This time last year, Mobico the owners of the National Express Group were posting financial results which indicated a very challenging year ahead with significant losses in 2023 due to accounting issues with its German rail arm and escalating costs with its transport networks. This resulted in eye-watering losses amounting to £41.9 million, and so one year on, Mobico have published results which are quite frankly impressive.
The group has reported a rise in passengers as well as an increase in fares, which has resulted in higher sales in the UK. It would be fair to say that the transport giant is steadily returning to profitability after what has been a tricky year. Increasing bus fares by as much as 2.5% in certain parts of the UK back in July certainly helped to compensate for fewer passengers after the COVID pandemic. The slow passenger recovery in its largest operating network, the West Midlands, a region they have dominated for decades, is notable. The only significant competitor is the Diamond Bus Company, which holds less than 10% of the market share.
At the same time, the National Express Coach Group, the UK’s largest scheduled national coach network, has enjoyed a good year, partly due to a significant increase in passengers as a result of the regular national rail strikes that have occurred across the length and breadth of the UK. The group reported UK revenues of £307 million in the first half of the year alone, a very healthy 7.7% increase compared to the same period the previous year. They reported an 8% increase in passengers, who have been paying more for their tickets. It will be interesting to see what happens, as the newly elected mayor for the West Midlands has made it very clear that he wants to follow in the footsteps of Andy Burnham, Manchester’s Mayor, who last year launched the UK’s first franchised bus network with the Bee Network across Manchester and the surrounding regions. Richard Parker, the new West Midlands Mayor, would very much like to emulate this achievement.
Transport for the West Midlands has been working closely with National Express West Midlands for some time now on an arrangement with Mobico that will allow them more control over the bus routes and ticket prices. It is expected that a deal will be finalised by the end of the year. The group’s performance has also been enhanced by the strong performance of the Group’s Spanish coach and bus company, ALSA, which has seen growth in both passengers and profitability. They are also anticipating cost savings when they offload the Group’s North American school bus operation.
The success of the Mobico Group is very important to us at uTrack, as we have worked with National Express Coach for many years; they have been our longest-serving customer. We now work across almost all elements of their business and are proud to partner with them and watch how the network has expanded. They offer a high-calibre and fairly priced quality product, a fact testified to by the ever-increasing passenger base. Long may it continue.
Author: Austin Birks
