Bus operator profits up, but they’re not excessive, says industry audit

The Competition Commission’s conclusion that bus operators outside London are making excess profits is challenged in a new healthcheck of the industry.

Andrew Forster

01 July 2011

Arriva subsidiaries, operating profit (EBIT) margin 2009/10

First Group subsidiaries, operating profit (EBIT) margin 2009/10

Stagecoach subsidiaries, operating profit (EBIT) margin 2009/10 Note: EBIT = earnings before interest and taxation (also referred to as operating profit)

Aggregate bus company profits increased in 2009/10 for the third year running, but many operators are failing to make “appropriate” levels of profit, according to the annual survey of the industry by public transport consultancy the TAS Partnership.

The Competition Commission’s ongoing inquiry into Britain’s local bus market outside London has put the industry’s profitability under increased scrutiny in recent months. The Commission’s provisional findings in...