Its acquisitions in 2018 softened the impact from its weakening taxi business.
ComfortDelGro Corporation’s profits grew 1.2% YoY to $75.9m in Q2 from $75m in 2018, an announcement revealed. Revenues rose 4.2% YoY to $980.8m from $941.1m over the same period.
The revenue growth was driven by strong contributions from the acquisitions made in 2018, which offset the decline in its taxi business.
Operating costs during the quarter grew 4.1% to $865.8m as the firm stepped up hiring to support business growth, as well as higher repairs and maintenance costs. Group operating profit inched up 5% to $115m in Q2, after taking into account the net negative impact from the foreign currency translation effect of $2.1m from the weaker Australian Dollar, British Pound and Chinese Renminbi.
For the first half of the year, group revenue climbed 5.9% to $1.93b whilst net profit edged up 3.5% to $146.3m from $141.3 in 2018, reversing last year’s drop.
Revenue from the group’s public transport services segment grew registered growth of 7.9% to $723.8m as performances from its Singapore and Australia operations continue to rise. Around 80% of the revenue came from new acquisitions.
On the other hand, revenues from its taxi business dipped 8.3% to $166.9m, due to a smaller operating fleet. The fleet shrunk as a result of intensifying competition from the ride-hailing operators. Its inspection and testing services revenue inched up 1.6% to $25.7m.
“To ameliorate the negative impact, we will continue with efforts to replace the older taxis with new hybrid taxis which incur lower taxes and depreciation,” the company said in a statement, as it expects lower revenue from the taxi segment, car rental and leasing business.
Dividend for the period is at $0.045 apiece, with a payout ratio of 66.6%.
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