As someone pointed out it doesn't if the total red+yellow time is still the same (i.e. red time is replaced with yellow).
The counter-argument is well it increases chance of rear end collision when people stop suddenly. And that is true.
The counter-argument to the above is well they should be driving with enough assured distance between vehicles and below the speed limit.
To "maximize" revenue they could be making the legally correct assumption that everyone is keeping a good enough distance and driving below the speed limit, and they'd actually have a legally defensible position as much as I hate to admit it.
(It is also hard to argue informally that they don't know what they are doing, they know perfectly well, as others pointed out, if this was a start up maximizing revenue we should be cheering, right, right...?)