ComfortDelGro profit falls 20% despite revenue growth
Competition and cautious spending weighed on taxi and private-hire earnings, while improved London bus contract margins provided a partial offset.
ComfortDelGro’s earnings fell despite higher revenue in the nine-month period ending Sept 30. In a Nov 12 update, the Singapore-listed transport company reported S$141.1 million in net profit, 20 per cent below the S$176.4 million recorded a year earlier.
The company blamed competition and cautious consumer spending for weaker taxi and private-hire results. The previous corresponding period also benefited from a disposal gain of S$25.9 million that did not recur.
Group revenue reached S$3.94 billion, an increase of 4.9 per cent from S$3.75 billion, with contracted public transport operations providing support. Operating profit, however, dropped to S$235.2 million, a decline of 16.9 per cent.
Taxi and private-hire operations generated S$718.5 million in revenue, against S$778.2 million previously. After excluding non-recurring items, operating profit for that business was S$54.6 million, down 44.9 per cent. ComfortDelGro pointed to fewer Singapore taxis, a reduced Australian network and softer UK premium business travel demand because of the Middle East conflict.
Public transport revenue increased from S$2.44 billion to S$2.62 billion. The segment earned S$131.7 million in operating profit excluding non-recurring items, up 18.4 per cent. Better margins from renewed bus contracts in London helped partly counter the taxi business’s decline, the group said.
ComfortDelGro also announced that its venture with France’s RATP Dev had secured an approximately S$3.4 billion Copenhagen Metro contract. Operations and maintenance will cover 44 stations and 43 km of track across four fully automated lines. The 12-year term begins in September 2027 and includes an option to renew for three years.
