- ComfortDelGro's 9M24 revenue was above expectation at 80% FY24e due to CMAC acquisitions. PATMI was within our expectations at 74%. 3Q24 PATMI rose 15% y-o-y.
- Profitability in Australia has suffered due to bus driver shortages collapsing margins. Excluding CMAC and A2B acquisition, total EBIT growth was 8% y-o-y, led by higher margins from repricing of UK bus operations. The largest drag was Australia, where EBIT collapsed 51% y-o-y after removing A2B due to bus driver shortages.
- - Read this at SGinvestors.io -
- Earnings growth drivers are UK repricing and recent acquisitions. Unclear are the potential synergies from the acquisitions that have totalled around S$750mil this year.
The Positive
Spike in UK bus earnings.
- - Read this at SGinvestors.io -
- From the group EBIT growth (ex-acquisition) of S$6mil in 3Q24, the UK contributed S$9mil but pulled down S$6mil from weakness in Australia. Singapore added S$3mil.
The Negative
Australian earnings are still sliding.
- Read more at SGinvestors.io.
