THB 1.74 billion, up 2.9% year-on-year and 8.9% Q-on-Q. Year-on-year and Q-on-Q increase came from the ridership growth of 5.7% year-on-year and 9.8% Q-on-Q to 52.5 million trips from higher number of weekdays and monthly package promotion, but partially offset by decrease of 2.6% year-on-year due to monthly package promotion and decrease of 0.9% Q-on-Q. On the O&M cost side, O&M costs were THB 677 million, up 41% year-on-year and 6.3% Q-on-Q. Year-on-year increase came from the increase in maintenance costs from rolling stocks refurbishment and insurance premium paid this quarter, but partially offset by lower selling expense from a decreased employee cost due to the restructuring of the new Rabbit Rewards loyalty program that reduced the point awarded to passengers. Q-on-Q increase was mainly due to higher maintenance costs from civil work maintenance and insurance premium paid this quarter. Income from investment in NRTA was THB 1.07 billion, decreasing 12% year-on-year and increasing 10.5% Q-on-Q. Next slide is the first half performance. May I skip this one and go to the financial statement position. For the financial statement position, as of 30 September 2024, total assets were THB 29 billion. The main components were investment in NRTA of THB 27.5 billion, decreased by THB 790 million from 30 June 2024. Investment in security and cash of THB 1.5 billion and other assets of THB 2 million. Total liabilities stood at THB 41 million and net asset value was THB 29 billion, equivalent to THB 5.0091 per unit. Next slide is the core network performance. In the second quarter, ridership was 52.5 million trips, increasing 5.7% year-on-year and 9.8% Q-on-Q, mainly resulting from more weekday in this quarter and further support by monthly package promotion. Average weekday ridership was 633,000 trips, up 4.9% year-on-year and 5.6% Q-on-Q. Average fare in the second quarter was THB 33.2 per trip, decreasing 2.6% year-on-year due to monthly package promotion and slightly down 0.9% Q-on-Q. Next slide is the distribution summary. The fund announced the capital reduction for the second quarter of THB 0.195 per unit. Book closing date is on 27 November 2024, and payment date is on 12 December 2024. Total distribution since its inception is THB 7.375 per unit. Next is the business update on the monthly package. Since 1st November 2023, BTSC and Total8 have been offering new monthly package. And on 1st April 2024, this monthly package has been extended and can be partially redeemed, using every 700 Rabbit Points for THB 100. Since October, the monthly package can be bought at BTS Ticket Office 60 Station besides our Rabbit Reward application. In addition, from 1st October '24 to 31st March '25, Bangkok Bank Rabbit co-brand debit cardholder get the right to purchase the package of 10 trips for 30 days at a price of THB 200. Next is the loyalty program. In addition, loyalty program is still available. Passenger traveling 1 station will receive 1 point and will receive double point when traveling at least 4 trips per week. The point can be redeemed for free trips, special discount and deal from leading bank. This privilege will be effective for 1 year from 1st April 2024 to 31st March 2025. That's all from BTSGIF.