Hong Kong’s embattled MTR Corporation reveals it will incur HK$1.6 billion in costs from protests
- Lower revenue from train services, repair costs for damaged facilities, extra expenses for security and rent concessions take toll
- As a result, the corporation has warned of a significant decline in profits in the financial year ending December 31
The government-controlled company on Thursday revealed for the first time the financial exposure arising from the protests, which centred on lower revenue from train services, repair costs for damaged facilities, extra expenses for strengthening security and concessions to tenants of its retail space.
As a result, the corporation warned of a significant decline in profits from a year ago for the financial year ending December 31.
Hong Kong Federation of Railway Trade Unions vice-chairman Tam Kin-chiu said MTR management told him that despite the additional expenses and reduced income, the rail operator could still be profitable this financial year.
“Since the MTR is still supported by its rental and property business, despite the additional expenses for its rail operation, the management estimates that it could still make profits this financial year,” he said.