ComfortDelGro profits up 1.2% YoY to $75.9m in Q2

Its acquisitions in 2018 softened the impact from its weakening taxi business.

ComfortDelGro Corporation’s profits grew 1.2% YoY to $75.9m in Q2 from $75m in 2018, an announcement revealed. Revenues rose 4.2% YoY to $980.8m from $941.1m over the same period.

The revenue growth was driven by strong contributions from the acquisitions made in 2018, which offset the decline in its taxi business. 

Also read: ComfortDelGro buys Australian bus operator for $27m

Operating costs during the quarter grew 4.1% to $865.8m as the firm stepped up hiring to support business growth, as well as higher repairs and maintenance costs. Group operating profit inched up 5% to $115m in Q2, after taking into account the net negative impact from the foreign currency translation effect of $2.1m from the weaker Australian Dollar, British Pound and Chinese Renminbi.

For the first half of the year, group revenue climbed 5.9% to $1.93b whilst net profit edged up 3.5% to $146.3m from $141.3 in 2018, reversing last year’s drop.

Revenue from the group’s public transport services segment grew registered growth of 7.9% to $723.8m as performances from its Singapore and Australia operations continue to rise. Around 80% of the revenue came from new acquisitions.

Also read: Singapore seeks to regulate ride-hailing operators

On the other hand, revenues from its taxi business dipped 8.3% to $166.9m, due to a smaller operating fleet. The fleet shrunk as a result of intensifying competition from the ride-hailing operators. Its inspection and testing services revenue inched up 1.6% to $25.7m.

“To ameliorate the negative impact, we will continue with efforts to replace the older taxis with new hybrid taxis which incur lower taxes and depreciation,” the company said in a statement, as it expects lower revenue from the taxi segment, car rental and leasing business. 

Dividend for the period is at $0.045 apiece, with a payout ratio of 66.6%.