ComfortDelgro – BT
ComfortDelGro’s Q4 profit up 3.5%
Full-year net up 3.1% at $235.6m; rise driven mainly by taxi, rail businesses
COMFORTDELGRO’S net profit for the 2011 fourth quarter climbed 3.5 per cent to $56.5 million, from $54.6 million a year earlier.
The rise in profit attributable to shareholders came on the back of a 7.2 per cent year-on-year rise in group revenue to $887.2 million.
Total operating expenses for the quarter increased 7.7 per cent to $791.5 million, contributed in part by a 20.2 per cent year-on-year surge in fuel and electricity costs to $73.9 million. The quarter saw taxi drivers’ benefits dropping 14.2 per cent to $19.3 million.
For the full year ended Dec 31, 2011, net profit rose 3.1 per cent to $235.6 million, with the increase driven mainly by its taxi and rail businesses.
Full-year revenue climbed 6.4 per cent to a record $3.41 billion, with the land transport giant attributing growth from all business segments. Revenue could have been higher if not for the negative foreign currency effect of $16.0 million.
Group operating expenses for the 12 months rose 6.9 per cent to $3.01 billion on increases in materials and consumables, fuel and electricity costs, staff costs and depreciation, among others, although these were mitigated by a positive foreign currency translation effect of $20.2 million. For example, materials and consumables jumped 23.8 per cent to $336.4 million, while fuel and electricity costs surged 20.7 per cent to $283.3 million. Staff costs, the group’s biggest cost component, rose 5.0 per cent to $1.04 billion. Taxi drivers’ benefits fell 14.3 per cent to $66.7 per cent.
Operating profit was 2.8 per cent higher at $399.2 million.
ComfortDelGro said that overseas operating profit accounted for 45.8 per cent of group operating profit, while overseas revenue made up 42.2 per cent of group revenue. Its global fleet size of buses, taxis and rental vehicles has also increased to a record of some 46,300 vehicles.
Full year earnings per share rose to 11.26 cents from 10.95 cents, while the group’s net asset value was 90.46 cents as at Dec 31, 2011, up from 86.20 cents 12 months earlier.
A final dividend of 3.30 cents per share has been proposed.
As its biggest business segment, buses brought in revenue of $1.69 billion for the group in 2011, or up 4.5 per cent. Operating profit slipped 2.8 per cent to $145.0 million due mainly to decreases in SBS Transit and the China bus business but was offset by an increase in the Australian bus business. The operating profit of the overseas bus business continued to outstrip that of the Singapore bus business and accounted for 85.8 per cent of group bus operating profit.
The group’s taxi business chalked up revenue of $1.039 billion or a 5.8 per cent hike, with taxi revenue crossing the $1 billion mark for the first time thanks to a larger global fleet. Operating profit rose 8.6 per cent to $129.6 million. In Singapore, revenue from the local taxi business climbed 7.6 per cent to $748.7 million due to an increase in replacement taxis, a larger fleet, and a higher volume of cashless transactions. Operating profit was 9.7 per cent higher at $83.8 million.
Revenue from the rail business grew 10.5 per cent to $134.4 million due to an increase in average daily ridership and in spite of lower average fares, with operating profit rising 8.2 per cent to $27.7 million.
Also showing an improvement in operating profit was the vehicle inspection and testing business. Revenue rose 8.7 per cent to $93.5 million, with operating profit rising 12.5 per cent to $30.7 million as more cars were inspected and higher sales were achieved by Setsco Services.
Looking ahead, ComfortDelGro sees bus and rail ridership increasing at a slower rate because of the expected economic slowdown. It expects revenue from the UK bus business to continue being affected by the currency translation effect of the weaker pound sterling. But improvements are likely from the Australian bus business, and the taxi businesses in Singapore, China and Australia.
ComfortDelGro shares closed trading yesterday at $1.48, up half a cent.
