Bus Éireann halved it losses last year as its passenger numbers topped 100 million for the first time, its annual report shows. The company carried out 107 million so-called passenger journeys in 2023. That was up 19.5 per cent over the previous year.
The group generated revenue of €583.7 million in the year, up 14 per cent on the year before. It made a loss of €684,000 during the year, although this was less than half the loss of €1.5 million it made the year before.
Bus Éireann chairwoman Miriam Hughes cited the “exceptional inflationary” conditions and a “challenging operating environment” for service delivery to explain the company’s failure to turn a profit, but insisted it “managed to stabilise” its finances in the year.
The group delivered earnings before interest, depreciation and amortisation of €1.5 million, which was down from €2.9 million the year before. Net balance sheet assets were €30.9 million at the end of the year, compared to €31.6 million in 2022.
Ms Hughes said costs related to the group’s commercial service Expressway “are accelerating”, and the company has delayed its projection for a return to profitability on those services, which account for 8 per cent of the group’s overall business, out to 2025.
Bus Éireann chief executive Stephen Kent admitted the group’s bottom line “fell short” of its ambition, but said costs – including pay, spare parts, insurance, energy – were all increasing in the context of the macroeconomic backdrop. “Without subvention these costs impact our commercial business,” he said, adding that some of the headwinds experienced in 2023 “will continue into 2024, but hopefully with diminishing emphasis”.
“The inflationary cost environment precipitated by the war in Ukraine is expected to ease in 2024, but energy costs in the past year were higher than ever before, and these costs had an inflationary impact on other costs,” he said. “We must continue to manage costs very tightly as we did in 2023, for what is a very competitive and low-margin business.”
Mr Kent said the availability of drivers and mechanics restricted the group’s full growth potential, which he said was an industry-wide issue. The annual report shows the company hired 338 new drivers over the year. Payroll costs increased to €167.3 million with an average headcount of 2,932, compared to €154.3 million in 2022 with an average headcount of 2,827.
He said “significant investment” was planned over the coming years under Bus Connects and Connecting Ireland that would deliver “material increases” in capacity.
Mr Kent said “continuing to adapt” to a competitive and inflationary environment would be “essential” in 2024 when the company will face even higher costs on fuel due to the rolling 18-month time lapse on its fuel hedge. “In addition we will need to focus harder on achieving incentives rather than incurring deductions on our contract performance for the business to be resilient into the future.”
Mr Kent’s remuneration package totalled €286,000, which was down from €302,000 the year before.
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