ComfortDelGro reports 3Q19 net profit fell 11 percent on lower taxi revenue

Tiong Bahru Plaza with ComfortDelGro minibusTiong Bahru Plaza with ComfortDelGro minibus

ComfortDelGro reported Wednesday its third quarter net profit fell 10.8 percent on-year to S$70 million on lower taxi revenue and unfavorable currency translations.

Revenue for the quarter ended 30 September rose 1.1 percent on-year to S$979 million, mainly on new acquisitions in the public transport services business, offset by the unfavorable foreign currency translation from the weaker British pound and Australian dollar, the transportation operator said in a filing to SGX.

Operating costs increased 1.8 percent on-year in the quarter to S$870.1 million, mainly on higher staff, depreciation, repair and maintenance costs, the company said.

“The global economic and political environment has weakened further in the last few months and this has weighed on our businesses, which continue to face intense competition,” Yang Ban Seng, ComfortDelGro’s managing director and CEO, said in the statement.

“Despite the significant challenges, we have managed to grow our topline, with stronger contributions from our overseas businesses. Our
Australian operations, in particular, have performed well, buoyed by the acquisitions that we made last year. Our public transport business continued to gain strength, growing both in terms of revenue and profit,” Yang added.

The public transport services business posted revenue of S$727.1 million, up 4.5 percent on-year, mainly on acquisitions in Australia, higher fees earned from higher mileage operated, and a better performance from bus services and higher average fares and higher ridership on rail services in Singapore.

“Revenue from the Public Transport Services Business in Singapore is expected to be higher. However, it will continue to experience significant cost pressures from operating and maintenance costs,” the company said.

The taxi business posted revenue of S$162.1 million, down 9.6 percent on-year in the quarter, as intensifying competition resulted in a lower operating fleet.

The automotive engineering services business posted revenue fell 10.3 percent on-year to S$61 million on lower fuel volume sold with a reduced taxi fleet.

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