ComfortDelGro Records Positive Growth Amidst Growing Costs
Public transport operator, ComfortDelGro (CDG) reported a 6.5 percent increase in revenue to a quarterly record of $855.4 million underpinned by broad based growth across its operating arms. Actual revenue increased by $50.7 million, further aided by positive foreign currency translation effect of $1.7 million due to the stronger Australian dollar and Chinese Yuan. CDG’s taxi operating arm led revenue growth by accounting for about 43 percent of the increase in revenue. Operating expenses also ticked upwards as CDG increased its Australian headcount and also due to the increase in foreign workers’ levy in Singapore. Despite the 6.4 percent increase in operational expenses, operating profit still managed to grow 7.4 percent while earnings grew 6.8 percent to $53.5 million. Group chief executive officer, Kua Hong Pek remarked that CDG’s broad based growth amidst a backdrop of global uncertainty and weakness was “encouraging”.
Significance: CDG has performed comparatively well as compared to its domestic peer, SMRT. This undoubtedly has to do with its interests overseas that have contributed 40.7 percent of total revenue.
Global Premium Hotels Reports Stellar Performance Post-Listing
Global Premium Hotels (GPH) released its 1Q12 earnings report card that featured a 28.8 percent increase in revenue to $14.9 million and a 46.9 percent increase to $6.4 million in earnings. GPH attributed the jump in figures to three new hotels which were well-received since the commencements of operations. Apart from new contributions, GPH’s revenue per available room (RevPAR) also grew 20.3 percent while its average occupancy rate also increased to 91.7 percent from 76 percent a year ago. Lim Chee Chong, chief executive of GPH remarked that the improvement in its occupancy rate and RevPar “further attests to our established track record in hotel operation”. GPH also updated that with the proceeds from its recent IPO, it intends to seek suitable sites for hotel development and aim to add another 200 to 300 rooms to its economy-or mid-tier hotels within 1 to 2 years after any successful acquisition.
Significance: According to the Singapore Tourism Board, visitor arrivals for 2012 could hit around 13.5 million to 14.5 million. This strong growth in visitor arrivals bodes well for the demand of hotel rooms and GPH looks primed to take advantage of this opportunity.
Cordlife Posts Profit Slide Despite Revenue Gains
Cord blood and tissue banking service provider, Cordlife said that it had achieved a 13.2 percent increase in revenue to $6.9 million for 3Q12. Cordlife attributed this increase to an increase in the provision of cord blood banking services driven by a rise in the number of client deliveries and new cord tissue banking services launched in March 2011 in Hong Kong. Gross margins remained relatively high at 69.3 percent, despite a slight dip from 72.6 percent due to an increase of costs brought about by tests for regulatory and accreditation purposes. However, due to one-off IPO expenses and an increase in selling and marketing expenses incurred for client acquisitions, earnings fell 57.1 percent. Jeremy Yee, chief executive office said that the increase in revenue was testament of the success of its marketing and promotional strategy. Yee went on to say that the strategy had also helped to raise awareness of the benefits of cord blood banking.
Significance: While the worsening economies in the Eurozone could present difficulties on the global stage. Cordlife feels that its two key markets in Singapore and Hong Kong will remain promising as it hopes to penetrate deeper into both largely untapped markets.