ComfortDelGro’s net profit up 2.9% to $59.9m in Q2 2011

And 37% of its $843m revenue came from overseas bus operations.

In a statement, the copany noted that ComfortDelGro Corporation’s second quarter revenue increased by $53.7 million or 6.8% to $843.0 million compared to the same period last year. The bus business, led by the overseas operations, accounted for over 37% of the increase in Group revenue, followed closely by the taxi business with 31%. The automotive and engineering business, the rail business, the vehicle inspection and testing business, the bus station business and the car rental and leasing business accounted for the remaining 32%.

Revenue from the Group’s overseas operations accounted for 42.0% of Group revenue. Operating profit for the quarter increased by 3.7% to $103.0 million despite significant cost pressures, principally in fuel and electricity costs. Operating profit from the overseas businesses accounted for 45.5% of Group operating profit.

Net profit for the quarter increased by 2.9% to $59.9 million.

For the half-year ended 30 June 2011, Group revenue increased by 5.8% to $1.65 billion. Net profit however fell by 2.2% to $110.0 million on higher operating costs.  

Operations Review

• Bus:
At Group level, second quarter revenue from the bus business increased by 4.9% to $419.5 million as growth from operations in Australia, Singapore and the UK was offset by a decline in China. Revenue from overseas bus operations continued to account for the bulk of Group bus revenue – amounting to 63.1%.

Much of the growth came from the Group’s Australian bus business which saw revenue jump by 20.4% to $110.0 million, thanks to an increase in services and a favourable foreign currency translation effect.

Revenue from the bus business in the UK increased by 0.5% to $140.3 million during the quarter. Had it not been for the negative translation effect of the weaker Sterling Pound, revenue would have increased by $5.2 million or 3.7%.

Revenue from the China bus business was 13.3% lower at $14.4 million due mainly to the negative translation effect of the weaker Renminbi.

In Singapore, revenue from scheduled bus services under SBS Transit increased by 1.7% to $139.7 million for the quarter due to a 6.5% growth in average daily ridership. Including revenue from advertising and rental, total revenue at SBS Transit was 1.5% higher at $148.6 million. SBS Transit however came under intense cost pressure during the quarter on higher fuel and electricity costs. As a result, its bus business incurred an operating loss of $1.5 million - compared to an operating profit of $4.0 million during the same period last year.

The overseas bus business accounted for 63.1% of total Group bus revenue and 86.9% of Group bus operating profit. 

• Taxi:
At Group level, second quarter revenue from the taxi business increased by 7.1% to $255.6 million.

In Singapore, revenue from the taxi business increased by 8.3% to $184.6 million due to a larger operating fleet and an increase in cashless transactions.

In the UK, revenue from the taxi business fell by 6.0% to $33.1 million due mainly to the translation effect of the weaker Sterling Pound. In China, revenue from the taxi business was unchanged at $31.6 million as the increase in revenue of $2.3 million was negated by the negative foreign currency translation effect.

In Vietnam, revenue from the taxi business increased by 6.7% to $1.6 million.

The overseas taxi business accounted for 27.8% of total Group taxi revenue and 34.1% of total Group taxi operating profit.