ComfortDelgro – BT
ComfortDelGro’s Q4 profit up 3.5%
Full-year net up 3.1% at $235.6m; rise driven mainly by taxi, rail businesses
COMFORTDELGRO’S net profit for the 2011 fourth quarter climbed 3.5 per cent to $56.5 million, from $54.6 million a year earlier.
The rise in profit attributable to shareholders came on the back of a 7.2 per cent year-on-year rise in group revenue to $887.2 million.
Total operating expenses for the quarter increased 7.7 per cent to $791.5 million, contributed in part by a 20.2 per cent year-on-year surge in fuel and electricity costs to $73.9 million. The quarter saw taxi drivers’ benefits dropping 14.2 per cent to $19.3 million.
For the full year ended Dec 31, 2011, net profit rose 3.1 per cent to $235.6 million, with the increase driven mainly by its taxi and rail businesses.
Full-year revenue climbed 6.4 per cent to a record $3.41 billion, with the land transport giant attributing growth from all business segments. Revenue could have been higher if not for the negative foreign currency effect of $16.0 million.
Group operating expenses for the 12 months rose 6.9 per cent to $3.01 billion on increases in materials and consumables, fuel and electricity costs, staff costs and depreciation, among others, although these were mitigated by a positive foreign currency translation effect of $20.2 million. For example, materials and consumables jumped 23.8 per cent to $336.4 million, while fuel and electricity costs surged 20.7 per cent to $283.3 million. Staff costs, the group’s biggest cost component, rose 5.0 per cent to $1.04 billion. Taxi drivers’ benefits fell 14.3 per cent to $66.7 per cent.
Operating profit was 2.8 per cent higher at $399.2 million.
ComfortDelGro said that overseas operating profit accounted for 45.8 per cent of group operating profit, while overseas revenue made up 42.2 per cent of group revenue. Its global fleet size of buses, taxis and rental vehicles has also increased to a record of some 46,300 vehicles.
Full year earnings per share rose to 11.26 cents from 10.95 cents, while the group’s net asset value was 90.46 cents as at Dec 31, 2011, up from 86.20 cents 12 months earlier.
A final dividend of 3.30 cents per share has been proposed.
As its biggest business segment, buses brought in revenue of $1.69 billion for the group in 2011, or up 4.5 per cent. Operating profit slipped 2.8 per cent to $145.0 million due mainly to decreases in SBS Transit and the China bus business but was offset by an increase in the Australian bus business. The operating profit of the overseas bus business continued to outstrip that of the Singapore bus business and accounted for 85.8 per cent of group bus operating profit.
The group’s taxi business chalked up revenue of $1.039 billion or a 5.8 per cent hike, with taxi revenue crossing the $1 billion mark for the first time thanks to a larger global fleet. Operating profit rose 8.6 per cent to $129.6 million. In Singapore, revenue from the local taxi business climbed 7.6 per cent to $748.7 million due to an increase in replacement taxis, a larger fleet, and a higher volume of cashless transactions. Operating profit was 9.7 per cent higher at $83.8 million.
Revenue from the rail business grew 10.5 per cent to $134.4 million due to an increase in average daily ridership and in spite of lower average fares, with operating profit rising 8.2 per cent to $27.7 million.
Also showing an improvement in operating profit was the vehicle inspection and testing business. Revenue rose 8.7 per cent to $93.5 million, with operating profit rising 12.5 per cent to $30.7 million as more cars were inspected and higher sales were achieved by Setsco Services.
Looking ahead, ComfortDelGro sees bus and rail ridership increasing at a slower rate because of the expected economic slowdown. It expects revenue from the UK bus business to continue being affected by the currency translation effect of the weaker pound sterling. But improvements are likely from the Australian bus business, and the taxi businesses in Singapore, China and Australia.
ComfortDelGro shares closed trading yesterday at $1.48, up half a cent.
STEng – BT
ST Engg offer to Nera good for all: DMG analysts
THE offer by Singapore Technologies Engineering (ST Engg) to take Nera Telecommunications private is – according to DMG & Partners Research – a positive move for both companies and their shareholders.
