27th Apr 2016 06:48
LONDON (Alliance News) - Transport operator Stagecoach Group PLC on Wednesday said like-for-like revenue grew in the first 48 weeks of its financial year in most of its operations, with only its North American arm suffering a decline.
The bus and rail operator said like-for-like sales in its UK regional bus business grew 0.2% in the 48 weeks to April 2, while like-for-like sales in its London bus arm rose 1.1%. The group intends keeping fare increases for the regional business to a minimum in order to try to stimulate better growth, while the London operation has performed in line.
Like-for-like UK rail sales were up 2.5%, while like-for-like sales for its Virgin Rail Group venture were up 4.6%. Stagecoach said the outlook for the UK rail business is weaker than it had been, with slowing revenue growth in recent months.
It said the weakening growth was caused by lower consumer confidence, increased concerns about terror attacks following recent incidents in Europe, lower fuel prices, and slower real earnings growth.
The only decline came for Stagecoach's North American business, where like-for-like revenue declined 3.4%, with weaker sales for its Megabus.com coach business.
Stagecoach said it remains on track to meet its expectations for its full financial year to the end of April.
By Sam Unsted; [email protected]; @SamUAtAlliance
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