ComfortDelGro (CDG) has reported patmi of $210.5 million for the FY2024 ended Dec 31, 2024, 16.6% higher y-o-y. Earnings per share (EPS) for the year rose to 9.72 cents from 8.33 cents previously.

Revenue for the year grew by 15.4% y-o-y to $4.48 billion. Following the acquisitions made in FY2024, the group’s overseas revenue contribution increased to 49.1% from 42.6% in FY2023.

CDG’s FY2024 operating profit also by 18.7% y-o-y to $322.9 million thanks to higher operating profit from its public transportation segment and the taxi and private hire segment. The group’s public transport segment saw operating profit increase by 10.3% y-o-y mainly from the renewal of bus contracts at improved margins in the UK.

The taxi and private hire segment also saw a 24.4% y-o-y increase in operating profit thanks to higher ride-hailing commission rates and fares in Singapore. Accretive contributions from CDG’s newly-acquired businesses in Australia and the UK. CDG acquired CMAC Group, a UK-based ground transport management and accommodation network specialist, in February 2024. The group also completed the acquisition of A2B Australia, an Australian taxi network and major technology and payment solutions provider, in April 2024. In November 2024, CDG completed the acquisition of Addison Lee, London’s iconic premium private hire, courier and black taxi provider.

As a result, CDG’s overseas profit contribution increased to 34.9% in FY2024 from 26% in FY2023.

In FY2024, CDG expanded into new regions and markets in its public transportation segment. This includes the four new bus franchises won in Greater Manchester by its UK subsidiary Metroline, the 11-year contract secured with Go-Ahead Group to operate the Stockholm Metro in Sweden starting in late 2025, as well as a mix of new wins and renewals secured for CDG’s Victoria Bus portfolio in Australia.

CDG has proposed a final dividend of 4.25 cents per share, bringing its total dividend for FY2024 to 7.77 cents. The total dividend represents a payout ratio on patmi of 80%.

“Our strategic focus on strengthening our core businesses both in Singapore and overseas has enabled us to deliver strong full-year results,” says Cheng Siak Kian, managing director and group CEO of CDG. “As we continue to develop a more diversified revenue portfolio and balanced geographical contributions of earnings, we are building a stronger and more resilient ComfortDelGro . We will leverage group-wide capabilities to build on the strong momentum and accelerate future growth.”

Mark Greaves, chairman of CDG, added that the group is “pleased” with the progress made in implementing its strategy as well as the “continued improvements in operational performance”.

Looking ahead, the group expects competition within the Singapore taxi and private hire space to intensify with new entrants. It sees its China taxi revenues likely to be “subdued” due to the expected economic slowdown in the country.

Revenues from its rail operations are tipped to increase “marginally” with higher ridership and fare increases granted by the Public Transport Council from December 2024. However, the group anticipates lower bus revenues after the expiry of its Jurong West package on Aug 31, 2024. Its Seletar bus package was retained at current market margins for another five years from March 2025.

In the UK, CDG expects its London public bus contract renewals to continue at improved margins. In Australia, the group sees better days ahead with bus driver shortages gradually easing.

Its newly-acquired companies, A2B and Addison Lee will contribute in full from FY2025 onwards.

In other segments, CDG believes revenues from its inspection & testing services arm will likely increase with the full-scale installation of the on-board units for the Electronic Road Pricing 2.0.

The remaining business segments are expected to remain stable.

That said, with the recent geopolitical and trade tensions, the group will continue to “monitor foreign exchange and interest rates closely and take appropriate measure”. It adds that it “remains cautiously confident that its strategy execution will continue on-track, backed up by a strong balance sheet, well managed long-term debt and a strong focus on operational excellence.”

As at Dec 31, 2024, CDG’s cash and cash equivalents stood at $892.4 million.

Shares in CDG closed 2 cents higher or 1.44% up at $1.41 on Feb 27.