The strong rebound in Hong Kong tourism helped put MTR Corp on track to a forecast-beating net profit of HK$1.17 billion in the first six months of the year.
The urban rail service provider's interim profit was up from HK$113 million a year earlier and exceeded the HK$1 billion top-end forecast of analysts.
The profit growth was due to reduced operating and interest costs and double-digit increases in fare revenue, advertising income, rentals and property development returns.
'We saw steady recovery in the economy after Sars, a surge in tourism and improvement in the property market, consumer spending and deflation, which all impacted positively on our performance,' chief executive Sir Chung-kwong Chow said yesterday.
Although analysts were impressed by the MTRC's lower operating costs, they pointed out that challenges loomed in the second half due to rising interest rates and a possible merger with the Kowloon-Canton Railway Corp.
'The MTRC's cost control was done pretty well while its property profit was bigger than I thought,' said JP Morgan analyst Edmond Lee.
