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Cabcharge reduces 1H loss 95pc to $5.1m

Christian Edwards  |  27 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Cabcharge (ASX: CAB) has reduced its first-half loss, thanks to its expanded taxi fleet helping lift revenue in the face of growing competition from ride-sharing services such as Uber.

The taxi and payments system operator has reduced its net loss for the six months to December 31 by 95 per cent to $5.1 million, a significant improvement on the $106.8 million loss in the prior corresponding period.

A hefty non-cash impairment charge of $12.3 million on taxi licence plates also hit the company's bottom line.

On a continuing operations basis, Cabcharge has made a $4.7 million loss compared to the previous first half's $2.7 million profit.

And, revenue has grown 13.8 per cent to $90 million thanks to organic growth and the July 2017 acquisition of Yellow Cabs Queensland.

Yellow Cabs Queensland alone generated $15.5 million in revenue after adding 1,352 in the first-half to a total of 8,729 cars, and the company says it plans to continue expanding its fleet.

However, in Sydney, Cabcharge's largest market, its fleet had shrunk by 178 cars.

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Chief executive Andrew Skelton said that overall Cabcharge had returned to growth in its key measurement of fares processed, which totalled $515 million in the six months.

"With recent strong gains in payment turnover and the expansion of our fleet, the company is positioned for growth," Mr Skelton said in a statement on Tuesday.

The company said it had also invested in technology and in marketing to lift brand awareness for its 13CABS app and brand.

After seeing its revenue decline in past years, due to new competitors such as Uber, Mr Skelton said Cabcharge was now more tightly focused on customers in the personal transport industry.

"We have a business that is profitable, is generating cash, carries no debt, has an EBITDA margin of 20 per cent and is now delivering growth in its key metrics of payment turnover and fleet affiliation," he said.

Cabcharge declared a four cent, fully franked, interim dividend, down from 10 cents last year.

Its shares were 0.5 cents, or 0.28 per cent, higher at $1.82 at 1134 AEDT.

CABCHARGE REDUCES LOSS

* Net loss of $5.1m vs $106.8m loss

* Revenue up 13.8pc to $90m

* Interim dividend of four cents, fully franked, down from 10 cents

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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