Western Bus Station achieves record revenue.

Ho Chi Minh City's ban on sleeper buses entering the inner city helped boost revenue at the Western Bus Station to 140 billion VND in 2023, a record high since the information was first announced.

According to recent financial reports from the Western Bus Station Joint Stock Company (WCS), the company achieved revenue of nearly 35 billion VND in the last quarter of 2023, a 21.5% increase compared to the same period in 2022. Similar to previous quarters, the improved revenue was due to the ban on sleeper buses entering the inner city area from the beginning of the year, which prompted transport companies to bring their vehicles into the bus station for operation. The company applies service fees for buses entering and exiting the station based on a schedule approved by the route management authority.

In the fourth quarter of 2023, WCS also recorded a nearly 29% increase in financial income to VND 4.7 billion, thanks to long-term deposits with high interest rates at the beginning of the year. The company currently has over VND 200 billion in savings deposits at various banks.

After deducting expenses, this quarter, the Western Bus Station achieved nearly 15.3 billion VND in after-tax profit, a 13% increase compared to the same period in 2022. The company extended its streak of positive growth in both revenue and profit for more than two consecutive years. After the pandemic, it took the business about a year to recover and begin to reach new peaks.

For the full year 2023, WCS recorded over VND 140 billion in revenue, a 49% increase and a record high since its inception in 2008. Net profit increased by nearly 75% to approximately VND 66.5 billion, the highest level in four years. The company exceeded its revenue target by 17%, but its profit was almost half of the full-year target.

Previously, the management of the Western Bus Station projected that if business results were favorable, the average income of employees there would increase to over 21 million VND per month, and they would receive an annual bonus of up to three months' salary. In addition, when profits exceeded targets, the company would allocate an additional 20% of the surplus profit as a bonus for employees, up to a maximum of three months' salary.

In 2023, WCS aims to pay dividends at a rate of 20% or higher. For four consecutive years, from 2020 to the present, this company has paid dividends at a rate of 20%. Prior to this, the Western Bus Station was known for its exceptionally high annual cash dividend payout ratios, reaching 400% in 2018 and 516% in 2019.

WCS shares are among the most expensive on the market. The closing price on January 23rd was 186,000 VND per unit, down approximately 2% from its peak at the end of June 2023. During the market correction in October, the share price fell slightly, still trading around 170,000 VND with low liquidity.

Tat Dat

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