UK public transport segment drives 22.4% increase in ComfortDelGro’s Q3 net profit

[SINGAPORE] Transport operator ComfortDelGro’s (CDG) net profit for the third quarter ended September rose 22.4 per cent to S$70.4 million, driven by the performance of its UK public transport business.

The company enjoyed contract renewals for its London public transport business at improved margins, and added new public transport contracts in Manchester from January, CDG said in a business update on Wednesday (Nov 12).

Revenue for the quarter rose 12.9 per cent to S$1.3 billion. Of this, S$865.4 million came from the public transport segment, up 6.2 per cent from the year-ago period.

CDG’s taxi and private-hire segment’s Q3 revenue rose by 43.7 per cent to S$258.5 million.

The company last year acquired Australian taxi network A2B and London black taxi provider Addison Lee.

However, the segment’s operating profit fell 14.3 per cent to S$30.6 million, as intensifying competition from ride-hailing companies in Australia led to its network contracting.

CDG’s net debt position deepened to S$695.6 million as at Sep 30, from S$218.2 million as at Dec 31, 2024.

This was due to the funding of capital expenditure for CDG’s Metroline Manchester fleet and London electric buses.

Funding was also directed towards CDG’s purchase of the shares it did not already own in Singapore’s CityCab.

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Full ownership of CityCab strengthens CDG’s core point-to-point business in Singapore “while allowing the group to better integrate and shape its global point-to-point business”, the company said in the update.

CDG shares ended Wednesday at S$1.48, up S$0.01 or 0.7 per cent.