In view of impending fare hikes in public transport, it will be
good for us to note the following report on DelGro's reasonable
growth as follows.
=======================================================
ComfortDelGro's earnings slightly higher at $55.3m
Revenue rises 11% to $603m on higher fares, ridership and overseas
business
By Christopher Tan
May 11, 2006
The Straits Times
HIGHER fares, ridership and overseas contributions boosted
transport group ComfortDelGro Corp's revenue by 11.4 per cent to
$602.5 million in the first quarter ended March 31.
Net profits ended 1.3 per cent higher at $55.3 million, on the back
of significantly better investment income. But operating profit
fell by 12.1 per cent to $74.8 million because of increased costs.
Fuel and energy expenses shot up the most, rising 55.7 per cent to
$44.7 million on the back of escalating oil prices.
In terms of costs, insurance and accident compensation rose 52.5
per cent to $18 million, largely because of the absence of a
one-off $5 million write-back when group-wide insurance policies
were harmonised last year.
In absolute terms, staff costs rose the most, up $23.3 million to
hit $204.7 million, despite downsizing efforts in the Singapore
operations.
A bus and train fare hike last July helped raise subsidiary SBS
Transit's revenue by 5.2 per cent to $152 million. Its net earnings
rose 11.8 per cent to $14.6 million. Ridership on its MRT
North-East Line (NEL) has hit 210,000 per day - close to break-even
point - after the opening of Buangkok station in January.
Private property projects along the central portion of the line
will also contribute, as will the opening of Singapore's largest
mall VivoCity near HarbourFront station later this year.
Together with advertising revenue, losses on the NEL have narrowed
to $900,000, from $1.6 million previously.
ComfortDelGro's turnover from overseas operations hit 40 per cent
in the first quarter, up from 35 per cent. Operating profit from
abroad rose by 10 percentage points to 36 per cent.
A drop in its Singapore taxi business as a result of competition
was offset by better showing in its overseas cab businesses, but
overall taxi profit was down.
Yesterday, the group acquired a vehicle rental company in Scotland
- its first in Britain. It paid £pounds;650,000 ($1.91 million)
for Onward Travel, which has 160 owner-drivers and operates an
exclusive taxi service from Edinburgh Airport.
Despite selling more fuel to its cabbies, diesel earnings was 26.2
per cent lower at $4.5 million because of higher rebates to
cabbies. The group said 'geopolitical tensions are expected to keep
oil prices high' and this will continue to affect costs.
Group earnings per share rose from 2.65 cents to 2.67 cents, and
net asset value stood at 67.44 cents, up from 65.04
cents.
