Stagecoach slows losses in bus revenues

Stagecoach shares revved up 3% after the transport giant put the brakes on its tumbling revenues in its UK and US bus businesses.

Stagecoach lost London bus contracts and blamed tumultuous “local economic conditions in some parts of the UK” as well as cheaper fuel prices luring people to cars for its 1.7% fall in passenger bus journeys in the 44 weeks to March 4. But that was better than in the first half.

In the US, its Megabus inter-city coach business was also hit by lower fuel prices, which strengthened competition from cars and planes; revenues slipped 2.2%.

However, the UK rail business was brighter, with ticket sales at Stagecoach’s Virgin Rail joint venture increasing by 5.3%.

Shares rose 6.6p to 205.9p, a sharp U-turn for the stock, which plunged on Monday when the Government surprised the market by stripping Stagecoach of the South West Trains franchise that it has run since privatisation in 1996 and handing it to rival First Group and Chinese operator MTR.