Western Bus Station achieves record revenue.

The Western Bus Station recorded nearly 37 billion VND in revenue in the third quarter, a record since its announcement, and the highest profit in almost 9 years.

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

The management stated that thanks to the company implementing a service fee for vehicles entering and exiting the terminal since the beginning of the year, based on the schedule approved by the route management authority, and the increase in passenger service business activities, while in the same period of 2022 they had to reduce rental fees for premises and kiosks with partners to support operations.

Financial income and other revenue also increased by nearly half. This was due to the large amount of long-term deposits at the bank earning high interest rates. Overall, WCS currently has nearly 240 billion VND in deposits, generating over 3 billion VND in interest in the third quarter.

After deducting slightly increased expenses, the company earned nearly 19 billion VND in after-tax profit. This is the highest level since the fourth quarter of 2014. With these results, the Western Bus Station continues its streak of positive growth in both revenue and profit for two consecutive years. After the pandemic, it took the company about a year to recover its business results to normal levels as before and begin to reach new peaks.

For the first nine months of the year, the company achieved over 105 billion VND in revenue and over 51 billion VND in after-tax profit, representing increases of 61.5% and double the figures for the same period last year, respectively. The company has completed approximately 87% of its revenue target and exceeded its full-year profit plan by 13%.

This year, the Western Bus Station is expected to welcome nearly 8.8 million passengers, an increase of over 30%. The number of buses will also increase by double digits, to over 360,000. If business results are favorable, the average income of workers at the Western Bus Station will increase to over 21 million VND per month. WCS plans to spend over 18 billion VND on various projects such as installing a solar power system, installing a canopy behind the ticket area, and renovating the floor of the motorbike parking area.

In its annual report, the management highlighted two major challenges for this year. Firstly, the company still has many vacant spaces and kiosks that have been returned but remain unrented. Secondly, the problem of illegal taxis and unauthorized bus stops operating in the city center, and disguised contract vehicles picking up passengers illegally like fixed-route buses, remains complex.

This year, WCS expects to pay dividends at a rate of 20% or more. For four consecutive years, from 2020 to the present, the company has paid dividends at a rate of 20%. Previously, 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, closing at 171,000 VND per unit on October 21st, a decrease of approximately 10% from its peak at the end of June.

Tat Dat

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