Cabcharge writes down taxi licences by $7.9M

Company News

by David Chau

Cabcharge (ASX:CAB) has confirmed that the sale of its 49% equity interest in the CDCBus joint venture is expected complete in late February 2017.

The company is also anticipating proceeds of $184 million from the sale of this asset to Singapore transport giant ComfortDelGro.

Cabcharge will also recognise $7.9 million in impairment charges relating to its portfolio of taxi licence plates.

The company says this is due to “continuing uncertainty on future income level” resulting from “regulatory reforms” from certain states. These states include include Victoria, NSW, Western Australia and Queensland – which have legalised ride-sharing services like Uber.

Cabcharge posted a net profit of $25.6 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.