ComfortDelGro sees competition evening out even as Q1 net profit falls 20%
A ComfortDelgro taxi passes Uber and Grab offices in Singapore March 26, 2018. (Photo: REUTERS/Edgar Su)
SINGAPORE: ComfortDelGro's net profit fell nearly 20 per cent in the first quarter as its taxi business continued to take a beating from private-hire players, but the company said it expects revenue in the division to stabilise with the rationalisation of the competition landscape in Singapore.Net profit for the quarter ended March fell 19.6 per cent to S$66.3 million, due in part also to the non-recurrence of special dividends from its subsidiary Cabcharge Australia, the company said in a statement on Friday (May 11) after market close.
acquire Uber's Southeast Asia operations.While the deal is pending regulatory approval in Singapore, Uber has already shut down its app and exited the market.
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The public transport services business posted an increase in revenue, while the driving centre business remained the same.The company has stepped up the pace of mergers and acquisitions in recent months, with a total spend of S$123 million so far in 2018 - compared with S$166 million in the preceding five years.In April, the company announced that it would acquire Australian bus company Tullamarine Bus Lines for A$32.2 million (S$32.7 million), as well as another S$30.2 million to expand into Australia's patient transportation business.That same month, it also announced the acquisition of the private bus chartering assets of Singapore's AZ Bus for S$10.25 million.“The first quarter of 2018 has been very eventful for us. We have inked several acquisitions as we step up our pace of mergers and acquisitions," said Mr Yang."The group will continue to actively seek acquisition opportunities to scale up our existing operations, and in adjacent businesses that will leverage on our strength," he added.