Comfort Delgro

[CityFarmer]

ComfortDelGro profit up 6% despite pressues on bus business

INGAPORE — ComfortDelGro’s net profit increased 6 per cent in the second quarter even though its bus services in Singapore reported an operating loss, hit by lower fares and higher costs.

The transport company made a net profit of S$68.9 million in the quarter ended 30 June, with revenue increasing 2.7 per cent to S$908.4 million.

In Singapore, revenue from scheduled bus services under SBS Transit increased by 7 per cent to S$159.6 million as the average daily ridership grew by 3 per cent.

But despite the continued growth in demand for bus services, the business saw an operating loss of S$3 million as a result of rising operating expenses and lower average fares.

http://www.todayonline.com/business/comf...s-business

[ForeverAlone]

any view on this blue chip?
currently PE 15 and a yield of 3%, does it seem fairly priced?
What i like is its strong balance sheet, close to net cash position and small growth rate.

over the last 10 years since listing in 2003 they have managed to consistently grow EPS and div payout

[Andrewgoh]

http://frmcommittee2012.files.wordpress....-5-nov.pdf

Fare Review report

[AlphaQuant]

new formula covers all bases then - CPI, Labor, Fuel.

Looks like the PTOs are going to be good inflation hedges.

[ForeverAlone]

thanks for the info man~ ya cool~

[ForeverAlone]

sorry but overall is this good or bad for players like comfort delgro and smrt?

[felixleong]

Overall looks good for PTOs, i expect a rally tomorrow
^^

[ForeverAlone]

"Under today’s fare review framework, when the PTC does not grant
the full fare adjustment quantum or rejects it entirely, the remaining
fare adjustment quantum that is not granted is forfeited perpetually.
By forfeiting the entire amount or part of it, the PTOs would not be
compensated for their cost increases, as fare increases would be lower
than cost increases. As a result, the financial viability of the public
transport industry would deteriorate and the industry would eventually
become unsustainable. The Committee feels that the longer term
interests of commuters should also be safeguarded and assured as well,
through ensuring a financially viable public transport industry"


"Therefore,on balance
, the Committee is of the view that the PTOs
should be fully compensated for cost increases over the long term,
given that productivity extraction is already incorporated in the fare
formula."

[ForeverAlone]

Overall looks good for PTOs, i expect a rally tomorrow
^^

CD up to 1.93 ^^ cheers

[ForeverAlone]

http://infopub.sgx.com/FileOpen/CDG_3Q13...eID=264039

http://infopub.sgx.com/FileOpen/CDG_3Q13...eID=264041

http://infopub.sgx.com/FileOpen/CDG_3Q13...eID=264040

COMFORTDELGRO’S RESULTS
FOR THIRD QUARTER ENDED 30 SEPTEMBER 2013
•
Revenue increased by 8.6% to $978.4 million.
o
Actual revenue increased by $89.3 million but this
was partially eroded
by the negative effect of the weaker Australian Dol
lar and Sterling
Pound.
o
The newly-acquired Metroline West in the United Kin
gdom contributed
maiden revenue of $54.2 million during the quarter.
•
Operating profit increased by 4.8% to $122.4 millio
n.
o
Despite an increase in ridership, the core schedule
d bus operations
under SBS Transit in Singapore continued to incur l
osses. For the
quarter just ended, it posted a loss of $0.9 millio
n due to a drop in
average fare.
o
Operating profit from overseas operations accounted
for 51.1% of total
Group operating profit.
•
Net profit increased by 5.4% to $76.7 million.