ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

ComfortDelGro announces new group CEO after 14 years

New leader for next stage of growth as competition in transport industry intensifies

SINGAPORE -- ComfortDelGro has announced that its founding managing director and group chief executive, Kua Hong Pak, will be stepping down on April 30 after 14 years at the helm of the Singaporean transport operator.

He will be succeeded by Yang Ban Seng, current CEO of ComfortDelGro Taxis, on May 1. Kua will also remain as a senior adviser to Yang for an interim period.

Kua has been credited with helping expand ComfortDelGro since its inception in 2003. Under his leadership, the company's group revenue has more than doubled, from 2.02 billion Singapore dollars ($1.5 billion) in 2003 to S$4.06 billion for the year ended December 2016.

ComfortDelGro also posted a net profit of S$317.1 million for its full-year results ended December, a 5% rise from the year before, helped by stronger revenue from its taxi business.

Revenue fell by 1.3% to S$4.05 billion year-on-year due to S$124.4 million of costs related to foreign currency translations. Of this, the British pound accounted for S$111.3 million, following its drop against the Singapore dollar after the U.K.'s vote in June to leave the European Union.

However, ComfortDelGro's operating costs over the year fell by 1.7% due to lower fuel and electricity costs and a S$111.9 million drop in costs in Singapore dollar terms caused by the decline in the value of foreign currencies, including the pound and the Australian dollar.

Looking ahead, the company expects headwinds for some of its overseas operations. It said in a press release that revenue from its Guangzhou bus station business in China is expected to be lower as a new high-speed rail network will likely heighten competition.

Revenue from the bus business in the U.K. is expected to decrease with the weaker pound. Overseas operations accounted for 40.5% of the company's operating profit for 2016, down from 45.6% in 2015. The U.K. and Ireland contributed 17.5% to the overall operating profit, down from 20.5% a year ago.

 

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media