26th Feb 2014 09:02
LONDON (Alliance News) - Bus and rail operator Stagecoach Group PLC Wednesday said its adjusted earnings per share expectations for the current financial year remain unchanged, as its overall profitability has remained satisfactory in recent months despite the severe weather that has hit its UK and US markets.
In a management statement, it said like-for-like revenues were up 4.6% in its UK regional bus operations in the 40 weeks to February 2, up 3.1% in its London bus operations, 3.9% in UK rail, 5.4% in North America, and up 5.7% at its Virgin Rail joint venture.
It said the UK regional bus operation has been buoyed by 1.2% like-for-like passenger volume growth, while its London bus operations have benefited from new contracts won last year.
Its UK South West trains franchise was hard hit by the extreme weather that has hit the UK all winter, but it said it expects the impact to be offset by positive trading across the rail unit as a whole.
Stagecoach has bid with Virgin Group for the East Coast intercity franchise. It said it has revised its UK rail operating profit expectations for the year to allow for up to GBP5 million of bid costs for the franchise.
The company has also bid for the Thameslink and Docklands Light Railway franchises, and is in talks with the UK government about extending its South West Trains and East Midlands franchises.
Trading in North America also remained satisfactory, despite the recent harsh winter weather that has gripped the region, it said. Its Megabus.com operation in the region is its fastest growing business, with revenues up 20.3% in the nine months to end-January.
"This reflects further growth in existing services, as well as contribution from our Texas and California networks launched during 2012/13. We recently announced the expansion of our megabus.com network to cover new locations in North and South Carolina, and have plans to add more services during 2014," it said.
Stagecoach shares were up 1.3% at 386.9 pence early Wednesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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