Middle East war hits ComfortDelGro’s UK taxi business; Q1 profit down 16.1%

[SINGAPORE] Transport player ComfortDelGro’s (CDG) net profit fell 16.1 per cent to S$40.5 million in the first quarter ended Mar 31, amid challenges in the taxi and private-hire vehicle business.

Revenue for the quarter was up 5 per cent at S$1.2 billion – of which S$814.5 million was from the public transport business. The segment’s revenue rose 7.2 per cent, while operating profit was up 2.7 per cent at S$37.7 million.

The public transport business was boosted by UK Metroline London public bus contracts renewals at improved margins, and higher fares and ridership in Singapore. Performance in Australia was also “broadly stable”, CDG said in its business update on Wednesday (May 13) after market hours.

However, the taxi and private-hire segment in the UK was affected by reduced airport transfers, as the Middle East conflict upends global travel.

The business was also hit by network contraction in Australia, from “competition and cautious consumer spending”. In Singapore, CDG’s fleet size shrank, in line with the broader fall in the city-state’s taxi numbers.

Revenue for the taxi and private-hire business thus fell 7.1 per cent to S$239.7 million. Operating profit was down 46.7 per cent at S$17.1 million.

CDG also recorded a 7.4 per cent rise in overall operating costs to S$1.1 billion.

Looking ahead, it said that its public transport business remains “resilient and robust”, with long-term contracts as well as indexation mechanisms and hedges to mitigate fuel-price volatility.

The company also believes that it has “adequate cash and facilities to cater for fleet capital expenditure and electrification”.

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CDG is in a net debt position of S$659.9 million as at Mar 31, an improvement from the S$730.1 million net debt position as at Dec 31, 2025. Operating cashflow added to its cash and short-term deposits, while borrowings fell with loan repayments.

CDG ended Wednesday at S$1.42, down by S$0.02 or 1.4 per cent.