LONDON (Reuters UK) - Transport operator Stagecoach (SGC) said revenue growth remains constrained and that conditions remain tough across the group, although profitability since May was in line with expectations.
Like-for-like revenue growth at its rail business, which includes London commuter franchise South West Trains, was 1.7 percent for the 24 weeks to October 18, up from a 0.9 percent rise in the three months to end-July, the rail and bus operator said in a statement on Tuesday.
Underlying sales at Virgin Rail grew 6.9 percent, up from a 1.7 percent increase in the previous twelve weeks.
Growth at its bus business was flat, up 4.3 percent during the period, while its North American coaches operation posted a 6.8 percent decline in revenues in the third quarter, compared to a 5.8 percent slump in the three months to end-July.
Stagecoach, which was last week rebuffed in its attempt to buy rival National Express (NEX), said its businesses was not immune to changes in economic conditions but that it was well positioned to trade through the economic cycle.
(Reporting by Rhys Jones; editing by Victoria Bryan)
