ComfortDelGro posts 10.8% fall in Q3 net profit to S$70m

COMFORTDELGRO Corp's net profit fell 10.8 per cent to S$70 million for the third quarter ended Sept 30 from S$78.5 million a year ago, the transport operator said in a bourse filing on Wednesday.

Revenue edged up 1.1 per cent to S$979 million on increased contributions from new acquisitions mainly in the public transport services business. This was offset by unfavourable exchange rates from the weaker British pound and Australian dollar, and decreases from existing businesses.

Earnings per share was 3.23 Singapore cents, down from 3.63 cents a year ago.

For the nine months ended Sept 30, net profit was down a marginal 1.6 per cent to S$216.3 million from S$219.8 million a year ago. Revenue was up 4.3 per cent to S$2.9 billion, and earnings per share was 9.99 Singapore cents, compared with 10.16 cents in the corresponding period of the previous year.

Net asset value per ordinary share was 116.33 cents, compared with 120.7 cents as at Dec 31, 2018.

No dividend was declared for the period under review.

ComfortDelGro CEO Yang Ban Seng said the weakening global economic and political environment has weighed on the group's businesses, which continue to face intense competition.

"Despite the significant challenges, we have managed to grow our topline, with stronger contributions from our overseas businesses," he said, noting that the Australian operations have performed particularly well on the back of acquisitions made last year. ComfortDelGro's public transport business continues to grow in revenue and profit, Mr Yang added.

"Going forward, we will continue to look out for investment opportunities and build on our strengths in the mobility sphere."

ComfortDelGro shares closed down one Singapore cent or 0.42 per cent to S$2.38 on Wednesday before the results were announced.