ComfortDelGro’s profit up 3.1% to $236m in 2011

As its bus segment posted strong growth in its overseas operations.

ComfortDelGro Corporation’s full-year revenue increased by 6.4% to a record $3.41 billion on the back of broad-based segmental growth. The growth would have been even stronger at 6.9% had it not been for the negative translation effect of the weaker Sterling Pound, Chinese Renminbi and Vietnamese Dong. 

In line with the growth in revenue, operating profit for the year ended 31 December 2011 was 2.8% higher at $399.2 million. Full-year net profit increased by 3.1% to $235.6 million.

Operations Review

Bus
At Group level, full-year revenue from the bus business increased by 4.5% to $1.69 billion on the back of strong growth overseas. If not for the negative foreign currency translation effect, revenue from the Group’s bus business would have grown by 4.9% or $79.3 million.

In Singapore, bus revenue at SBS Transit increased by 3.1% to $566.1 million as average daily ridership grew by 6.0% - more than compensating for the 2.5% drop in average fares. If bus advertising and rental income were included, total revenue would be 3.1% higher at $603.5 million.

For its core bus business, however, SBS Transit incurred an operating loss of $6.0 million as compared to an operating profit of $14.9 million in 2010 due mainly to higher fuel costs. The Group’s unscheduled bus business in Singapore recorded a 24.9% decrease in revenue to $25.0 million in 2011 due to the absence of contract work for the Youth Olympic Games which took place in 2010.

In Australia, revenue from the bus business grew by 19.5% to $445.8 million, boosted by growth in services operated and the strengthening of the Australian Dollar.

The bus business in the United Kingdom, with a full-year revenue of $558.2 million, remained the single largest contributor to overseas bus revenue despite the weaker Sterling Pound. Revenue from the bus operations in London increased by $20.0 million due to more mileages operated and contract price adjustments. This was however more than offset by a negative currency translation effect of $23.8 million.

In China, revenue from the bus business slipped by 11.5% to $53.8 million from lower mileages operated as a result of road diversions from the construction of the Shenyang Metro.

Overseas bus revenue accounted for 62.7% of total Group bus revenue in 2011, compared to 61.7% in the previous year. Significantly, operating profit from the Group’s overseas bus operations crossed the 80%-mark for the first time, accounting for 85.8% of total Group bus operating profit.

Taxi
At Group level, full-year revenue for the taxi business increased by 5.8% to $1.04 billion, crossing the billion-dollar threshold for the very first time. The increase in revenue would have been larger at $64.3 million or 6.5% if not for the negative translation effect of the weaker Sterling Pound, Vietnamese Dong and Chinese Renminbi.

In Singapore, revenue from the taxi business was 7.6% higher at $748.7 million due to higher rental income from a larger fleet, an increase in new replacement taxis and a higher volume of cashless transactions. In Australia, Swan Taxis, which was acquired in October 2010, contributed its maiden full-year revenue in 2011 – amounting to $20.0 million.

In China, revenue from the taxi business increased by 7.5% to $133.8 million as the operations in Chengdu, Suzhou, Nanning and Nanjing added a total of 929 new taxis to the combined fleet.

In the UK, revenue from the taxi business decreased by 13.1% to $129.9 million due to fewer Taxicard and corporate account bookings resulting from the slowdown in the UK economy.

In Vietnam, the increase in revenue from the taxi business was more than offset by the negative foreign currency translation effect. As a result, revenue fell by 8.1% to $6.8 million.

Revenue and operating profit from the Group’s overseas taxi operations accounted for 28.0% and 35.3% of total Group taxi revenue and operating profit respectively.

Rail
Revenue from the rail business increased by 10.5% to $134.4 million as ridership for both the North East Line and the Light Rail Transit Systems grew. Average daily ridership for NEL and the Sengkang and Punggol LRTs increased by 12.9% to 427,400 and 15.7% to 60,000 respectively. If advertising and rental income was included, total revenue would be $147.0 million, representing an increase of 9.4% over the previous year.

Bus Station
Revenue from the bus station business increased by 5.3% to $23.9 million as growth in the number of passengers using the station, higher cargo revenue and higher rental income more than offset the negative foreign currency translation effect.

Vehicle Inspection and Testing
Revenue from the Group’s vehicle inspection and testing business grew by 8.7% to $93.5 million due to an increase in the number of vehicles inspected and more projects completed by the testing business under Setsco Services.

Automotive Engineering Services
Revenue for the automotive engineering services business increased by 13.8% to $449.7 million due mainly to higher revenue from taxi maintenance and vehicle assembly.

Driving Centre
Revenue from the driving centre business increased by 1.8% to $39.0 million with higher student enrolment.

Car Rental and Leasing
Revenue from the car rental and leasing business increased by 5.3% to $35.5 million due to better utilisation rates in Singapore.