ComfortDelGro Corporation (C52) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 13.7% to $2,117.5m and PATMI increased 21.4% to $95.3m; earnings improved for five consecutive quarters year on year.

• Overseas revenue contribution rose to 46.3% from 41.8%, supported by acquisitions and improved UK bus contract margins.

Financial highlights

• Operating profit was $140.5m, up 19.9%; operating profit excluding non-recurring items was $137.7m versus $115.4m.

• Profit before tax rose to $143.8m from $123.7m; profit after tax was $116.1m versus $100.0m.

• Revenue growth included $118.1m from existing businesses, $128.5m from acquisitions and $8.6m from favourable FX translation; costs rose 13.3% to $1,977.0m.

• Finance costs increased 73.1% to $16.1m, mainly due to higher borrowings; investment income rose 28.9% to $19.2m.

Outlook and guidance

• Singapore rail revenue is expected to remain stable; bus revenue is expected to decline from September 2024 after only one of two packages re-tendered in 2023 was renewed.

• A2B and CMAC are expected to contribute for a full half-year in 2H2024; CMAC’s H1 contribution coincided with a typically low travel season.

• London public bus renewals are expected to continue at improved margins; four Greater Manchester franchises start in January 2025 for at least five years.

• Singapore taxi and private-hire revenue is expected to remain relatively stable amid competition; China taxi recovery is gradual and moderated by economic weakness.

• Remaining segments are expected to remain stable; outlook is cautiously confident, supported by operational focus and the balance sheet.