FirstGroup says Q1 revenue lower

15th Jul 2016 07:25

(ShareCast News) - Transport operator FirstGroup said first quarter revenue decreased by 1.4% in constant currency, with revenue growth in First Student, First Transit and First Rail offset by decreases in First Bus and Greyhound.It added that there was no change to overall outlook for the current year, "recognising that the degree to which potential net currency benefits as a result of our significant US dollar based businesses will be offset by a more challenging macroeconomic outlook for our UK businesses is uncertain, following the outcome of the EU referendum".The company said it was too soon to judge the overall effect of the UK's decision to leave the European Union on the group."More than two thirds of group adjusted operating profit was generated in North America in the last financial year, and the weakening of sterling since the referendum outcome would, if maintained, result in translation benefits from our US dollar denominated businesses, albeit partly mitigated by some US dollar denominated costs incurred in the UK divisions (principally for fuel), and some US dollar interest and tax costs," FirstGroup said."Like other business sectors, our UK-based First Bus and First Rail operations are affected by trends in the wider economy, including factors such as weakening economic growth and lower consumer confidence.""The degree to which the net currency benefit from our US-based operations will be offset by more challenging UK economic conditions for our UK-based businesses is uncertain at this stage."