Stagecoach revenue grows by £100m in 12 months but fuel costs eat into profits
Stagecoach’s revenue has jumped by nearly £100m in the past 12-months, but profits have taken a hit as fuel costs spike.
The bus operator pocketed nearly £670m in the six months to the end of October, up from around £580m in the same period a year ago.
However, operating and pre-tax profits have taken a hit, as inflation washes over businesses.
Despite rising costs, recent passenger journeys at around 80 per cent of 2019 levels.
The bus operator struggled during the pandemic, as Brits were more likely to take the car than bus to social distance.
But with the cost of living crisis weighing considerably on household budgets, commuters are more likely to be catching the bus now – to avoid spending money on fuel.
In a statement today, chief executive Martin Griffiths said he remains positive in the group’s outlook.
“We have made further progress as we rebuild from the pandemic, manage the immediate-term macro-economic headwinds, and position our business to maximise the opportunities for growth as we transition to a net zero future,” he said.
“At the same time, the current economic environment is helping to demonstrate the good value of our public transport services and encourage modal shift away from the car.”