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 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.
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.
Cheng Siak Kian, chief executive officer of CDG, said: “We remain vigilant as we navigate the evolving macro-economic challenges and continue this momentum of building scale and new capabilities for the long term.”
The outlook for the public-transport business appears mixed for CDG, with the operator successful in renewing only one of two bus packages in Singapore; rail revenues are expected to be stable.
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Driver shortages continue to plague the Australian market. 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.
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.
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.
Shares of CDG closed unchanged at S$1.40 on Wednesday.
