SINGAPORE (Aug 11): Transport operator ComfortDelGro Corporation posts a 6.8% decline in earnings to $79.4 million in the 2Q ended June, from $85.2 million a year ago.
Group revenue slipped 3.4% to $987.2 million in 2Q17, from $1.02 billion a year ago.
ComfortDelGro’s underlying business contributed some $16.9 million to the decline, due to lower revenue from its taxi; automotive engineering services; inspection and testing services; bus station; as well as car rental and leasing businesses.
The decline was partially mitigated by increase in revenue from its public transport services and driving centre businesses.
In addition, the group saw a negative foreign currency translation effect of $18.2 million in 2Q17, led mainly by the weaker Sterling Pound.
Net income from investments fell 48.8% to $2.2 million for 2Q17, mainly due to lower interest income.
As at end June, cash and cash equivalents stood at $606.6 million.
ComfortDelGro has recommended an interim dividend of 4.35 cents per share, slightly higher than the interim dividend of 4.25 cents per share paid a year ago.
Looking ahead, ComfortDelGro says it will continue to manage its costs prudently amid an operating environment which remains challenging.
“While the performance of the public transport segment remains robust, the group continues to face intense competition and challenges in the taxi segment, both in Singapore and overseas,” says ComfortDelGro’s managing director and group CEO Yang Ban Seng.
“The rapid growth of the private hire industry, fuelled by incentives and subsided fares, is something we continue to watch closely. We will intensify efforts and initiatives to retain our drivers and to search for new markets for more jobs for them,” Yang adds. “We are committed to remaining a dominant mobility service provider in the industry and will continue to seek growth overseas.”
Shares of ComfortDelGro closed flat at $2.31 on Friday.
