HCM CITY — The operator of HCM City’s first metro line reported an after-tax profit of nearly VNĐ39 billion (US$1.5 million) last year, enabling it to fully eliminate accumulated losses built up during years of pre-operation spending before the system entered commercial service at the end of 2024.

According to its 2025 financial report, HCM City Urban Railway No.1 Company Limited recorded revenue of VNĐ547 billion (US$21.5 million), around 50 times higher than the previous year, following the launch of commercial operations on the Bến Thành - Suối Tiên metro line in December 2024.

The company posted after-tax profit of nearly VNĐ39 billion, reversing a loss of more than VNĐ10 billion a year earlier and far exceeding its modest annual profit target of VNĐ20 million.

Revenue growth was driven mainly by passenger services and operational subsidies.

Around half of total revenue came from subsidies calculated based on operating distance and unit pricing under agreements with HCM City’s Public Transport Management Centre.

Ticket sales generated VNĐ214 billion, while the remainder came from infrastructure maintenance activities. Gross profit exceeded VNĐ57 billion, equivalent to a gross profit margin of more than 10 per cent.

Administrative expenses rose by 40 per cent to VNĐ28 billion as the company ramped up operations, but the increase was offset by strong revenue growth and rising ridership.

The latest profit enabled the company to completely offset accumulated losses of more than VNĐ35 billion incurred during the pre-operational period between the company’s establishment in 2019 and the launch of metro services in late 2024.

After clearing those losses, the company retained roughly VNĐ3.6 billion in earnings, which were allocated to development investment, employee welfare and financial reserve funds.

HCM City Urban Railway No.1 Company Limited is a wholly state-owned enterprise under the HCM City People's Committee. By the end of last year, its total assets had increased to VNĐ3.66 trillion, up more than VNĐ100 billion year-on-year.

The 20-km Bến Thành - Suối Tiên route, HCM City’s first urban railway line, officially entered commercial service on December 22, 2024 after more than a decade of construction and repeated delays.

Built at a total cost of over VNĐ43.7 trillion, the line connects the city centre with the city's eastern areas and includes 14 stations, three of them underground in the downtown area.

Last year, the metro line operated more than 80,000 train services and carried over 20.5 million passengers.

From the beginning of this year to May 19, the line completed 34,719 trips and served more than 8.86 million passengers, averaging nearly 64,000 passengers per day.

Current fares range from VNĐ6,000 to VNĐ20,000 per trip depending on distance and payment method.

Unlimited one-day, three-day and monthly passes cost VNĐ40,000, VNĐ90,000 and VNĐ300,000 respectively, while students receive a 50 per cent discount on monthly passes.

In late April, Đồng Nai authorities proposed extending the metro route by 41km to Long Thành International Airport, with estimated investment capital exceeding VNĐ60.2 trillion.

The proposed extension is expected to strengthen regional connectivity, ease pressure on road transport and support transit-oriented urban development once the airport’s first phase becomes operational later this year. — VNS