FirstGroup, the buses and rail operator which runs rail services from London’s Paddington, is paying the price for losing a string of rail franchises last year.
Rail revenue will be “substantially lower” in 2015 after it suffered some big losses, including ScotRail, which it had run for many years, and Thameslink services.
It also lost out on tenders for major new franchises including the East Coast and West Coast mainlines, which ended up with Virgin Trains.
The company noted today that ministers have brought forward the timetable for some franchise competitions, including South West Trains, although they have pushed back the outcome of other significant franchise competitions.
FirstGroup, which has attracted the interest of US activist hedge fund Sandell Asset management, which has called for its break-up, said it was trading in line with expectations.
The student buses business is pushing contract renewal prices up by 5% and is retaining 80% of its contracts.
Greyhound Buses, which launches domestic services in Mexico this week, has seen revenues fall almost 6%.
