ComfortDelgro’s first-half earnings up 21.4% to $95.3 million
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Revenue was driven mainly by new acquisitions and increased contributions from existing businesses.
PHOTO: ST FILE
Derryn Wong and Benjamin Cher
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SINGAPORE - Transport operator ComfortDelgro (CDG) reported on Aug 14 a 21.4 per cent increase in first-half 2024 earnings to $95.3 million, from $78.5 million in the same period a year ago.
Revenue for the period rose 13.7 per cent to $2.1 billion from $1.9 billion in the year prior, driven mainly by new acquisitions and increased contributions from existing businesses.
The United Kingdom-based CMAC, acquired in February 2024,
The taxi/private hire vehicle business also recorded increased revenues for the period – 17.8 per cent higher to $327.5 million in the first half of 2024 from $277.9 in the same period in 2023. Most of that rise was contributed by the newly acquired Australia-based taxi company, A2B.
Revenue from the public transport business rose 7 per cent to $1.5 billion in the first half of 2024, from $1.4 billion in that period in 2023, due to increased revenues from UK bus contracts, improved rail ridership and fare increases, as well as contractual indexation adjustments on public bus contracts.
Mr Cheng Siak Kian, chief executive officer of CDG, said: “We remain vigilant as we navigate the evolving macro-economic challenges and continue this momentum of building scale and new capabilities for the long term.”
The outlook for the public transport business appears mixed for CDG, with the operator successful in renewing only one of two bus packages in Singapore. Rail revenues are expected to be stable.
Driver shortages continue to plague the Australian market. In the UK, the London Public Bus contract renewals are expected to continue at improved margins. Four successful public bus franchises in Greater Manchester
On the taxi front, the Singapore market is expected to be stable amid intense competition; China revenues are expected to recover gradually. A2B will also record a full contribution for the second half of 2024.
An interim dividend of $0.0352 per share was declared by the board, with the closing of books on Aug 22 and payout on Aug 29.
Shares of CDG closed unchanged at $1.40 on Wednesday. THE BUSINESS TIMES
