Western Bus Station's revenue hits record high

Mien Tay Bus Station recorded nearly 37 billion VND in revenue in the third quarter, a record since the information was announced, the highest profit in nearly 9 years.

Figures from the financial report of Western Bus Station Joint Stock Company (WCS) show that revenue increased by more than 36% compared to the same period last year, to 36.8 billion VND. This is the highest level since the company announced information in 2009.

The management board said that thanks to the company applying the collection of service fees for vehicles entering and leaving the station from the beginning of the year, according to the vehicle schedule approved by the route management agency. In addition, passenger service business activities have also increased, while in the same period in 2022, it had to reduce rental fees for premises and kiosks with partners to support.

Financial revenue and other income also increased by nearly half. The reason comes from the amount of long-term deposits at the bank that enjoy high interest rates. In total, WCS has nearly 240 billion VND in deposits, bringing in more than 3 billion VND in profit in the third quarter.

After deducting slightly increased expenses, this enterprise earned nearly 19 billion VND in profit after tax. This is the highest level since the fourth quarter of 2014. With the above results, Mien Tay Bus Station has continued its positive growth streak in both revenue and profit for two consecutive years. After the pandemic, this enterprise took about a year to recover its business results to normal levels as before and began to create new peaks.

In the first 9 months, the company achieved over VND105 billion in revenue and over VND51 billion in after-tax profit, up 61.5% and double compared to the same period last year. The company completed about 87% of its revenue target and exceeded the annual profit plan by 13%.

This year, Mien Tay Bus Station is expected to welcome nearly 8.8 million passengers, an increase of more than 30%. The number of vehicles is also expected to increase by double digits, to more than 360,000. If business results are favorable, the average income of workers at Mien Tay Bus Station will increase to more than 21 million VND per month. WCS plans to spend more than 18 billion VND to build many items such as installing a solar power system, installing a roof behind the ticket sales area, and renovating the ground floor of the two-wheeled vehicle garage.

In the annual report, the board of directors pointed out two major challenges for this year. One is that the company still has many premises and kiosks that have been returned and cannot be rented out. Second, the situation of illegal buses and bus stations operating in the city center, and contract buses disguised as buses picking up passengers illegally, such as fixed-route buses, is still complicated.

This year, WCS plans to pay dividends at a rate of 20% or more. This company has paid dividends at 20% for four consecutive years, from 2020 to now. Previously, Mien Tay Bus Station was known for its sky-high annual cash dividend rate, 400% in 2018 and 516% in 2019. WCS shares are among the most expensive on the market with a closing price of VND171,000 per unit on October 21, down about 10% from the peak at the end of June.

Siddhartha

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