The Mass Transit Railway Corporation saw a 12% rise in revenue last year, to $10.69 billion, while net profit grew 95.69%, to $15.18 billion.

The final dividend was 31 cents, which when combined with the interim dividend of 14 cents, brought the full-year dividend to 45 cents, up 7.1% over 2006.

Announcing the results today, MTRC Chief Executive Officer CK Chow said total fare revenues rose 9.1% to $7.1 billion, with fare revenue from domestic service rising 5.1% to $6.2 billion.

Fare revenues from the Airport Express increased 7% to $655 million while cross-boundary, light rail, bus and intercity services contributed total revenue of $247 million for the period after the merger with the KCRC in December.

Non-fare revenues grew 18.5% to $3.57 billion. This included $1.74 billion in station commercial and rail-related business incomes, and $1.83 billion in property rental, management and other incomes. Total revenues rose 12% to $10.69 billion.

Operating costs

Total operating costs, excluding merger-related expenses, increased 10.1% to $4.78 billion after accounting for the incremental operating costs following the rail merger.

Operating profit from railway and related business before depreciation and amortisation rose 13.7%, to $5.9 billion, before accounting for merger-related expenses.

Property-development profits rose significantly, from $5.81 billion to $8.3 billion, mainly due to profit recognition from Le Point at Tiu Keng Leng Station.

Excluding investment property revaluation, net profit attributable to shareholders from underlying businesses for 2007 increased by 43.8% to $8.57 billion, or $1.54 per share as compared with $1.08 in 2006.

After accounting for the revaluation of investment properties, reported earnings attributable to shareholders were $15.18 billion with earnings per share of $2.72.

Future outlook

Mr Chow said uncertainties in the global economy continued in the latter part of 2007 and into 2008, with the risk of a slowdown in the US. However, with continued growth in the Mainland and barring any further major external shocks, he held a positive view of Hong Kong's 2008 economic prospects.

"The rail merger will have a positive full-year impact on our businesses in 2008. We remain confident of achieving the $450 million a year in merger synergies over three years," Mr Chow said.

"In 2008, we are of the view that approximately $130 million of such synergies could be achieved through energy optimisation, combined procurements and revenue enhancements through the enlarged network."