ComfortDelGro's Q2 net profit dips 6.8% to $79.4m

Revenue also dropped 3.4% to $987.2m.

ComfortDelGro Corporation was on a rocky road in the past quarter, with its net profit going down by 6.8% to $79.4m.

According to the group, this came with the 3.4% revenue drop to $987.2m. An actual revenue drop of $16.9m was exacerbated by a negative foreign currency translation effect of $18.2m, led mainly by the weaker Sterling Pound.

Meanwhile, the group operating costs during the quarter fell by $24.1m or 2.7% to $875.3m as an actual drop in operating costs of $7.3m was aided by a positive foreign currency translation effect of $16.8m. Its operating profit also fell by $11m or 9.0% to $111.9m.

A reduction in finance costs and taxation, as well as an increase in profit contribution from the acquisition of the remaining 49% minority stake in ComfortDelGro Corporation Australia, helped to boost the bottom line during the quarter.

“While the performance of the public transport segment remains robust, the group continues to face intense competition and challenges in the taxi segment, both in Singapore and overseas. The rapid growth of the private hire industry, fuelled by incentives and subsided fares, is something we continue to watch closely,” ComfortDelGro CEO Yang Ban Seng said.