Stagecoach Group PLC (LON:SGC) said like-for-like revenue at its UK regional bus and rail operations grew in the financial year-to-date, but it expects revenue at the bus division to moderate during the rest of the year.
UK bus revenue at the regional division rose 3.2% in the sixteen weeks to 18 August, and revenue at UK rail, excluding Virgin Trains East Coast, increased by 2.1%, the company said in a trading update. The Virgin Rail Group’s revenue rose by 5.3%.
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Stagecoach said: “Our UK Bus (regional operations) Division has performed well during the period, which we believe is partly attributable to the favourable summer weather throughout the country.”
That unit also benefitted from additional buses offered to replace train services affected by planned resignalling work at Derby railway station.
Stagecoach added: “Our expectation is that revenue growth will moderate over the remainder of the year, reflecting the one-off benefits in the year to date.”
The transportation services provider said the financial performance of its rail businesses was broadly in line with its expectations, noting it had good profitability at both East Midlands Trains and Virgin Rail Group's West Coast Trains.
Stagecoach said revenue growth at its East Midlands Trains franchise was suppressed because of reduced services for changes to the Thameslink network that started in May, and by the current year resignalling programme at Derby railway station.