FirstGroup revenue ahead despite bus struggles

UK and North America passenger transport operator FirstGroup posted an update on its trading for its third quarter to the end of December 2016.

The FTSE 250 firm said the trend of overall trading and expectations for the full year was unchanged, and that reported group revenue increased by 12.8% in the third quarter, benefiting from favourable currency translation.

Group revenue in constant currency was flat, with growth in North America offset by previously announced rail franchise changes and First Bus trading.

In constant currency, First Student revenue grew 1.0% during the quarter and 0.5% in the year to date, while First Transit’s figures were 5.5% for the quarter and 4% for the year-to-date.

Long distance coach service Greyhound was up 1.2% for the quarter, but down 2.5% for the year to date, while First Bus was down on both measures, by 0.6% and 1.1% respectively.

First Rail was ahead 1.1% for the third quarter and 0.8% for the year-to-date.

“Our overall trading performance continues to support our expectation of good progress for the current year,” said FirstGroup chief executive Tim O’Toole.

“Our substantial North American operations are delivering encouraging performances and are benefiting from currency tailwinds, but we continue to experience tough trading conditions for our First Bus and First Rail operations in what remains an uncertain UK macroeconomic environment.

“We remain focused on disciplined execution to deliver significantly increased cash generation for the full year.”