Stagecoach trading update
Stagecoach Group has reported trading consistent with its expectations and there is no change to the adjusted earnings per share that it is anticipating for the year ending 30 April 2015. Like-for-like revenue growth for the 48 weeks ended 29 March 2015 in its regional UK bus operations was 2.4%. The same figure for its London bus operations was 8.1%.
Its regional UK Bus division has experienced ‘modest’ year-to-date growth in passenger journeys. Its forecast reduction in its fuel costs has enabled it to keep fare increases for the year ahead to a minimum, consistent with its long term objective to grow passenger volumes through a value fares strategy and notwithstanding increases to staff and other costs. In mainland Europe, it has recently commenced domestic megabus.com services within Germany. It expects operating losses in this business to increase from around £5m in 2014/15 to around £10m in 2015/16. This is based on its previous experience of megabus.com start-up operations.