ComfortDelGro posts 6.5% increase in full-year profit

Singapore

NET profit of transport operator ComfortDelGro grew by 6.5 per cent to S$301.9 million for the year ended Dec 31, 2015, the group said on Friday.

The land transport giant's growth in net profit came even as revenue grew at a slower clip amid volatile currency movements.

Revenue, though eroded by foreign currency exchange volatility, grew by 1.5 per cent for the full year to S$4.11 billion.

ComfortDelGro stated that actual revenue increased by S$83.2 million, but this was partially offset by a negative foreign currency translation effect of S$23 million.

Earnings per share were at 14.07 Singapore cents, up from 13.29 Singapore cents in 2014.

No fourth-quarter numbers were released in the results posted on Friday, but in November last year, the group posted a 6.3 per cent increase in nine-month net profit to S$233.7 million when compared to the same period in 2014. Its nine-month revenue was at S$3.01 billion, registering a 1.5 per cent increase.

A tax-exempt one-tier final dividend of five Singapore cents has been proposed for 2015, up from 4.50 Singapore cents the previous year.

Revenue growth came from better performances in the bus, taxi, rail, and car rental and leasing businesses, with rail and car rental seeing the most growth.

Rail revenue grew by 8.4 per cent to reach S$213.4 million, due to the increase in average daily ridership and average fare. Revenue from car rental and leasing was S$38.4 million, 6.4 per cent higher than in 2014.

The group's overseas businesses were affected by foreign currency movements. Overseas revenue formed 40 per cent of group revenue last year.

Revenue from bus businesses was at S$2.12 billion, 3.1 per cent higher than in 2014.

"The actual revenue increase of S$99.5 million was partially eroded by an unfavourable currency translation of S$35.3 million from the weaker Australian dollar partially offset by the stronger British pound," the group said.

Taxi business revenue was S$1.33 billion, a 3.4 per cent increase. The actual revenue increase of S$33.2 million was boosted by a favourable foreign currency translation of S$9.9 million from the stronger Chinese yuan offset by the weaker Australian dollar.

Sales weakened in the automotive engineering services, inspection and testing services business, driving centre and bus station businesses.

Looking ahead, ComfortDelGro sees more revenue growth in its rail businesses as the second phase of Downtown Line is now open. It also expects a recent fare reduction in Singapore to negatively impact revenue from its bus business here.

ComfortDelGro shares closed four Singapore cents lower at S$2.79 apiece as Singapore shares closed flat on Friday.