MENU

Eight Ways That ComfortDelGro Corporation Makes Its Money

ComfortDelGro Corporation Ltd (SGX: C52) is a Singapore-listed company that is also part of the STI index. It has business interests in transportation.

ComfortDelGro also has a presence many countries. These include Singapore, China, the UK, Australia, Malaysia, Ireland and Vietnam.

At its current price of S$2.81, ComfortDelGro has a market capitalisation of S$6.06 billion.

So how does it make its money.

Bus Services are the biggest contributors to the company’s revenue, making up approximately 50% of sales.

Under this segment, ComfortDelGro runs bus services in four countries. They are Singapore, China, the UK and Australia.

In Singapore it owns 75% of SBS Transit Ltd (SGX: S61). In the UK it operates under the Metroline Limited, which is the second-largest public bus operator. Its Australia operations are carried out under Westbus Group, which is the largest bus operator.

The next biggest revenue contributor is Taxi Services. ComfortDelGro has operations in five countries, the four that have been mentioned for bus services plus Vietnam.

In Singapore it operates under the Citycabs banner, in Vietnam under Vinataxi, while in China it operates through various joint ventures. In Australia it operates under Swan Taxi’s which is the largest taxi operator in Perth. And lastly in UK it runs Computer Cab.

The third biggest revenue contributor is Automotive Engineering Services.

This operation is Singapore centric in which it is the largest vehicle maintenance and repair workshop. The unit handles repair and maintenance for its taxi fleet, 3,000 private cars and 4,500 commercial vehicles.

The other five ways are listed in decreasing order of revenue: Rail Services, Inspection & Testing services, Driving Centre, Car Rental & leasing and Bus Stations.

ComfortDelGro run rail services in Singapore through its partial ownership of SBS Transit. As for Inspection and Testing Services, it runs Vehicle inspection in Singapore through Vicom Limited (SGX: V01). It also offers this service in China and Malaysia.

The driving centre business is Singapore dominated, in which in enrols learner drivers who want to get a driving. The Car Rental & Leasing segment of ComfortDelGro is mostly self-explanatory.

By looking at the different ways that ComfortDelGro derives its revenue, it gives investors a better understanding of the company. It also allows investors to get a clearer picture of its future growth prospects.

The Motley Fool's purpose is to help the world invest, better. Click here now for your FREE subscription to Take Stock - Singapore, The Motley Fool's free investing newsletter. Written by David Kuo, Take Stock - Singapore tells you exactly what's happening in today's markets, and shows how you can GROW your wealth in the years ahead.

Like us on Facebook to keep up to date with our latest news and articles. The Motley Fool's purpose is to help the world invest, better. 

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Esjay does not owns shares in ComfortDelGro, Vicom and SBS Transit.