In a report released yesterday, Edison Chen and Terence Wong of DMG said that ‘the valuation is fair and (Nera) shareholders should accept the offer’.
Calling it a win-win outcome, the analysts said: ‘The acquisition allows (ST Engg’s electronics arm) to leverage Nera’s in-depth expertise in system integration in the fields of both telecommunications and info-communications, to enhance its existing business in terrestrial and wireless broadband networks.’
‘On the other hand, shareholders of Nera can also monetise their investments with an offer price that is equivalent to 12.1x FY2011 price-to-earnings (8.6 ex-cash), and is around our intrinsic value estimates of 47 cents per share.’
Late last Friday night, ST Engg announced the move to acquire Nera by way of a scheme of arrangement. If successful, the move will see the generally thinly-traded Nera delisted from the Singapore Exchange (SGX) mainboard.
Nera shareholders stand to receive an aggregate cash amount of 45 cents per share, comprising 6 cents to be paid by Nera as a cash dividend, and 39 cents to be paid by ST Engg. The acquisition consideration, excluding the dividend, is $141.1 million.
Said the analysts: ‘Since we put up a ‘buy’ recommendation for Nera back in October 2011, the share price has surged 43 per cent, surpassing our target price of 47 cents. The offer price may be lower than the last traded, but this is largely due to investors playing up the shares of what was once a quiet stock.’
ST Engg said separately yesterday that its marine arm has won two shipbuilding contracts worth about $75 million from a wholly owned subsidiary of Swire Pacific. It also announced that wholly-owned ST Electronics (Info-Comm Systems) has acquired a further 2.77 per cent stake in Telematics Wireless for US$1.1 million.
Nera’s share price fell 11 per cent to close trading at 44.5 cents yesterday. ST Engg closed 0.33 per cent higher at $3.
STEng – BT
ST Engg offer to Nera good for all: DMG analysts
THE offer by Singapore Technologies Engineering (ST Engg) to take Nera Telecommunications private is – according to DMG & Partners Research – a positive move for both companies and their shareholders.
In a report released yesterday, Edison Chen and Terence Wong of DMG said that ‘the valuation is fair and (Nera) shareholders should accept the offer’.
Calling it a win-win outcome, the analysts said: ‘The acquisition allows (ST Engg’s electronics arm) to leverage Nera’s in-depth expertise in system integration in the fields of both telecommunications and info-communications, to enhance its existing business in terrestrial and wireless broadband networks.’
‘On the other hand, shareholders of Nera can also monetise their investments with an offer price that is equivalent to 12.1x FY2011 price-to-earnings (8.6 ex-cash), and is around our intrinsic value estimates of 47 cents per share.’
Late last Friday night, ST Engg announced the move to acquire Nera by way of a scheme of arrangement. If successful, the move will see the generally thinly-traded Nera delisted from the Singapore Exchange (SGX) mainboard.
Nera shareholders stand to receive an aggregate cash amount of 45 cents per share, comprising 6 cents to be paid by Nera as a cash dividend, and 39 cents to be paid by ST Engg. The acquisition consideration, excluding the dividend, is $141.1 million.
Said the analysts: ‘Since we put up a ‘buy’ recommendation for Nera back in October 2011, the share price has surged 43 per cent, surpassing our target price of 47 cents. The offer price may be lower than the last traded, but this is largely due to investors playing up the shares of what was once a quiet stock.’
ST Engg said separately yesterday that its marine arm has won two shipbuilding contracts worth about $75 million from a wholly owned subsidiary of Swire Pacific. It also announced that wholly-owned ST Electronics (Info-Comm Systems) has acquired a further 2.77 per cent stake in Telematics Wireless for US$1.1 million.
Nera’s share price fell 11 per cent to close trading at 44.5 cents yesterday. ST Engg closed 0.33 per cent higher at $3.
