ComfortDelGro profits fell 48.9% to $36m in Q1

This is due to the decline in revenue from public transportation services and taxis.

ComfortDelGro’s (CDG) recorded a 48.9% YoY plunge in profits after tax and minority interests (PATMI) in Q1 with $36m from $70.4m in 2019, the company announced in an SGX filing. Revenue declined 9% YoY to $862.4m over the same period.

The group recorded an operating profit of $55.9m in Q1, 47.9% lower compared to $107.4m in 2019.

This comes after revenue from public transportation services and taxis went down in the quarter. CDG noted that lockdowns in Singapore, Australia, and the UK will significantly affect the business in H1 2020.

Meanwhile, revenue from the public transport services business fell to $656.3m from $684.9m, with $139m coming from acquisitions in Australia in 2018 and 2019. This is attributed to higher rail fares, which were more than offset by the bus fuel indexation impact in Singapore, as well as the COVID-19 impact on tourism in the UK and lower Australian dollar.

Revenue for the taxi business fell by $44.1m to $127.8m due to smaller Singapore fleet and rental reduced in China’s taxis. Revenue from CDG’s inspection and testing services remained stable but some business activities are restricted, whilst majority continue at lower volumes

CDG added that they are in close coordination with respective transport authorities and are actively pursuing initiatives to mitigate the business impacts. The company is said to be one of the most affected by the lockdowns in the major cities with land transport as its core business.