Megabus operation in US shines as Stagecoach makes steady progress
VIRGIN Rail owner Stagecoach has seen a revenue hike across the majority of its rail and bus businesses in the three month period to July 21.
In an interim management statement issued this morning, the firm said its overall profitability remained satisfactory.
Like-for-like revenue growth of 4.5% was seen its UK bus regional operations and UK Rail was up by 6.5%.
Its North American operation – which includes Megabus.com – saw revenues increase by 5.7% while Virgin Rail was up by 5.8%.
The sole under-performer in the transport group’s portfolio was its London bus operation which saw a slight decline in revenue terms (0.6%).
Stagecoach said its regional bus operations performed strongly during the period. Passenger volumes have increased year-on-year, which it believes is partly attributable to better weather.
The firm said the financial performance of our rail businesses is in line with our expectations and said that is continues to discuss with the Department for Transport (DfT) the planned extensions to our South Western Trains and East Midlands Trains franchises.
“We also continue to progress our bids for the Thameslink and Docklands Light Railway franchises, and the announcements of the winning bidders for those franchises are expected in Spring 2014,” it said.
Megabus.com in North America is the fastest-growing part of the group, increasing revenue by 21.8% in the three month period.
“This reflects further growth in existing services, as well as contributions from our Texas and California networks launched during 2012/13,” Stagecoach said.
“Overall, the North American business remains on track to deliver a significant step up in its operating profit in 2013/14 when compared to 2012/13.”
