ComfortDelGro 2Q earnings inches up 1.2% to $75.9m

SINGAPORE – Transport giant ComfortDelGro Corp posted a 1.2 per cent rise in earnings to $75.9 million for the second quarter, with higher public transport takings and contributions from new acquisitions offset by lower investment income, higher financing charges and unfavourable exchange rates.

The Singapore-based group lifted revenue 4.2 per cent to $980.8 million in the three months to Jun 30 while operating costs went up by 4.1 per cent to $865.8 million.

Net profit for the half year was 3.5 per cent higher at $146.3 million.

Earnings per share for the second quarter stood at 3.51 cents, up from 3.47 cents a year earlier. Net asset backing per share was 118.83 cents, from 120.7 as at Dec 31, 2018.

Margin before tax, interest and depreciation improved to 22.6 per cent, from 22 per cent same quarter last year.

The firm has declared an interim dividend of 4.5 cents, up from 4.35 cents last year.

Chief executive Yang Ban Seng said: “Despite an intensely competitive operating environment and growing global economic uncertainty, we continued to grow the business in the second quarter of this year.

“This was largely due to the strong contributions from the new businesses that we acquired last year and robust growth of the public transport services business.”

Mr Yang said ComfortDelGro has been “exploring new avenues of growth through technology-driven businesses”.

“Whilst not immediately profit-accretive, these strategic tie-ups are crucial in ensuring that we position ourselves for the future,” he noted.

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