A bumpy ride ahead for FirstGroup as bus revenues slide

A surge in online shopping over Christmas and an “uncertain” economic environment was blamed for a fall in revenues at FirstGroup earlier.

First, which has a fleet of some 6,400 buses in the UK, saw fare revenues fall 1.1% in the last nine months of 2016.

The company, which runs a fifth of the country’s bus services, warned “industry-wide market conditions continue to be challenging”, while also blaming “mixed Christmas trading” for UK high streets and ongoing congestion issues for the decline.

Overall First’s revenues rose 12.8% in the third quarter helped by favourable currency translation and shares rose 3% to 107.2p.

Striping out the currency benefits and revenues were flat, with growth in North America offset by the bus difficulties and “moderating growth” in its UK rail business, where First runs Great Western.

Boss Tim O’Toole tried to be upbeat but warned of “tough trading conditions” ahead in “an uncertain UK macroeconomic environment.”