The Motley Fool

A Quick Overview of How ComfortDelGro Makes Its Money

ComfortDelGro Corporation Limited (SGX: C52) is a transport company with operations mainly in Singapore, Australia, the UK, and China. It is also the majority owner of vehicle and non-vehicle testing and inspection outfit VICOM Limited (SGX: V01) and bus and rail services operator SBS Transit Ltd  (SGX: S61).

In this article, we will try to understand one aspect of the company – how does it make its money? This will help investors get a quick overview of the company’s various sources of income.

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Here, I’ll look at it from two perspectives – by business and by geography.

Business

Source: ComgortDelGro’s 2018 Annual Report

From the above, we can see that the company derived its income from seven major segments.

Overall, the Public Transport Services and Taxi segments accounted for the lion’s share of ComfortDelGro’s revenue – 90.4%. The remaining 9.6% of its income is derived from various services to support the transport and automotive industry.

In other words, the company is quite concentrated in terms of revenue despite operating under multiple business segments.

Geography

Source: ComgortDelGro’s 2018 Annual Report

Geography-wise, we can see that the company’s income is derived from four main regions.

Similarly, the top two regions accounted for the bulk of its income – 82.3%. Still, it’s good to note that about 41% of its income is from overseas and not entirely from Singapore.

Key takeaway

In sum, we can see that ComfortDelGro operates in multiple regions and business segments. Yet, its income is still highly concentrated in the top two segments, across two regions.

Thus, investors should be comfortable with such a concentration when investing in the transport conglomerate.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has recommended shares of SBS Transit Ltd and VICOM Limited.