ComfortDelgro *Official* (SGX:C52)

Jupiter2017

Senior Member
Joined
Sep 2, 2017
Messages
1,479
Reaction score
0
http://www.businesstimes.com.sg/com...-unit-acquires-uk-transport-operator-for-£13m
ComfortDelGro's unit acquires UK transport operator for £13m
Wed, Feb 07, 2018 - 6:35 PM Stephanie Luo stephluo@sph.com.sg

COMFORTDELGRO Corporation is expanding its footprint in the United Kingdom through a new acquisition of a bus and coach operator in South Wales.
On Wednesday, the transport company announced that its wholly-owned subsidiary, Braddell Limited, is acquiring all the shares of New Adventure Travel (NAT Group).
The purchase consideration is about £13.4 million (S$25 million), which translates into a valuation of 5.5 times earnings before interest, taxes, depreciation and amortisation of NAT Group, ComfortDelGro said.
The acquisition will be financed using internal funds.
ComfortDelGro currently operates around 1,700 vehicles in London through another wholly-owned subsidiary, Metroline Limited.
ComfortDelGro's managing director and CEO, Yang Ban Seng, said: "With the addition of NAT Group, we are broadening our footprint into Wales and expanding the bus operations outside of London which have always been our strategic intent."
The company said that the proposed acquisition is not expected to have any material impact on the net tangible assets per share and the earnings per share of ComfortDelGro for the current financial year.
ComfortDelGro closed at S$2.03 on Wednesday, down three Singapore cents, or 1.5 per cent.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=C52.SI
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653
n7CpxPI.jpg


flwKaci.jpg
 

kehyi4

Senior Member
Joined
Aug 31, 2010
Messages
1,420
Reaction score
36
http://www.straitstimes.com/singapore/transport/weaker-taxi-business-drags-comfort-delgro-earnings-down

ST: Weaker taxi business drags ComfortDelGro earnings down

SINGAPORE - Transport giant ComfortDelGro Corp posted a 4.9 per cent drop in net earnings to $301.5 million for the year ended Dec 31, 2017 on the back of weaker contributions from all but one of its core businesses.

With its taxi division continuing to take a beating from private-hire players, stiff competition in overseas markets and foreign exchange losses, group revenue shrank by 2.2 per cent to $3.97 billion.

Total operating expenses rose by one per cent to $3.56 billion, with staff cost climbing by 2.6 per cent or $37.2 million because of additional people hired for Downtown Line 3.

The Singapore-listed group posted a 0.4 per cent rise in operating profit for its bus and train division, but all other units reported lower earnings.

Taxi operating profit fell by 19.3 per cent to $135.1 million, automotive engineering (which includes fuel sales to cabbies) slipped 33.1 per cent to $33.9 million, and its inspection unit shrank by 6.3 per cent to $32.6 million on weaker performance in its Setsco testing division.

Even its driving centre business posted a 7.5 per cent dip in operating profit to $9.8 million, largely on the failure of its Chongqing school, which has since closed down.

ComfortDelGro's earnings per share dipped to 13.95 cents, down from 14.72. Its net asset value per share stood at 121.01 cents, up from 114.77.

Its operating margin before interests, taxes and depreciation shrank from 21.1 to 20.6 per cent.

The group posted a net cash outflow of $183.1 million. Its cash and equivalents stood at $596.2 million, down from $779.3 million. After borrowings, it had a net cash position of $273.9 million, down from $434.2 million previously. Its gearing ratio was 10.6 per cent, down marginally from 10.8.

Net capital expenditure fell by 27.4 per cent to $283.6 million, mainly on fewer taxi purchases .

ComfortDelGro group chief executive Yang Ban Seng described 2017 as "very challenging".

"The intense competition from ride-hailing apps has taken a toll on traditional taxi businesses everywhere," he said on Tuesday. "We too have not been spared, particularly in Singapore. But we have taken it in our stride, and continue to strengthen our relationship with our driver partners and find ways to improve their earnings."

Mr Yang said the alliance with Uber - which has yet to be approved by the Competition Commission - should "widen the revenue base for our driver partners".

He said about 5 per cent of the group's taxi fleet is currently unhired. The fleet has shrunk by more than 20 per cent to 13,200 since 2014. He said the group would not be buying any more taxis for the 2018 financial year.

"We expect the operating environment to remain tough," Mr Yang added. "We will actively look for opportunities to grow and expand the business, both in Singapore and overseas."

ComfortDelGro's revenue contribution from overseas was 37.5 per cent last year, with operating profit contribution from markets such as UK, Australia and China at 40.4 per cent. This indicates the group's overseas businesses have become more profitable than those in Singapore.

Directors are recommending a final dividend of 6.05 cents per share - unchanged from the year before.

They expect revenue from buses and trains to rise this year (2018), while its taxi and automotive engineering units are expected to decline further.
 

MuppeJack

Senior Member
Joined
Jan 1, 2013
Messages
837
Reaction score
1
ComfortDelGro owns 74% of SBS to my understanding. No idea whether there will be any impact
 

Rainbow1112

Supremacy Member
Joined
May 6, 2008
Messages
5,338
Reaction score
104
No more cheap rides in the future. right now with Grab/Uber can compare prices before booking and they give plenty of discounts..

Actually Uber selling SEA unit to grab doesn't affect CDG much in fact maybe will be better as right now LCR drivers are unable to drive for grab. With Uber gone drivers can take up cheaper/newer cars and rent out more cars.
 

plexxor

High Supremacy Member
Joined
Aug 9, 2006
Messages
30,457
Reaction score
1,860
Uber gone then the industry will consolidate towards duopoly lor

Sent from The Matrix using GAGT
 

TabascoSauce

Master Member
Joined
May 7, 2017
Messages
2,833
Reaction score
2
I think the eventual state is grab act as matching platform while cdg supply the vehicles.

End of the day, passengers and Drivers will benefit from better matching, but will come at a higher price (rental and grab taking a cut)
 
Last edited:

FrontierX

Supremacy Member
Joined
Dec 27, 2005
Messages
6,714
Reaction score
212
Uber gone then the industry will consolidate towards duopoly lor

Sent from The Matrix using GAGT

What difference does it makes now cdg/grab and in the past cdg/smrt/transcab etc?

Long term customers lose.

Most likely grab after buying Uber will be duopoly with one owning platform and the other owning assets. Once they collaborate the customers will be the ones on losing end as no more competition
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top