HONG KONG: MTR Corp announced a 21.1 per cent fall in net profit to HK$10.25 billion (US$1.32 billion) as its earnings contribution from Hong Kong property development slumped. The city’s sole operator of the mass transit railway system said total revenue rose 8.4 per cent to HK$45.19 billion for the year ended December 31.
Underlying profits fell 13.3 per cent to HK$9.4 billion in line with expectations, compared with underlying earnings of HK$10.9 billion for 2015. The major decline was due to lower contribution from property developments, which saw profits falling to HK$311 million against HK$2.89 billion in 2015. Directors declared a final dividend of HK$0.82 per share. Income from property developments will continue to be modest this year, according to MTR chief executive officer Lincoln Leong Kwok-kuen.
“Profits from Hong Kong property development were muted in 2016 and will remain so in 2017, as we will have no new developments scheduled for completion in the year,” said Leong. Over the next 12 months or so, subject to market conditions, the company expects to put up for tender six developments in Hong Kong, and as agent for the KCRC, the first property project at the Kam Sheung Road station site in Yuen Long.
