Total trainwreck: ComfortDelGro's bus, train operating loss hit $3.6m

Thankfully, it didn't bring the whole group down.

Everyone at ComfortDelGro must have heaved a big sigh of relief as they found out that the whopping $3.6m operating loss incurred by its bus and train operations was buoyed by robust growth in its overseas operations.

According to OCBC, ComfortDelGro (CDG) reported 2Q14 results which were within expectations. PATMI rose 9.9% YoY to S$75.7m on the back of a 11.9% jump in revenue to S$1,016.3m.

The latter was underpinned by solid double-digit growth in its Bus (+18.4%) and Rail (+20.8%) segments.

Here's more from OCBC:

Although CDG continued to face challenging conditions in Singapore as it registered core operating losses in its bus and train operations (excluding advertising and rental income) amounting to S$3.6m, this was offset by positive growth in its overseas businesses.

Its overseas operations constituted 50.7% of its 2Q14 operating profit although revenue contribution was only 41.2%. For 1H14, CDG’s revenue and PATMI increased by 10.6% and 9.8% to S$1,967.1m and S$139.0m, forming 49.7% and 49.5% of our FY14 forecasts, respectively.

An interim dividend of 3.75 S cents/share was declared, an improvement from the 3 S cents/share declared in 1H13. This would be paid on 28 Aug.

CDG guided that the revenue for its Bus Station, Inspection & Testing Services, Car Rental and Leasing, and UK, Australia and Vietnam Taxi operations are expected to be maintained. With the exception of its Australia Bus business which is expected to record a decline in revenue, all other segments are expected to contribute positively to its topline.

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