ARRIVA’S CASH FROM CHAOS

RMT helpline 0800 3763706 :: september 2008 :: RMTnews 7 Open six days a week - Mon to Fri - 8am until 6pm, Sat - 9.30am to 4pm e-mail: info@rmt.org.uk Legal helpline: 0800 587 7516 - Seven days a week or call the helpline on freephone 0800 376 3706 Visit www.rmt.org.uk to join online JOIN RMT BRITAIN’S SPECIALIST TRANSPORT UNION Problems at work? Call the helpline (Now with two operators and the facilities to translate into 170 languages) T ransport privateer Arriva has just announced a 44 per cent rise in operating profits, raking in £76.3 million in the last six months, due to the growing economic crisis combined with soaring petrol prices. The bus and rail operator is enjoying a bonanza as soaring costs drive people out of cars and planes and on to buses and trains, with a 59 per cent increase in revenue in the first six months to June 30. Arriva, which took over the UK's CrossCountry rail franchise last year, said revenue had risen by £1.4 billion from £902 million last time. The Sunderland-based firm's rail operating profits increased to £14.8 million from £1.1 million since acquiring the Aberdeen to Penzance franchise in 2007. It has managed this by hitting rail passengers with a 4.8 per cent increase in peak fares and an average seven per cent rise in off-peak tickets at the start of the year, which has since reportedly been followed by price reviews across some operations nationwide. The company has also been threatening cost-cutting exercises like withdrawing shops from its Cross Country rail franchise despite bucking rising fuel prices by securing supplies on fixed deals in advance. However, Arriva will be paying an interim dividend of 6.15p a share, up 10 per cent on the payout a year ago and shares rose 4.2 per cent on the day the figures were released. The company's European operations delivered a 50 per cent increase in revenue of £626 million and a 24 per cent rise in operating profit of £34.9 million, boosted by the acquisition of 80 per cent of Hungary-based bus business Interbus Invest. Chief executive David Martin has indicated that the company will be looking to swallow up other franchises in Europe as ‘liberalising’ EU transport directives are rolled out across the European Union regardless of the UK experience with rail privatisation. "Our focus on Europe's diverse transport markets gives us resilience and great potential for further growth,” he said. However, the competition is pretty stiff from other private transport monopolies that view transport networks as herds of publicly-subsidised cash-cows rather than essential public services. ARRIVA’S CASH FROM CHAOS ARRIVA RESULTS • Group revenue up 59 per cent to £1,443.4 million • Group operating profit rose 44 per cent to £76.3m • Group profit before taxation increased by 40 per cent to £66.3m • After taxation Group profit was £51.1m, up from £37.5m for the same period in 2007 • Earnings per share up 31 per cent • Interim dividend increased by 10 per cent UK BUS • Revenue up 14 per cent to £454.5 million • Operating profit up 20 per cent to £45.5 million UK TRAINS • Revenue up to £415.5 million from £121.6 million • Operating profit up to £14.8 million from £1.1 million • Cross Country passenger revenue for 6 months to June 30 up 10.3 per cent • 75 per cent of the annual fuel requirement for Cross Country remains fixed until 2016 • Arriva Trains Wales revenue up 12.3 per cent Companywatch