SINGAPORE (Feb 10): ComfortDelGro saw earnings rise 5.0% to $317.1 million in FY16, from $301.9 million a year ago.
Revenue fell 1.3% to $4.06 billion in the full year ended Dec 31, 2016, compared to revenue of $4.11 billion in FY15.
However, this was mainly due to a loss in revenue of $124.4 million as a result of a negative foreign currency translation effect. Excluding FX losses, ComfortDelGro would have seen revenue increase 1.8% to $4.18 billion.
In a filing to SGX on Friday, ComfortDelGro says the actual increase in revenue was due to better performance in its Public Transport Services, Taxi, and Driving Centre businesses.
On the other hand, operating costs were recorded to have fallen by 1.7% to $3.6 billion as a result of a favourable currency effect of $111.9 million. Without this FX gain, ComfortDelGro reports that operating costs had in fact increased by $48.4 million, or 1.3%.
Net income from investments fell 7.3% to $13.9 million for FY16, from $15.0 million a year ago, mainly due to lower interest income from lower deposit rates.
Finance Costs decreased 21.7% to $14.4 million, from $18.4 million a year ago, due to the repayment of borrowings and lower interest rates charged.
Cash and cash equivalents stood at $779.3 million as at Dec 31, 2016.
ComfortDelGro has proposed a final dividend of 6.05 cents per share. If approved, this brings total dividend for FY16 to 10.3 cents per share.
Looking forward, ComforDelGro says revenue from the public transport services business in Singapore is expected to be higher.
“Bus service revenue is expected to increase this year with a full year contribution of revenue under the Bus Contracting Model compared to four months’ contribution in 2016,” ComfortDelGro says in a statement.
“Rail revenue is expected to be higher with an increase in ridership although this will be somewhat mitigated by the 4.2% fare reduction effective 30 December 2016,” it adds.
Revenue from its Australian bus business is also expected to be higher in FY17.
Meanwhile, revenue from the land transport giant’s UK bus business; bus station business in Guangzhou; taxi business; automotive engineering services business; inspection and testing services business; and car rental and leasing business are all expected to fall.
“We are thankful for another year of growth in profits given the difficult environment we operate in. As we move into 2017, we can expect more challenges and will continue to act prudently in all that we do,” says ComfortDelGro Managing Director and Group CEO, Kua Hong Pak.
ComfortDelGro shares closed 2 cents higher at $2.51 on Friday.
