ComfortDelGro Q3 earnings rise 5.3% to S$80.8m

LAND transport firm ComfortDelGro reported a net profit of S$80.8 million for the three months ended Sept 30, 2014, up 5.3 per cent from S$76.7 million a year ago.

Revenue grew 6 per cent to S$1.04 billion, from S$978.4 million a year ago.

Most segments saw an increase in revenue, including the bus businesses of Singapore (+11.5 per cent to S$204 million) and the UK (+12.4 per cent to S$224 million), and the Singapore taxi business (+8.7 per cent to S$247 million).

Australia was the only geography which saw a decrease in revenue. This was because of the loss of bus contracts as well as the depreciating Australian dollar. Revenue from the Australian bus business shrank 17.3 per cent to S$100 million.

Operating profit for the firm's core bus segment slipped from S$51 million to S$45.4 million.

The company said cost pressures will continue to be felt throughout the group. Revenue is expected to increase for both the Singapore and UK bus businesses. Revenue from the rail business is expected to be higher from operating the Downtown Line 1. But revenue from Australia is expected to decline.

Revenue from the taxi business in Singapore is expected to go up while revenue from the UK, Australia, China and Vietnam taxi businesses is expected to be maintained, the company said.

Earnings per share (EPS) for the third quarter were 3.78 cents, bringing nine-month EPS to 10.31 cents.

The company traded at S$2.62 a share, higher by a cent, before results were announced.