I thought it held up well yesterday and results were probably a...

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grandcaruso

2,317 Posts.

22/08/15

07:53

Post #: 15855045
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Originally posted by Mongrel ↑

Its funny how the doom and gloom generated by some in this forum over this company is just pissing in the wind. Always a good reality check when the reports are issued.

Revenue down 4.7% yoy - not bad for a revenue steam slashed by (theoretically) 10% due to imposed ceilings on CC charges and the spectre of Uber taking out the traditional taxi model. NPAT down 16.6% is more driven by investments rather than Uber/charges limit issues, although the latter have obviously impacted the bottom line.

A solid fleet increase with associated fares payments in excess of 7.9% shows the sector is not affected greatly by Uber, as many in this forum have opined.

The slide in corporate Cabcharge accounts has effectively been halted and leakage of services to (presumably) Uber reversed in WA and NSW. Vic seems to have flatlined in spite of that state having the largest increase in the fleet.

In any case, an EBITDA margin of 35.1% is healthy, as is its net debt of 26% and decreasing.

Of course, the big question is what will happen in the future as government deregulation bites. CAB have $70M tied up in taxi plates which is in danger of having to be severely written down, or totally written off. Not actually a biggy, but it will have an emotionally driven impact on its SP.

On a negative note, I see in their preso they are still putting the customer last: talking about everything else first and putting in "soft" customer initiatives almost as an afterthought. I'm sure CAB believe all their other business improvements ultimately lead to customer satisfaction, but addressing it directly is what the public wants to see. Cabcharge control 7,259 cars across three states. That's a great base to challenge the concept of spew-smelling, rude, late, overpriced taxis.

An SP below $3? Not sustainably, imo.

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I thought it held up well yesterday and results were probably a lot better that some anticipated. But i think the market won't treat it that favourably for the time being. Hard to buy something in this market when questions remain.

CAB Price at posting: $3.04 Sentiment: None Disclosure: Not Held
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Add CAB (ASX) to my watchlist

I thought it held up well yesterday and results were probably a...

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