Higher ticket prices failed to offset a cut in Government funding at Northern Rail,which operates train services across the district.
The company, which is a joint venture between Serco Group, the international services company, and Abellio, a subsidiary of NS Dutch Railways, saw pre-tax profits plunge by more than £40 million to £38.5 million last year, even though revenues from passengers grew by nearly £17 million.
Turnover fell by two per cent to £570.6 million after its Government subsidy was cut by £34.2 million.
According to Northern Rail, the increase in passenger revenues was driven largely by higher Govern-ment-regulated ticket fares as well as higher demand and efforts to drive ticket sales.
The Government received £15.1 million from the rise as part of a revenue share agreement.
Ian Bevan, managing director of Northern Rail, said: “The Northern Rail franchise was awarded in 2004 as a ‘steady state’ with no growth expected by the Government and awarding body during the franchise period.
“The only capital investment specified was £250,000 per annum for accessibility improvements.
“However, we have reinvested more than £30 million in capital schemes to date and worked with stakeholders to attract additional third-party investment.”
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