ComfortDelgro – BT

ComfortDelGro’s Q2 net profit up 3% at $60m

The group declares an interim dividend of 2.7cents per share

COMFORTDELGRO Corporation posted a 3 per cent rise year on year in net profit to about $60 million for the second quarter ended June 30, while revenue increased 6.8 per cent to $843 million.

During the quarter, operating profit improved by 3.7 per cent to $103 million despite rising costs, especially for fuel and electricity. Earnings per share were 2.87 cents, up from 2.79 cents in Q2 2010.

The group has declared an interim dividend of 2.7 cents per share, payable Sept 1.

For the half-year ended June 30, net profit slipped 2.2 per cent to $110 million, dragged down by higher operating costs while group revenue climbed 5.8 per cent to $1.65 billion.

In Q2 2011, ComfortDelGro’s bus business saw revenue increase about 5 per cent to $419.5 million, as growth in Australia, Singapore and the UK helped to mitigate a decline in China.

The group’s taxi business saw revenue increase by 7.1 per cent to $255.6 million, with stronger contributions coming in from Singapore and Vietnam.

Revenue from the rail business rose 11.1 per cent to $33.3 million as average daily ridership for the North East Line and the Punggol and Sengkang LRTs grew by 15.7 per cent and 15.8 per cent to 418,000 and 57,000 respectively. Including rental and advertising income, total revenue from the rail business increased 10.2 per cent to $36.8 million.

Meanwhile, revenue contributions from its bus station business in Guangzhou, its vehicle inspection and testing services as well as its automotive engineering services were all higher in the second quarter.

The group’s overseas operations accounted for about 42 per cent of group revenue in Q2 2011, though the group aims to derive 70 per cent of its total revenue from overseas within the next four to six years.

‘The global economic uncertainty and the inflationary pressures in the countries we operate will continue to pose challenges for the group,’ said managing director and group CEO Kua Hong Pak. ‘However, with our strong balance sheet and low gearing, we will be well positioned to meet these challenges.’

Shares in ComfortDelGro closed at $1.26 yesterday, down one cent.

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