Arriva rail profits decline

Date: 3/3/2010

Rail profits at Arriva declined by 64 per cent in the past year, with operating profit down from £33.7 million to £12.1 million.

Pre-tax profits across the group, meanwhile, were down by 19 per cent in 2009.

Early last year, Arriva stated that ten per cent passenger revenue growth would be required from its CrossCountry franchise in order for profitability to be maintained in its UK train service.

However, revenue improved by just 8.8 per cent in the first seven weeks of this year.

It added that the performance of the franchise is still not reaching the levels it anticipated when it bid for CrossCountry.

Arriva's bus sector, meanwhile, saw operating profits of £91.2 million, compared to £99.3 million last year.

Ensuring low costs meant the company was able to counterbalance a £30 million fuel bill rise, Arriva noted.

Chief executive David Martin commented on the results: "Cost reductions have not been at the expense of operational performance, with reliability, punctuality and customer satisfaction at high levels throughout the group.

"Our tight focus on cost control and a disciplined approach to investment opportunities will continue."

Arriva operates in 12 countries across Europe.