ComfortdelGro profits dipped 2% to $78.5m in Q3

Net income from investments dipped due to lower dividend from Cabcharge Australia.

ComfortdelGro (CDG) saw its profits slip 2% YoY from $80.1m to $78.5m in Q3 2018, an announcement revealed. Meanwhile, revenue climbed 8.5% YoY to $967.9m from $891.7m.

The firm revealed that the profits dropped as net income from investments dipped due to lower dividend received from Cabcharge Australia.

Meanwhile, operating costs jumped 9.5% YoY to $854.5m over an increase in staff costs associated with the increased headcount needed to support SBS Transit’s Seletar Bus Package, higher mileages operated, new services and staff costs from newly acquired subsidiaries, higher fuel and electricity as well as repairs and maintenance costs.

The firm also noted that operating profit inched up 1.7% to $113.4m in Q3 mainly backed by stronger performance from the public transport services business and contributions from newly acquired businesses.

Also read: Is the worst over for ComfortDelGro?

CDG’s revenue from public transport services jumped 15.2% to $692.9m backed mainly by higher fees earned with higher mileages operated due to the commencement of the Seletar Bus Package in March 2018, higher ridership from rail services with the commencement of Downtown Line Stage 3 (DTL3) in Singapore and contributions from new acquisitions in Australia and the UK.

For its taxi fleet, revenue dropped 9.4% to $182m amidst a reduction in operating fleet.

“Revenue from the public transport service business in Singapore is expected to grow,” CDG commented. “Bus service revenue is expected to increase with the commencement of the Seletar Bus Package from March 2018 and the Bukit Merah Bus Package in Q4.”

Also read: ComfortdelGro H1 profits fell 12.7% to $141.3m

They added that rail service revenue is also expected to be higher due to the full year contribution from Downtown Line 3.

“The group will continue to look for acquisition opportunities,” the firm commented. “Whilst the operating environment is expected to remain competitive and challenging, costs will continue to be managed prudently.”