In a trading update to the Stock Exchange, Stagecoach says that it has seen revenue falls in UK bus.
Although its overall results for the financial year to 28 April remain as expected, it says like-for-like UK revenue growth for its London bus operation was -0.1%, and Regional was -0.4%.
Its rail and USA business showed growth.
For UK Bus Regional Stagecoach has implemented targeted mileage reductions and selective fare rises, as its make changes to services that it “considers will support the long-term success of the business.”
It says the effects of these actions on its core local bus businesses has been “broadly as expected”, with revenue-per-mile up 2.8% year-on-year and fare rises contributing to increased yield per journey.
In addition, costs “remain well controlled.”
It has also seen “lower than expected demand in recent months” for its inter-city coach services. Despite these factors, it expects the UK Bus Division’s operating profit for the year to be unchanged.
