Falling bus profits for Stagecoach
Stagecoach’s operating profit in its bus business declined in the six months to 26 October 2019. Adjusted total operating profit from continuing operations was £79.6m (H1 2019 restated: £87.5m). According to the company, the decrease is due to various factors including 2018’s exceptionally good summer weather contrasting with this summer’s poorer weather. It also mentioned last year’s figures were boosted by operating bus services related to rail re-signalling work in the Derby area, which was not repeated for the latest set of results.
Operating profit in its regional bus operations fell 12.4% to £57.1m (H1 2019: £65.2m). The company said its megabus business in the UK has continued to deliver revenue growth, with its focus on marketing enhancements and customer initiatives.
As anticipated, operating profit during the period in its London operations decreased 16.4% to £5.1m (H1 2019: £6.1m).