ComfortDelGro (CDG) has reported earnings of $106 million for the 1HFY2025 ended June, 11.2% higher y-o-y.
Earnings per share (EPS) also rose by 11.1% y-o-y to 4.89 cents.
Revenue was up by 14.4% y-o-y to $2.42 billion with overseas revenue accounting for over 50% of the group’s revenue for the first time. For the six-month period, CDG's overseas revenue stood at $1.32 billion of overall revenue, compared to Singapore's revenue of $1.11 billion.
Operating profit rose by 22.8% y-o-y to $172.5 million. The group’s public transport segment saw operating profit increase 29.6% y-o-y as the group’s London bus contracts were renewed at better margins. The higher operating profit for the segment was also attributed to the commencement of the group’s four bus franchises in Greater Manchester as part of the Bee Network.
Operating profit for the group’s taxi & private hire segment was up by 20.6% y-o-y with full contributions from the UK’s Addison Lee and Australia’s A2B and amid increasing competition in Singapore and continuing economic challenges in China.
Overseas operating profit was up by 67.8% y-o-y mainly due to the full contribution from the acquisitions made in 2024, Addison Lee, CMAC and A2B.
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Ebitda for the six months was up by 16.1% y-o-y to $364.9 million.
For the period, the group has proposed a one-tier dividend of 3.91 cents per share, representing a payout ratio of 80% and higher than its previous interim dividend of 3.52 cents per share in 1HFY2024.
“The increase in overseas earnings reflects our focus on pursuing profitable international growth,” says Cheng Siak Kian, managing director and group CEO of ComfortDelGro. “The international public transport business continues to do well, underpinned by our ability to collaborate effectively with our clients to deliver valued services to support their transport goals.”
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He adds: “We continue to drive greater operational efficiencies and growth opportunities for our global taxi and private-hire network”.
The group will also remain committed to executing its strategy in a disciplined manner in a time of uncertainty. This includes leveraging technologies such as artificial intelligence (AI) and autonomous vehicles (AVs), he adds.
In its Aug 13 statement, CDG says it is continuing to invest in AV technologies such as robotaxis in China and AV shuttles in Singapore. The group also shared that it has been asked to take part in Singapore’s AV steering committee, contributing to the city-state’s phased introduction of driverless vehicles.
CDG has also continued to use AI across its operations to optimise efficiency and improve services for its public transport businesses around the world. For instance, Metroline introduced AI-powered scheduling to enhance its operations in London while SBS Transit in Singapore uses AI for predictive maintenance, reduce vehicle downtime, assist passengers and support its drivers.
“Our track record as part of Singapore’s world-class transport system allows us to build a strong centre of excellence which underpins our overseas success and growth. We will continue to build more of these deep capabilities with our investment in AV and AI to meet evolving global mobility trends as part of our long-term strategy,” says CDG chairman Mark Greaves.
In its outlook statement, the group expects to see higher rail revenue in Singapore along with a “steady growth” in ridership. On the other hand, manpower costs are also anticipated to rise amid a tight labour market and offset by the easing of fuel and energy costs. It adds that it is waiting for the results of the tender for its Tampines bus package.
In the UK and Europe, it expects to renew its London bus contracts at improved margins. The group is also taking part in the ongoing Liverpool public bus franchise tender and anticipates further regional bus tenders. Its metro contract with its JV, Connecting Stockholm, will begin from November this year.
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In Australia, the group says its Metropolitan Zero Emission Bus franchises in Victoria have begun in July this year and have increased the group’s market share in the state by 30%. It adds that the industry-wide shortage of drivers is “slowly easing”, while the pay negotiations with the drivers in Victoria is “ongoing” with “potential additional sporadic industrial action activities”.
While the group previously announced its bid for the Sydney Metro West rail tender with UGL Group and Hyundai Rotem, it says it is now “in the process of bidding” to operate and maintain the metro lines in Melbourne from 2027. The bidding will be conducted as part of a consortium with UGL Group, East Japan Railway and Marubeni Corp.
For its taxi & private hire segment, the group expects premium and large business-to-business (B2B) business segments to remain “stable”.
“SME (small- and medium-sized enterprises) B2B business demand is expected to remain muted as economic uncertainties persist,” reads the statement, while the business-to-consumer (B2C) mass market segment is “expected to remain under pressure” with the “intense competition” from ride hailing companies.
Revenues from the group’s inspection & testing services are expected to remain “elevated” with the ongoing full-scale installation of on-board units (OBUs) for the Electronic Road Pricing (ERP) 2.0.
Revenues for other private transport in the UK and Europe are also expected to increase with the latest “On The Beach” contract secured by CMAC’s Suntransfers. On The Beach is one of the UK’s largest online holiday providers with a customer base of around 2 million passengers annually.
Finally, other segments are expected to remain stable.
On the trade tariffs as well as geographical and trade tensions, the group says it will continue to monitor the foreign exchange (forex) and interest rates “closely” and take “appropriate measures” where necessary.
Shares in ComfortDelGro closed at $1.58 on Aug 13.
