Q3 earnings up for ComfortDelGro

Higher turnover from buses and taxis have helped lift third-quarter earnings at ComfortDelGro Corporation.

Net profit for the three months to Sept 30 rose 5.4 per cent to $85.2 million over the same period last year, while revenue increased by 1 per cent to $1.048 billion.

Revenue growth was partly offset by lower contributions from automotive engineering services, inspection and testing, and the driving centre division.

Turnover from the bus business increased 3.4 per cent to $546.2 million, comprising 52.1 per cent of revenue in the quarter.

The increase was partially eroded by a negative foreign currency translation effect of $7.9 million, ComfortDelGro said yesterday.

Contributions from overseas bus operations continued to account for the bulk of bus revenue, at 60.8 per cent.

Turnover from buses in Singapore increased 5.3 per cent to $214.2 million, while sales for the taxi business rose 2.4 per cent to $335.2 million, accounting for 32 per cent of total revenue.

The taxi unit's $8 million revenue boost was helped by a positive foreign currency effect of $4.1 million.

Revenue from the taxi business in Singapore increased by 2.8 per cent to $253.9 million.

Turnover was up 6 per cent to $44.1 million in China, but it slipped elsewhere.

Taxi turnover in Britain fell 2.2 per cent to $31.0 million, while turnover from Australian taxis fell by 22 per cent to $3.9 million, largely from the effect of the weaker Australian dollar.

The overseas taxi business accounted for 24.3 per cent of the group's total taxi revenue.

Rail revenue increased 7.3 per cent to $54.7 million in the third quarter.

The average daily number of riders for the North East Line grew 4.2 per cent to about 549,000 in the third quarter, and the Downtown Line added 15.2 per cent more riders to 78,000.

The Punggol and Sengkang LRT lines saw an increase of 15.5 per cent to about 103,000 riders.

Earnings per share was 3.97 cents, up from 3.78 cents last year, while net asset value per share was 105.22 cents as at Sept 30, up from 102.36 cents as at Dec 31.

ComfortDelGro said it expects revenue from the bus, taxi and rail businesses to be higher, while turnover from bus stations, the driving centre business and car rental and leasing is expected to be maintained.

But revenue from automotive engineering and inspection and testing is forecast to be lower.

The results were announced after the market closed.

ComfortDelGro shares closed 10 cents or 3.25 per cent down at $2.98 yesterday.

This article was first published on November 14, 2015.
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