The company's total revenues were up 57% year-on-year in the nine months to September 30 as a result of growth in its mainland Europe services and the addition of the CrossCountry rail franchise, which began in November 2007.

Arriva's statement said: "While no business is wholly immune from current economic uncertainties, the group's diversified nature, with bus and rail operations in 12 countries, a £12 million order book, and more than 60% of revenues from government contracts, gives it a high degree of resilience and stability".

Year-on-year revenues were up 51% in the group's mainland Europe division for the first nine months. The group said this reflected acquisitions, new tender starts and the increased strength of the euro against the pound.

Revenues for the UK regional bus business increased 6.3% year-on-year in the first nine months and mileage in the London bus business was up 4.5%. In the CrossCountry franchise, like-for-like passenger revenues were up by 11.9% for January 6 to October 11 - compared with 10.3% at the half year stage.

Arriva Trains Wales meanwhile saw increased revenues of 12% year-on-year for the same period. Analyst Gert Zonneveld at Panmure Gordon said Arriva had traded well in the third quarter, with performances in line with management expectations.

"Rising congestion, increasing environmental awareness and high fuel prices have in our view created a modal shift which supports passenger volume growth," he added.

Research analysts at Dresdner Kleinwort said the year-to-date trends were "very encouraging", with the accelerating rate of revenues growth in the CrossCountry division "usefully ahead" of current forecasts.

Arriva said it was introducing more than 460 new buses over 2008, representing an investment of more than £63 million.

The Sunderland-based firm hit passengers with a 4.8% increase in peak fares at the start of the year, with off-peak tickets rising by an average 7% - well above the rail industry average of 5.4%.

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Arriva says outlook positive

SHARECAST: 28 Oct 2008

LONDON - Bus and rail firm Arriva said the outlook for 2008 continues to be positive with revenue and earnings growth for the year being anticipated in line with management expectations.

Group revenue increased by more than 57% year-on-year in the nine months to
September, reflecting growth in mainland Europe and the effect of the
CrossCountry rail franchise which began in November 2007.

Mainland Europe division rose 51% for the first nine months, reflecting acquisitions, new tender starts, and the impact of the euro strengthening against sterling.

In its CrossCountry rail franchise, like-for-like passenger revenues increased 11.9% from 6 January to 11 October 2008. Arriva Trains Wales passenger revenues increased by 12% for same period.

In its UK regional bus business, revenue for the first nine months of the year increased 6.3%.

“While no business is wholly immune from current economic uncertainties, the Group's diversified nature, with bus and rail operations in 12 countries, a £12 billion order book, and more than 60% of revenues from government contracts, gives it a high degree of resilience and stability,” it said.

The group added that its hedging policy is protecting it from material impact during 2008. The final average price paid for fuel in 2008 is anticipated to be 28.2p per litre.

It also has 82% of its fuel requirement for 2009 fixed in price. The current average price fixed for 2009 is now 41.3 pence per litre.

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Arriva Sees FY08 Results Matching Co.'s Expectations

RTTNews: 10/28/2008

Arriva Plc, a transport service organization in Europe, said the outlook for 2008 continues to be positive with revenue and earnings growth being forecast in line with its expectations.

For the nine-month period, revenue increased by more than 57% from the last year, reflecting growth in mainland Europe and the effect of the cross-country rail franchise.

Segment-wise, the company's mainland Europe division was up by 51% in the first nine months, reflecting acquisitions and the impact of the euro strengthening against sterling. In its UK regional bus business, revenue for first nine months increased by 6.3%, and mileage in London business increased by 4.5%.

In its cross-country rail franchise, the like-for-like passenger revenues increased by 11.9% for the period from 6 January to 11 October 2008, while its Trains Wales passenger revenues grew by 12.0%.

Arriva said its financial position remains robust with a strong balance sheet and strong operational cash flows and that it continues to see and take advantage of attractive investment opportunities and gearing.

The company also said it continues to manage fuel costs proactively and presently has 82% of 540-million litre fuel requirement fixed in price, with additional around 14% covered by indexation and 4% remaining unfixed. The current average price fixed for 2009 is now 41.3 pence per litre.

Currently, the stock is up 24.00pence, trading at 600.50 pence on the London Stock Exchange.