ComfortDelGro's net profit up 12.4% to $82.5m in Q1

Thanks to lower finance costs and taxation.

ComfortDelGro reported strong bottom line despite the slump in its revenue for the quarter ending in March.

For the said quarter, group revenue was down 2.4% to $972m, mainly attributable to the negative foreign currency translation of $24.8m due to the weaker Sterling Pound and Chinese Renminbi. Meanwhile, operating profit for the first quarter decreased by $8.9m or 8.1% to $100.5m.

Despite this, net profit grew by 12.4% to $82.5m, boosted by lower operating and finance costs.

Operating costs fell by $14.7m or 1.7% to $871.5m. Whilst actual operating costs increased by $8.4m, this was mitigated by a favourable foreign currency translation effect of $23.1m. Lower finance costs and taxation also helped boost the bottom line.

Net income from investments increased by $10.5m to $13.7m due to $11.1m in special dividends from Cabcharge Australia, offset by a decrease in interest income of $0.6m.

“The global environment has become more challenging as economic growth remains sluggish and competition intensifies. The actual performance of our Public Transport Services Business improved during the quarter although this was somewhat impacted by the negative foreign currency translation," ComfortDelGro CEO Yang Ban Seng said.

More From Singapore Business Review

• First Apple Store in Southeast Asia to open in Singapore
  

• Finty rewards customers for online financial purchases
  

• Daily Briefing: SIA to land into a net-debt as soon as 2018; 130 units at Artra sold on first day