TRANSPORT operator (CDG) reported on Wednesday (Aug 14) a 21.4 per cent increase in H1 2024 earnings to S$95.3 million, from S$78.5 million in the year-ago period.
Revenue for the period rose 13.7 per cent to S$2.1 billion from S$1.9 billion in the year prior, driven mainly by new acquisitions and increased contributions from existing businesses.
The UK-based transport-solutions provider CMAC, acquired in February 2024, drove up H1 2024 revenue for CDG’s other private-transport business, sending it up 149.6 per cent to S$173.5 million from S$69.5 million in H1 2023.
The taxi/private-hire vehicle business also recorded higher revenues for the period – 17.8 per cent higher to S$327.5 million in H1 2024 from S$277.9 in H1 2023. Most of that rise was contributed by the newly acquired Australia-based taxi company, A2B. The acquisition bumped up CDG’s overall taxi fleet by around 8,000, to a total of around 29,000.
Revenue from the public-transport business rose 7 per cent to S$1.5 billion in H1 2024, from S$1.4 billion in H1 2023, due to increased revenues from UK bus contracts, improved rail ridership and fare increases, as well as contractual indexation adjustments on public bus contracts.
An interim dividend of S$0.0352 per share was declared by the board, with the closing of books on Aug 22, and payout on Aug 29.
Cheng Siak Kian, chief executive officer of CDG, told The Business Times: “We have said in the last six months that this is a recovering business, and we are in the phase of recovery… that we are seeing in key markets of Singapore, the UK and Australia.”
He noted that with the contributions from A2B and CMAC, the proportion of overseas revenue rose to 46.3 per cent from 41.8 per cent in the year-ago period, in line with CDG’s plans for increased overseas operations.
“(This) is on track with our plans and is a positive sign…that is exactly where we think we can grow the company,” he said.
Looking ahead, more contributions from the overseas segment are expected.
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In the UK, the London Public Bus contract renewals are expected to continue at improved margins.
Four successful public-bus franchises in Greater Manchester will commence in January 2025, a move that will boost CDG’s UK bus fleet by 30 per cent.
Overseas rail joint ventures in Paris and Stockholm begin revenue contributions in 2025, and the company is awaiting the outcome of tenders on Sydney and Melbourne public-rail contracts in Australia.
CMAC made only partial contributions for H1 2024 and will contribute in full for the remaining half of the financial year.
However, CDG noted that driver shortages continue to plague the Australian market.
On the taxi front, the Singapore market is expected to be stable amid intense competition; China revenues are expected to recover gradually. A2B will also record a full contribution for the H2 2024 period.
CDG said that recent market volatility and geopolitical tensions have resulted in heightened uncertainty, but that it was “cautiously confident”.
CDG Chairman Mark Greaves said: “We are well-placed to build further scale and pursue profitable growth, underpinned by strong core operational performance and leading positions in our key markets, which we will continue to build on.”
Shares of CDG closed unchanged at S$1.40 on Wednesday.
