The Transport Department says it is encouraging New Lantao Bus Co to find ways to cut costs after a first-half result that was “not satisfactory.”

The bus operator, a subsidiary of listed Kwoon Chung Bus Holdings, reported a HK$3.6 million loss in the first six months which it attributed to higher operating costs, including fuel and wages.

However, despite warning earlier in mid-2017 of the need to rationalise services to save money, no cuts were made.

The TD said that after winning the tender to service two new routes to the HK-Macau bridge border crossing, and with new housing developments in Mui Wo and Tung Chung, “it is anticipated that NLB’s financial performance will be improved.”

In a statement, it said it would “encourage NLB to explore measures to control costs with a view to improving its financial performance.”

But while no major rationalisation was required, the department would closely monitor passenger numbers and “implement rationalisation of bus services as and when necessary.”