Stagecoach Group has published an interim management statement for the 40 weeks ended February 2.
Like-for-like revenue growth for the financial year to date in each of the Group’s main businesses was:
- 4.6% for UK Bus (regional operations);
- 3.1% for UK Bus in London;
- 3.9% for UK rail;
- 5.4% for North America, including Megabus.com; and
- 5.7% for Virgin Rail Group. Stagecoach’s UK Bus (regional operations) division saw passenger volumes growth of 1.2%.
In London, the operator benefitted from new contracts won last year, but since October 1, 2013, the business stopped receiving the Bus Service Operators’ Grant. This was offset by a corresponding uplift in the contract prices paid to the business by Transport for London. Excluding this uplift, revenue for the 40 weeks increased by 0.5%, reversing a decline in revenue seen in the first half of the financial year.
Megabus.com in North America is the fastest-growing part of the Group, increasing revenue by 20.3% in the nine months ended January 31, 2014. This reflects further growth in existing services, as well as contribution from the new Texas and California networks launched during 2012/13. Stagecoach recently announced the expansion of the Megabus network to cover new locations in North and South Carolina, and there are also plans to add additional services over the coming months.