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Stagecoach blames Paris attacks for fall in passengers | Stagecoach blames Paris attacks for fall in passengers |
(about 5 hours later) | |
Stagecoach has blamed the Paris terror attacks for a slowdown in revenue growth at the transport group. | Stagecoach has blamed the Paris terror attacks for a slowdown in revenue growth at the transport group. |
The rail and bus operator cut its full-year earnings forecast as it said passengers had cut back on trips to big cities since last month's attacks. | The rail and bus operator cut its full-year earnings forecast as it said passengers had cut back on trips to big cities since last month's attacks. |
The company also said there had been "softer than expected revenue" for several of its regional UK bus businesses. | The company also said there had been "softer than expected revenue" for several of its regional UK bus businesses. |
Shares in Stagecoach closed down 14.4% to 304.7p in response. | |
However, the fall in the share price was also due to other factors mentioned in the statement released with its half-year results, said Nomura analyst James Hollins. | However, the fall in the share price was also due to other factors mentioned in the statement released with its half-year results, said Nomura analyst James Hollins. |
"The combination of a cautious outlook, withdrawal from the East Anglia rail bidding process and clear indication from management that exceptional shareholder returns should not be expected near-term are likely to drive market concerns," he said. | "The combination of a cautious outlook, withdrawal from the East Anglia rail bidding process and clear indication from management that exceptional shareholder returns should not be expected near-term are likely to drive market concerns," he said. |
Chief executive Martin Griffiths admitted that "challenges remain in our sector in the short-term". | Chief executive Martin Griffiths admitted that "challenges remain in our sector in the short-term". |
Stagecoach said that discretionary travel had been worst hit, with fewer journeys to London on its South West train network outside usual commuter times. | Stagecoach said that discretionary travel had been worst hit, with fewer journeys to London on its South West train network outside usual commuter times. |
There were also fewer journeys between Oxford and the capital on its regular coach service. | There were also fewer journeys between Oxford and the capital on its regular coach service. |
Growth rates 'recovering' | Growth rates 'recovering' |
Finance director Ross Paterson said passenger journeys had started to return to more normal levels. | Finance director Ross Paterson said passenger journeys had started to return to more normal levels. |
"We are certainly seeing it recovering, the growth rates, particularly over the last week - they're starting to pick up again," he said. | "We are certainly seeing it recovering, the growth rates, particularly over the last week - they're starting to pick up again," he said. |
Stagecoach runs East Midlands Trains and operates the East Coast and West Coast rail franchises in partnership with Virgin. | Stagecoach runs East Midlands Trains and operates the East Coast and West Coast rail franchises in partnership with Virgin. |
The company also has bus operations in cities including London, Liverpool, Newcastle, Manchester, Sheffield and Cambridge as well as Megabus long-distance coaches in North America, Europe and the UK. | The company also has bus operations in cities including London, Liverpool, Newcastle, Manchester, Sheffield and Cambridge as well as Megabus long-distance coaches in North America, Europe and the UK. |
Lower motoring costs in the US and Canada had reduced demand for Megabus inter-city services, Stagecoach said, prompting a review of its operations there. | Lower motoring costs in the US and Canada had reduced demand for Megabus inter-city services, Stagecoach said, prompting a review of its operations there. |
For the six months to 31 October, revenue rose £430m to £1.97bn, with pre-tax profit up £12.9m to £121.5m. | For the six months to 31 October, revenue rose £430m to £1.97bn, with pre-tax profit up £12.9m to £121.5m. |
The interim dividend was raised by 9.4% to 3.5p. | The interim dividend was raised by 9.4% to 3.5p. |
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