BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) Q1 FY2026 Earnings Call Transcript & Summary

Next, I would like to hand over to Khun Siriphen for BTSGIF update.

Good afternoon, everybody. Today, I will present the financial performance of BTSGIF for the first quarter of fiscal year 2025/'26. In the first quarter, total income of the fund was THB 1,088 million, up 11.7% year-on-year, but down 13% Q-on-Q, mainly attributed to the income from investment in NRTA, which increased by 11.8% year-on-year, but dropped 13.2% Q-on-Q to THB 1,081 million. Total expenses of the fund were THB 12.4 million, down 10.8% year-on-year, mainly due to lower fund management fee and down 8.2% Q-on-Q, mainly from higher book closure expense in previous quarter. Profit from net investment was THB 1,076 million, increased 12% year-on-year, but decreased 13% Q-on-Q. In this quarter, the fund recorded loss on investment of THB 600 million from the decrease in the remaining period of its net revenue under concession agreement. Changes in net asset resulting from operation were THB 476 million. Next slide is the income from investment in NRTA. In the first quarter, Farebox revenue was THB 1,556 million, decreasing 3% year-on-year and 7.6% Q-on-Q. Year-on-year decrease came from the ridership decline of 3% year-on-year to 46.4 million trips due to the fare sensitivity following a THB 1 per trip increase in the monthly pass card effective from 1st April 2025. The impact of the earthquake, fewer weekday and ongoing economic slowdown. Q-on-Q decrease came from the ridership decrease of 10.9% Q-on-Q, mainly due to the higher ridership during the free travel period from 25th to 31st January this year, but was partially offset by fare increase of 3.6% Q-on-Q, mainly due to lower average fare from the free travel day last quarter. O&M costs were THB 475 million, decreased 75% (sic) [ 25.4% ] year-on-year, but increasing 8% Q-on-Q. Year-on-year decrease mainly from the decrease in maintenance costs from lower rolling stock refurbishment expense. Q-on-Q increase was mainly due to the increase in employee expense from bonus payment in this quarter. Income from investment in NRTA was THB 1,081 million, increasing 11.8% year-on-year, but decreasing 13% Q-on-Q. Next is the statement of financial position. As of 30th June 2025, total assets were THB 24.09 million. The main component were investment in NRTA of THB 22.6 million, decreased by THB 600 million from 31st March 2025. Investment in security and cash of THB 1.1 million and other asset of THB 346 million. Total liabilities stood at THB 11.5 million and net asset value was THB 24.08 million, equivalent to THB 4.1601 per unit. Next slide is the Core Network Performance. In the first quarter, ridership was 46.4 million trips, decreasing by 3% year-on-year, mainly due to the fare sensitivity following an increase in the monthly pass card by THB 1 per trip. Effective from 1st April 2025, the impact of the earthquake at the end of March, fewer number of weekday and the ongoing economic slowdown. Compared to the previous quarter, ridership decreased by 10.9% Q-on-Q from higher ridership during the free travel period from 25 to 31st January last quarter. In addition, in this quarter, there are several holidays, which result in seasonal effect along with the fare sensitivity following the recent fare increase. Average weekday ridership was 588,000 trips, down 1.9% year-on-year and 8.9% Q-on-Q. Average fare in the first quarter was THB 33.5 per trip, flat year-on-year, but increased 3.6% Q-on-Q, mainly due to lower average fare in the previous quarter from free travel days. Next is the distribution. The fund announced a capital reduction for the first quarter of THB 0.2 per unit. Book closing date is on 27th August 2025 and payment date is on 10th September 2025. Total distribution since inception is THB 7.988 per unit in the form of dividend of THB 4.342 per unit and capital reduction of THB 3.646 per unit. For the business update on the next slide. Thai government THB-20 Flat Fare policy. The Thai government has introduced THB-20 Flat Fare policy to enhance urban mobility and reduce commuting costs for Thai Citizen. Currently, the policy is implemented on the Purple Line from Tao Poon to Khlong Bang Phai and the Red Line from Bang Sue to Rangsit and Bang Sue to Taling Chan, both of which have received positive feedback from [indiscernible]. The government plan to expand the policy to add electric train lines with implementation targeted on 1st October 2025. To be eligible for the discounted fare, Thai passenger must register through the Tang Rat mobile application, and link a contactless EMV card, Visa or Mastercard or a registered debit card, MRT pass or other approved transit card. The system will monitor travel behavior to cap fare at THB 20 per trip while the government will provide subsidy to the operator to compensate for the difference in revenue. At present, the fund is awaiting a clear resolution regarding our government compensation mechanism under the same policy. BTSGIF and the fund will engage in discussion with the relevant government authority. Should there be any progress on this matter, the fund will report the detail to unitholders for consideration and approval accordingly. Next is the monthly package. BTSGIF has announced that the XTreme Saving Package will be available for purchase only until 24th August 2025. In preparation for the government policy set to commence on 1st October 2025. And starting 1st October 2025, trips from Rabbit Card registered with Tang Rat application will no longer be usable. That's all for BTSGIF. Thank you.