This year, the revenue performance of PT Blue Bird Tbk (BIRD) will decline due to the decrease in taxi fares, as fuel prices were decreased by the government, and because of the competition with similar issuers and online-based transportation. The management said that this year, revenue will grow by only 1% compared to last year.
Today, the flag fall of Blue Bird taxis dropped from Rp 7,500 to Rp 6,500, and the rate per kilometer was adjusted to Rp 3,500, down 12.5% from the previous Rp 4,000 per km. The waiting time rate was also lowered 12.5% from the previous Rp48 thousand per hour to Rp42 thousand per hour.
The increased rate of Rp4,000 from Rp3,600 per km last year is one of the main factors that contributed to Blue Bird’s revenue growth rate of 15% to Rp 5.47 trillion. This growth rate, however, is lower than what the company has targeted to achieve at the beginning of the year which is 17%.
Towards the end of the first quarter of 2016, Blue Bird’s overall revenue was 0.7% lower compared to the first quarter of last year at Rp 1.27 trillion. Revenue from the taxi segment was the largest contributor that fell 3.38% to Rp 1.08 trillion. The decline started before the enactment of the new taxi fare for this year, on April 16, 2016.
Since the beginning of the year, Blue Bird stock price trends also suffered a decline of 43% to Rp 4,060 at the closing of June 22, 2016. (*)
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