5 reasons why ComfortDelGro's bus and rail earnings dropped 41%

SBS Transit disappoints in 3Q12.

According to Barclays, SBS Transit, a 75%-owned subsidiary of ComfortDelgro (CD SP), released its 3Q12 results after the market close on 9 Nov.

Here's more from Barclays:

3Q earnings were -41% y/y, mainly due to 1) lower average fare on buses and trains driven by easier access to the MRT and dilution from the Northeast Line to other lines with the improved connectivity of the MRT network, 2) higher depreciation charge & maintenance expenses from the renewal and expansion of the fleet, 3) higher staff costs, 4) increased finance costs and 5) the start-up costs relating to the Downtown Line.

We expect most of the headwinds to remain in 4Q12 and do not expect the 4Q12 earnings to recover strongly y/y. Having said that, we expect the bus & rail operation in Singapore to contribute approximately 15% only to ComfortDelgro’s 2012 operating profit.

Another 68%-owned listed subsidiary - VICOM (Not Rated), mainly engaged in vehicle inspection, also reported 3Q12 results after the market close on 8 Nov, which was +3% y/y, due to increased business volumes. We expect the unit to contribute 8% of ComfortDelgro’s 2012 operating profit.

ComfortDelgro is slated to report its 3Q12 earnings after the market on 12 Nov.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia