ComfortDelGro's taxi business to keep struggling until 2H17

The firm will depend on Downtown Line’s opening for revenue growth.

Although ComfortDelGro’s (CDG) 1Q17 results came in largely within expectations of analysts at OCBC despite a 2.4% YoY decline in revenue to $972.0m, it is expected that CDG’s taxi business will still be enduring troubles to come moving forward through 2017, at least until the new Downtown Line opening.

“Looking ahead, we expect its CDG’s taxi business to continue to face headwinds while revenue growth will be driven by the expected opening of DTL3 in 2H17, which serves the most populated areas compared to the first two phases. As it takes time for ridership to ramp up, we forecast for DTL breakeven from FY19. On aforementioned reasons, we cut our FY17/18F PATMI by 3%/6% and lower our FV from S$2.95 to S$2.88,” OCBC said.

According to reports, CDG currently expects revenue for taxi business to be lower while public transport services revenue to be higher. CDG’s taxi fleet idle rate has also increased from an average of 1.4% in FY16 to 3.0%-3.5% in 1Q17, despite implementing revenue sharing schemes to help lower fixed rental costs for hirers to take it up. CDG’s fleet idle rate remains well below industry average in such a challenging environment.

However, not everything is troubling for CDG, as the firm has gotten some respite in the form of $11.1m in special dividends given its 9.6% stake in Cabcharge Australia. As a result, excluding this one-off special dividend, 1Q17 core PATMI came in flat at $72.7m, and formed 22.1% of OCBC’s FY17 forecast.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]