Transport operator Go-Ahead Group PLC(LON:GOG) said revenue from in its train service grew in the four months to October 28 even as passenger journeys fell due to delays, cancellations and strikes.
The company, which operates the London Midland, Southern, Southeastern and Thameslink trains through its 65%-owned Govia subsidiary, said passenger revenue grew 2.5% despite a 1% drop in journeys.
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The Department of Transport (DfT) on Wednesday announced that it plans to split Thameslink, Southern and Great Northern franchises when Govia's contract expires in 2021. Go-Ahead’s contract to run London Midland will end on December 10 and the service will be handed to a firm owned by Dutch giant Abellio.
The government will put the franchise to run the new South Eastern rail out to tender, for which Govia is shortlisted.
“We are confident that we will submit a deliverable and attractive bid for customers, the DfT and shareholders,” Go-Ahead said.
It added that discussions with the DfT regarding a number of contractual changes are ongoing and expects a potential impact on the current year’s rail profits of “plus or minus £5mln”, in line with its previous guidance.
Chief executive David Brown said: "In Rail, trading has been satisfactory in the period. Following the end of Aslef's longstanding dispute with Southern, we are wholly focused on further improving the service for passengers and supporting the completion of the Thameslink Programme.”
READ: Go-Ahead shares travel lower after full-year profits hit by strikes at Southern railways
Earlier this month Aslef’s members agreed to halt strike action after Southern offered them a 28.5% pay increase over five years.
In the group's bus operations, revenues were flat following the loss of some “small” contracts in London. The group said market remains “very competitive” and mileage will continue to be under pressure due to a drop in Transport for London funding.
“However, we maintain strong financial discipline in contract bidding, which is supported by our network of strategically located depots,” it said.
Overall trading in the period was in line with expectations and the group left its guidance for the full year unchanged.