A BUS operator, which runs services across the North-East, says it has benefited from more people choosing public transport after seeing revenues continue to grow.

Stagecoach Group, which operates buses across Teesside, Hartlepool, Sunderland and Newcastle, has revealed like-for-like revenues for its UK bus divisions were up five per cent for the 24 weeks ended October 13, thanks to higher commercial work and services to replace trains.

Bosses also say revenues in its UK rail arm were also up by three per cent, though the after effects of the London 2012 Olympic and Paralympic Games saw its London bus sector revenue fall by 1.6 per cent.

The company's 8,000 buses and coaches transport 2.5 million passengers nationwide every day, and earlier this year, bosses hailed the hot summer weather after seeing user numbers increase in its regional division with people taking advantage of the sunshine to enjoy day trips.

It says its latest figures show strongest growth in commercial revenue, with concessionary, tendered and school revenues growing at a lower rate.

It said: “Our UK bus regional operations division has performed strongly, with both passenger volumes and revenue growing year-on-year.

“Our strongest growth was in commercial revenue, with concessionary, tendered and school revenue growing at a lower rate.

“Revenue growth to October 13 was higher than the previously reported revenue growth of 4.5 per cent for the preceding 12 weeks mainly as a result of revenue from additional bus services to replace train services affected by railway resignalling near Nottingham.

“Our UK bus London division has continued to perform well, and we remain focused on keeping tight control of costs so we can compete for contracts.

“The reduction in revenue includes the effect of non-recurring revenue related to the London Olympic and Paralympic Games, but we expect to reverse that in the second half of the financial year as we benefit from nine new contracts.

“We continue to discuss with the Department for Transport the planned extensions to our South Western Trains and East Midlands Trains franchises, and submitted our bid for the Docklands Light Railway franchise to Transport for London in September 2013.

“We are also continuing with our bid for the Thameslink franchise, and the winning bidders will are expected in Spring next year.”