ComfortDelGro H1 profit at S$91m; revenue partly boosted by favourable foreign currency translation

TRANSPORT operator ComfortDelGro C52 logged S$91 million in net profit for six months ended June 2021, reversing a S$6.6 million loss in the year-ago period, with gradual resumption of global economy activity amid the pandemic.

It declared an interim dividend of 2.1 Singapore cents. Earnings per share stood at 4.2 Singapore cents.

Group revenue for the period rose 13.6 per cent to S$1.74 billion, partly boosted by a foreign exchange translation gain, the group said in a business update after trading hours on Friday.

S$150.9 million of this revenue growth came from underlying businesses, while S$57.9 million came from a positive translation effect of the stronger Australian dollar and Sterling pound.

Revenue from the group's public transport services business, including bus and rail, grew 11.3 per cent to S$1.4 billion, fuelled by higher rail ridership and fuel indexation in Singapore, and higher ad hoc charter activities in Australia. Taxi revenue for the period grew 26.5 per cent to S$255.9 million.

ComfortDelGro's managing director and group chief executive Yang Ban Seng described the past six months as "painful but tolerable".

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"The global situation continues to be difficult but it is definitely an improvement over the catastrophic conditions we all experienced last year. Whilst the situation may have improved compared to last year, the continuous see-saw effect of lockdowns and reopenings has taken its toll on businesses and the community alike," he said.

The group has looked at various ways to reduce costs and continues to review its business model, including accelerating digitalisation, so as to "remain nimble in an exceedingly trying environment", Mr Yang said.

Still, the group expects slow and uneven recovery in ridership, as well as changes to commuting patterns, technological disruptions and competition - factors that may depress revenues and margins.

It noted that while activity levels are recovering, outbreaks due to new Covid-19 variants have led to further restrictions across its operating geographies.

ComfortDelGro shares ended Friday up 0.62 per cent, or one Singapore cent, at S$1.62.