Cabcharge signals revenue rise despite Uber pressure
CABCHARGE chief Andrew Skelton says he expects the group to achieve a double-digit revenue increase this financial year despite the growth of services such as Uber.
Fare turnover had increased in every state and territory other than Queensland and Western Australia so far this financial year, Mr Skelton told investors at the Cabcharge annual meeting yesterday.
After 24 months of declining turnover in Queensland, there was a 3 per cent rise in October, he said.
“Our industry is being challenged in a number of ways, most significantly by regulation and Uber,” Mr Skelton said.
“We are fortunate to have a leading position in the taxi industry. We are fortunate … that the demand for paid personal transport is growing.”
Cabcharge’s revenue had declined in the past two financial years in the face of growing competition from Uber and other digital chauffeur services, and rival transport payments processors.
It made a $91 million loss in the year to June, primarily because of losses on the sale of its stakes in a bus business and a British taxi account and booking service. However, it also expanded its taxi network, buying Queensland’s Yellow Cabs, and launched its own payment terminals.
The Yellow Cabs deal has added 1200 cars to its fleet, and Cabcharge has added 125 cars in Victoria and South Australia since the end of June.
Another 320 cars were to be added in those markets, Mr Skelton told shareholders.
“We have a strategy that is working, fewer distractions, a deeper spread of activities across the value chain, no debt, and we are continuing to make the investments in technology and marketing that will grow our revenue in the years ahead,” he said.
The company also revealed yesterday that it would take a $6 million hit to its full-year profit due to extra investment in technology and marketing.
There would be a further $3 million impact from new restrictions on service fees in Queensland, Mr Skelton said.