ComfortDelGro Q3 profit grows 5.4% on modest revenue gain

COMFORTDELGRO Corp's third-quarter net profit increased by 5.4 per cent to S$85.2 million as revenue grew in its transport-provision businesses.

The land transport company posted earnings of 3.97 Singapore cents per share for the three months ended September. Nine-month profit rose 6.3 per cent to S$233.7 million, or 10.9 Singapore cents per share.

ComfortDelGro shares eased 3.2 per cent or 10 Singapore cents to close at S$2.98 on Friday before the results were announced.

Revenue during the quarter inched up by one per cent to S$1 billion. That came on the back of sales growth in the bus, taxi, rail, car rental and leasing, and bus station businesses. However, sales declined in the car engineering, inspection and testing, and driving centre businesses.

Looking ahead, the company expects sales to improve in its bus, rail and taxi businesses. It expects to maintain revenue from its bus station business in Guangzhou, China, and from its driving centre and car rental and leasing businesses. Sales from the car engineering services and inspection and testing services businesses are expected to slip.