SingTel – BT
SingTel Q3 profit drops on weaker contributions
Group’s profit of $902m falls short of analysts’ average estimated net profit
SINGAPORE Telecommunications (SingTel) saw a 9.6 per cent drop in third-quarter net profit from $998 million to $902 million on weaker contributions from its associates, with Bharti’s 3G losses making themselves felt.
The group’s quarterly performance fell short of the $922 million average estimated net profit by four analysts that Reuters surveyed.
Earnings per share for the three-month and nine-month period ended Dec 31, 2011 stood at 5.66 cents and 16.95 cents respectively, down from 6.28 cents and 17.79 cents a year ago.
Group revenue for the same period grew 2.7 per cent to $4.83 billion, boosted by a better performance from local operations and Optus.
SingTel’s share of its associates’ ordinary pre-tax earnings shrank 8.3 per cent to $475 million. Bharti accounted significantly for the shrinkage, with its contribution falling 30.3 per cent to $128 million.
The Indian operator incurred higher costs from its 3G rollout, while its venture in Africa took a hit from acquisition financing costs.
SingTel’s group CEO Chua Sock Koong pointed out, however, that Bharti’s African operations had made ‘impressive’ progress, with a 16 per cent increase in operating revenue to US$1.06 billion because of higher customer base and increased average minutes of use.
‘Execution in Africa has been tracking well,’ Ms Chua said.
Where Bharti’s Indian operations are concerned, the magnitude of the fallout from the Indian Supreme Court’s move to yank back 122 telco licences awarded in 2008 remains difficult to determine.
‘It is still too early to say how it will affect Bharti . . . The terms of the new licences are not out yet,’ Hui Weng Cheong, SingTel’s CEO International, said.
Indonesia’s Telkomsel and Thailand’s AIS saw improved earnings, with contributions that were 5.6 per cent and 23.4 per cent higher, at $226 million and $84 million, respectively.
The group’s losses from its investments in Warid and Pacific Bangladesh Telecom Ltd (PBTL), however, widened to losses of $15 million and $11 million, respectively.
Back in Singapore, the group’s local operations posted a 4.3 per cent dip in net profit for the quarter, at $333 million, driven in part by higher subscriber acquisition costs. This was compounded by structural separation costs that the telco booked.
Local operating revenue for the quarter grew 2.5 per cent to $1.68 billion on the back of higher handset sales fuelled by the iPhone 4S. SingTel’s mobile customer base also enjoyed a 9.9 per cent lift, growing by 61,000 to 3.55 million.
Its fibre rollout revenue saw a drop, coming in 38.8 per cent lower at $44 million, as it passed the peak of its OpenNet rollout. As of end-2011, OpenNet had more than 80 per cent coverage of homes here. Meanwhile, SingTel’s fibre customer base grew to 55,000, up 18,000 year on year.
mio TV’s revenue for the quarter saw a 32 per cent growth in revenue to $28 million, as its customer base grew by 18,000 during the quarter to 353,000.
The telco said yesterday that it will throw its hat into the ring for the 2013-2016 package of broadcasting rights for the Barclays Premier League (BPL) when bidding starts in March. As of last August, pay-TV operators were obliged to make available their competitors’ exclusive content if their subscribers request it. This reduced some of the impetus for signing exclusive content.
Before the new guidelines kicked in, SingTel won the exclusive broadcast rights for the previous BPL cycle, for what was rumoured to cost at least $300 million.
Allen Lew, SingTel’s CEO, said that this time, any bidding will ‘take into consideration the new regime’.
‘It would be premature for me to discuss this but we are well-prepared . . . we are starting the process,’ Mr Lew said.
On the Australian front, Optus saw its quarterly net profit grow 4.4 per cent to A$177 million (S$238.7 million), boosted by increased service revenue and lower subscriber costs.
For the nine months ended Dec 31, 2011, net profit for the group fell 4.7 per cent to $2.7 billion, even as group revenue grew 4.6 per cent to $14.05 billion.
Its counter closed six cents higher at $3.13 in trading yesterday.