SINGAPORE: Singaporean transportation operator ComfortDelGro posted a net profit of 85.2 million Singapore dollars ($63.2 million) for its second quarter to the end of June, a 5.3% rise from the comparable quarter in 2015, helped by lower operating costs.
Revenue fell by 1.4% to S$1.02 billion year-on-year due to a negative S$18 million foreign currency translation effect. Of this, the British pound accounted for S$13 million. The pound has weakened against the Singapore dollar following a U.K. vote in June to leave the European Union.
However, operating costs fell by 1.8% due to lower fuel and electricity costs and a S$15.9 million fall in costs in Singapore dollar terms caused by the decline in the value of foreign currencies, including the pound and the Australian dollar.
ComfortDelGro expects revenue from its U.K. bus business to drop further as the pound continues to weaken. The company operates London’s second-largest public bus company, and has footholds in Liverpool, Glasgow and Ireland.
Bus revenue fell by 4.6% to S$513.5 million as an absence of special charter events in Singapore resulted in lower demand for its buses. The company said on Friday that bus revenue in Singapore “is expected to be maintained.”
Rail was the best performing sector for the quarter. Rail revenue increased by 24.5% to S$65.1 million as more passengers rode the company’s trains. Taxi revenue grew by 2.8% to S$340.2 million, despite negative foreign currency translation effects.
Kua Hong Pak, group CEO and managing director of ComfortDelGro, said the company is “seeking suitable investment opportunities,” although uncertainties continue to persist in the countries it operates in.
