London Midland records growth in revenue and journeys made
Passenger revenue for Go-Ahead for the period from January 1 to April 19 grew by 6% for London Midland and 3% for Southeastern, but fell by 5% for Govia Thameslink Railway (GTR).
The number of passenger journeys also fell for Go-Ahead’s two Southern England franchises, by 0.5% for Southeastern and 3.5% for GTR. However, the number of journeys made on London Midland rose by 4%.
A cost efficiency programme is being implanted on Southeastern to offset expected revenue shortfalls until the contract ends in December 2018. LM is expected to make profit share payments to the Department for Transport until the end of the franchise in October 2017.
In its third quarter trading statement released on April 20, Go-Ahead claims that service levels have “stabilised” on GTR despite industrial action. It adds that it is in discussions with the DfT regarding “a number of contractual variations”, and that it expects any impacts on profitability to be consistent with guidance issued in its interim results.