The Mass Transit Railway Corporation saw $18.797 billion in revenue last year, up 6.6%. Fare revenue grew 0.3% to $11.498 billion while property development profit fell 23.9% to $3.554 billion.

Announcing the financial results today, MTRC Chief Executive Officer Chow Chung-kong said the company's satisfactory fiscal performance last year came despite challenging economic conditions and the threat posed by human swine flu.

Operating profit from railway and related businesses before depreciation rose 1.9% to $9.502 billion. Property development profit mainly came from sale of Kowloon Station's The Harbourside, additional profit bookings from The Palazzo and The Capitol, as well as surplus proceeds from Wu Kai Sha Station's Lake Silver.

Network expansion

"Good progress was made during the year on the five new Hong Kong rail projects, which, together with the opening of both the Kowloon Southern Link and the final phase of the Tseung Kwan O Line, represent a new chapter in the company's history," Mr Chow said.

"Through this extensive network expansion, we are building connections throughout Hong Kong and to the Mainland that will both strengthen the company's growth opportunities and enhance connectivity for our customers."

The net profit attributable to equity shareholders, excluding investment property revaluation, fell 10.8% to $7.303 billion. Including investment property revaluation and related deferred tax, the net profit attributable to equity shareholders was $9.639 billion, up 16.4% on a year earlier.

Reported earnings per share were $1.28 before investment property revaluation, and $1.69 after revaluation. The corporation's Board of Directors has recommended a final dividend of 38 cents per share. This brings the full-year dividend to 52 cents, up 8.3% on 2008.

Operational details

On the operational front, total patronage for all rail and bus passenger services grew 1.4% to 1.507 billion. The company's overall share of the franchised public transport market rose to 42.6% from 42%, with its share of cross-harbour traffic up from 63.4% to 64%.

The company's domestic service recorded total patronage of 1.219 billion, up 1.1% on a year earlier. Patronage for cross-boundary services at Lo Wu and Lok Ma Chau rose 0.7% to 94 million.

The average fare per passenger for the domestic service fell 0.4% to $6.55, due to the full-year impact of extending student half fares to the East Rail, West Rail and Ma On Shan lines in September 2008. For cross-boundary services, the average fare was $24.75, up 1.2% on a year earlier.

Passengers using the Airport Express fell 6.9% to 9.9 million due to a marked reduction in air travel as a result of the human swine flu and the economic downturn. Fare revenue was $617 million, down 8.3% on 2008, and the average fare per passenger dropped 1.6% to $62.48.

Cautious outlook

Looking ahead, Mr Chow said although economic conditions are improving, recovery may be slow and there remains the risk of further volatility in the global economy.

"In Hong Kong, improvements in the economy and the full year impact of the Kowloon Southern Link and LOHAS Park Station should benefit rail patronage."

The occupation permit for Le Prestige at LOHAS Park Package Two was issued in January, while that for a small retail shopping mall in Area 56, Tseung Kwan O, is expected in the second half of the year.

A rail fare review will be conducted in June in accordance with the Fare Adjustment Mechanism.