SINGAPORE (Nov 10): Transport operator ComfortDelGro reported a 8.2% fall in 3Q earnings to $80.1 million from $87.3 million a year ago. This brings earnings for 9M ended Sept to $242 million.
Revenue fell 2.4% to $991.4 million in the face of strong competition. At group level, revenue from the Public Transport Services business increased by 4.5% to $601.5 million from growth in the underlying business as well as a favourable currency translation from the stronger Australian Dollar and Sterling Pound.
Revenue for the Taxi business decreased by 11.2% to $298.3 million due to higher competition. Revenue for the Inspection and Testing Services business dipped by 2.2% to $26.3 million due to lower business volumes.
Operating costs fell by 0.9% to $879.9 million despite an unfavourable foreign currency translation effect of $5.3 million due to tight cost controls.
Group operating profit decreased by 12.3% to $111.5 million, in line with the drop in revenue. Overseas ventures accounted for close to 45% of total group operating profit compared to 41.3% previously.
In its outlook, ComfortDelGro says revenue from the Public Transport Service Business in Singapore is expected to be higher. Bus service revenue is expected to increase with a full year contribution under the Bus Contracting Model.
Rail service revenue is also expected to be higher with the commencement of revenue service at the Downtown Line 3 on Oct 21. Rail fare revenue will be affected by the fare adjustment effective Dec 29 as announced by the Public Transport Council. Revenue from the Australia and the United Kingdom bus businesses is expected to be higher.
Revenue from the taxi business is expected to be lower as the operating environment continues to be challenging with the substantial increase in private hire vehicles.
While the operating environment continues to be challenging, ComfortDelGro says it will continue to look for opportunities to grow our business and manage costs prudently.
Shares in ComfortDelGro closed at $2 on Friday.
