ComfortDelGro Corporation (C52) H1 2023 earnings summary

Executive summary

• 1H2023 revenue rose 1.0% YoY to $1,862.3m; reported PATMI fell 31.9% to $78.5m, but declined 7.4% excluding the prior-year Alperton disposal gain.

• Performance improved sequentially: 2Q2023 PATMI rose 39.3% QoQ to $45.7m, while 1H operating profit increased 18.5% versus 2H2022.

• Net cash was $549.8m and gross gearing was 10.9% at 30 June 2023.

Financial highlights

• Revenue was $1,862.3m, up 1.0% YoY; underlying business growth of $81.2m was partly offset by $62.2m adverse FX translation.

• Operating profit was $117.2m, down 31.5% YoY; operating costs were $1,745.1m, up 4.4%, and EBITDA was $296.0m, down 4.5%.

• PATMI was $78.5m, down 31.9% from $115.3m; excluding the $30.5m after-tax Alperton disposal gain in 1H2022, PATMI declined 7.4%.

• Profit before tax was $123.7m, down 27.5%; profit after tax was $100.0m, down 26.3%; EPS was 3.62 cents, down from 5.32 cents.

• Net investment income rose to $14.9m from $4.0m, while finance costs increased to $9.3m from $4.9m, mainly reflecting higher interest rates.

Outlook and guidance

• Public Transport earnings are expected to continue recovering through 2H2023, supported partly by wage and energy indexation on public bus contracts.

• Singapore Public Transport revenue is expected to remain stable; UK revenue is expected to increase as indexation and higher fees on future tenders partly offset past cost increases.

• Australia Public Transport is expected to remain stable following awards of NSW regions 4, 12 and 14; new contract terms began in 2Q2023.

• Singapore Taxi/PHV revenue is expected to grow with Zig platform fees from July 2023; China taxi revenue continues recovering after restrictions eased.

• Other segments are expected to remain stable, with improved activity and earnings partly offset by inflation; interest rates and borrowings will be monitored.