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 third quarter of fiscal year 2024/'25. In the third quarter, total income of the fund was THB 1.24 billion, declining 1.1% year-on-year, but rising 15.5% Q-on-Q. Income from investment in net farebox revenue was THB 1.23 billion, dropping 1.1% year-on-year, mainly from higher maintenance costs this year, but lost 15.6% Q-on-Q due to a significant decrease in operating and maintenance costs. Total expenses of the fund were THB 10.7 million, decreasing 23.6% year-on-year, largely due to a reduction in fund management fee. When compared to the previous quarter, total expenses decreased by 27.4% Q-on-Q, primarily due to the absence of books closure expense related to capital reduction and 2-way communication with the unit total. Profit from net investment was THB 1.23 billion, decreasing 0.8% year-on-year, but increasing 16.1% Q-on-Q. In this quarter, the fund recorded loss from investment of THB 740 million. This result largely from the decrease in the remaining period of the right in net revenue under concession agreement, but was partially offset by the decrease in the discount rate. Changes in net asset resulting from operation were THB 492 million. Next slide is the income from investment in NRTA. In the third quarter, farebox revenue was THB 1.77 billion, up 4.2% year-on-year and 1.5% Q-on-Q. Year-on-year and Q-on-Q increase came from the ridership growth of 6.2% year-on-year and 1% Q-on-Q to 53 million trips from monthly packet promotion, but partially offset by the decrease of 1.9% year-on-year due to monthly packet promotion. For the O&M costs, O&M costs were THB 537 million, up 18.9% year-on-year, but down 20.8% Q-on-Q. Year-on-year increase came from the increase in maintenance costs from rolling stock refurbishment and civil maintenance and employee expense from related employee and increased base salary, but partially offset by the lower selling expense from a decrease in point cost due to the restarting of the new Rabbit Rewards loyalty program that reduced the point awarded to passenger. Q-on-Q decrease was mainly due to lower maintenance costs from rolling stock refurbishment and insurance premium. Income from investment in NRTA was THB 1.23 billion, decreasing 1% year-on-year, but increasing 15.6% Q-on-Q. Next is the 9-month performance. May I skip this one and go through the statement of financial position? As of 31st December 2024, total assets were THB 28.4 billion. The main component were investment in NRTA of THB 26.8 billion, decreased by THB 740 million from 30 Sept 2024. Investment in security and cash of THB 1.4 billion. Total equity stood at THB 9 billion and net asset value was THB 28.4 billion, equivalent to THB 4.8991 per unit. Next slide is the core network performance. In the third quarter, ridership was 53 million trips, increasing 6.2% year-on-year and 1% Q-on-Q, mainly from monthly packet promotion. Average weekday ridership was 641,000 trips, up 5.4% year-on-year and 1.2% Q-on-Q. Average fare in the third quarter was THB 33.4 per trip, decreasing 1.9% year-on-year due to monthly packet promotion, but slightly up 0.5% Q-on-Q. Next is the distribution. The fund announced the capital reduction for the third quarter of THB 0.2 per unit. Book closing is on 27 Feb 2025 and payment date is on 13 March 2025. Total distribution since its inception is THB 7.575 per unit in the form of dividend of THB 4.342 per unit and capital reduction of THB 3.23 per unit. Next is the business update. This is the same as the previous quarter. For the Xtreme Savings package, there are THB 10 to THB 35 line of package with a price of THB 33 to THB 39 per trip for adult and THB 26 to THB 31 per trip for student. Since October, the monthly package can be bought at BTS ticket office 60 Stations besides our Rabbit Reward application. In addition for, next slide, in addition from 1st October '24 to 31st March '25, Bangkok Bank Rabbit co-branded debit cardholder get the right to purchase the package of 10 trips for 30-day at the price of THB 200. Next slide is the loyalty program. Loyalty program is still available. Passenger traveling to 1 station will receive 1 point with a maximum of 8 points per trip and will receive double point when traveling at least 4 trips per week. This privilege will be effective for 1 year from 1st April 2024 to 31st March 2025. That's all from BTSGIF.