The more tickets sold, the more losses. How does the Cat Linh-Ha Dong metro company make a profit?

Nhon Metro - Hanoi Station - Photo: PHAM TUAN

In the audited financial report for 2024, Hanoi Metro Company Limited said that its net revenue for the whole year reached VND 628.9 billion, an increase of 22% compared to 2023.

Sell ​​more tickets, get more discounts

In the revenue structure last year, the main source of revenue still came from "subsidies" with nearly 540 billion VND, accounting for nearly 86% and continuing to increase compared to the previous year.

The remaining revenue from service provision (ie ticket sales) only accounts for 89.6 billion VND, equivalent to 14%. Thus, for every 1 VND of ticket sales, Hanoi Metro receives 6 VND of subsidies.

Although revenue from ticket sales did not cover the cost of capital, it still increased by 21% compared to the previous year, showing that ticket sales are increasing in the context of the Nhon - Hanoi Railway Station metro line being put into operation from August 2024.

Ticket sales revenue was less than VND90 billion, but the cost of goods sold was VND610 billion for the whole of last year, an increase of 20%. In fact, ticket sales only covered about 15% of the cost of goods sold.

The subsidy from Hanoi City not only balances the cost of capital for Hanoi Metro, but also helps this unit earn a gross profit of 18 billion VND, instead of losing hundreds of billions of VND.

2015	-3.92
2016	-9.16
2017	-9.6
2018	-9.8
2020	-22.67
2021	-37.9
2022	2.29
2023	13.1
2024	15.4

Data: Financial statements

Also according to last year's report, business management costs increased, but in return, Hanoi Metro had financial revenue of VND24.8 billion. This is interest on deposits because the company had more than VND890 billion in banks as of December 31, 2024, an increase of 30% compared to the beginning of the year.

Due to no bank loans, Hanoi Metro also did not incur any financial expenses during the period. After deducting expenses and taxes, Hanoi Metro reported a net profit of VND15.4 billion, up 17.5% compared to 2023.

Expert salary

The report also revealed some of the incomes of leaders and experts working at this company.

Specifically, last year, Hanoi Metro had a short-term payable expense for the purpose of prepaying expert salaries of more than 70.3 billion VND.

The salary and remuneration of key members is more than 1.89 billion VND, an increase of 56% compared to 2023.

Currently, Hanoi Metro has two company branches, managing two urban railways in the capital. Of which, the 8.5km elevated section from Nhon to S8 station (Cau Giay) of urban railway line No. 3, Nhon - Hanoi station section, officially put into commercial operation to serve passengers from August 2024. In the first 3 months of operation, this line opens at 5:30 a.m. and closes at 10 p.m. with a trip every 10 minutes.

Regarding ticket prices, a single ticket costs 8,000 VND and a full-trip ticket costs 12,000 VND. A day ticket costs 24,000 VND, valid for one day and has no limit on the number of trips. Monthly tickets (general, priority): general 200,000 VND/month; priority for students is 100,000 VND/month, and group tickets are 140,000 VND/month.

Regarding the Cat Linh - Ha Dong urban railway, this is a 13km long elevated metro line with 12 stations. The listed ticket price is from 8,000 VND to 15,000 VND/trip depending on the distance the passenger travels.

On both routes, Hanoi offers free tickets for children under 6 years old, meritorious people, seniors over 60 years old, and people with disabilities.

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BINH KHANH

Source: https://tuoitre.vn/cang-ban-nhieu-ve-cang-lo-cong-ty-van-hanh-metro-cat-linh-ha-dong-lai-nho-dau-20250515193308722.htm