Stagecoach bus revenue stable
Stagecoach’s revenue in its UK Bus (regional operations) Division over the last year was slightly down from the previous 12 months’ figures. In its preliminary results for the year ended 30 April 2016, its revenue was £1,032.8m, down 0.3% from last year’s figure of £1,036.3m. In light of that, the operator has kept recent fare increases to a minimum and is seeking to stimulate demand through those low fare rises, enhanced marketing and the further development and promotion of its digital offering.
These figures exclude the results of the megabus.com inter-city coach business involving mainland Europe, which has now been reported as a separate operating segment. The prior year figures for the UK Bus (regional operations) Division have been restated to exclude megabus Europe. While the operating profit for the year of £137.3m fell short of the target the company set at the start of the financial year, it maintains that the UK Bus (regional operations) Division remains a strong business. Despite this fall, Stagecoach Group’s overall revenue rose to £3,871.1m (2015: £3,204.4m). Although it experienced a decline in its regional operations, Stagecoach’s London bus services earned revenue of £267.1m, up 2.5% from last year’s figure of £260.6m.
Chief Executive, Martin Griffiths, said, ‘These are a solid set of results, with further revenue and underlying profit growth. We are experienced at managing the challenges we face, and the improvements and changes we are making now should ensure that we continue to have a strong portfolio of sustainable and growing businesses for the long term. We are investing for growth and improving the journeys of our customers through new digital tools, smarter ticketing, and the introduction of greener and more comfortable buses and trains. At the same time, we are taking a prudent approach to controlling costs and ensuring our transport networks meet the changing conditions and requirements of our customers.’
‘Our locally managed bus companies have strong partnerships with local authorities, allowing them to deliver tailored transport solutions to help communities get to work, access health and education, and enjoy shopping and leisure. We have been independently assessed as offering the best value fares of any major UK bus operator and our customer satisfaction levels are amongst the best in the sector. We note the result of the recent referendum in favour of the UK leaving the European Union. As with other businesses, we are closely following developments in this area. Although we have little business in Europe outside the UK, we acknowledge the referendum result may lead to continuing economic, consumer and political uncertainty. We remain positive on the long term prospects for public transport and the Group remains in a strong financial position.’