ComfortDelGro profits fell 12.6% to $265.1m in 2019

This was due to reduction from existing businesses and the negative impact of foreign currency.

ComfortDelGro’s (CDG) recorded a full-year net profit of $265.1m in FY2019, 12.6% YoY lower than the $303.3m recorded in the previous fiscal year, the company announced in an SGX filing. Revenue climbed 2.6% YoY to $3.9b over the same period.

The group recorded an operating profit of $415.8m for 2019, which was 5.2% or $23m lower compared to $438.8m for 2018. The $20.2m increased contribution from new acquisitions was more than offset by a $35.8m reduction from existing businesses as a result of the above and net negative impact from the foreign currency translation of $7.4m.

Also read: ComfortDelGro's profits down 10.8% to $70m in Q3

CDG has proposed a final tax-exempt one-tier dividend of $0.529. This brings the total dividend for 2019 at $0.979 per share or a payout ratio of 80% if the final dividend is approved by shareholders at the Annual General Meeting on 24 April 2020.

Revenue from the public transport services business grew by 6.2% or $168.1m to $2.88b, with $139m coming from acquisitions in Australia in 2018 and 2019. Revenue was also buoyed by higher fees earned with higher mileage operated, better performance from bus services as well as higher fares and ridership from rail services.

But revenue for the taxi business fell by 8% or $57.9m to $668.6m due to strong competition, which resulted in a reduction in operating fleet.

Also read: ComfortDelGro to endure effects of coronavirus outbreak

Revenue from the CDGs inspection and testing services business also dropped by 6.1% or $6.7m to $103.8m in the absence of the net gain on the surrender of lease of property at Teban Gardens in Singapore in 2018.

CDG noted that since the COVID-19 outbreak, they are facing lower ridership numbers. “Our taxi, public transport and transport related businesses are witnessing lower ridership and volumes as we face significant operational challenges,” the company noted in the press release on their latest results.