Arriva held back
11 April 2012
The crisis on the railways was highlighted by Arriva today as the operator of the long-distance inter-city trains company CrossCountry admitted a slump in revenue growth.
Arriva replaced Virgin on the CrossCountry franchise on the assumption that passenger revenue growth of 10% a year would more than offset the fall in taxpayer subsidies that makes up half of CrossCountry's revenues.
However, Arriva admitted passenger revenue growth was just 1.8% in the first half with the company forecasting further falls.
Arriva's half-year trains profits fell 30% to £10 million, holding back group operating profits to £88 million, 4% up on last year. The interim divi is up 5% at 6.46p.
