Arriva’s investment and innovation delivers another year of growth

Leading European passenger transport group Arriva today publishes a review of its performance in the 12 months to 31 December 2014 and an update on its prospects for the future.

Arriva financial overview:

• Another year of strong growth across the UK and mainland Europe reflecting recent acquisitions and contract wins
• Actively embracing the digital world for our customers
• Continued focus on improving the customer experience and quality of services provided
• Ambitious environmental targets with an ongoing emphasis to reduce fuel consumption and emissions
• Opportunities to expand further within the UK bus and rail market

David Martin, chief executive of Arriva said: “We have continued to invest all of our operating cash flow in growing our business over the past 12 months. That positive strategy is reflected in our continued strong revenue and EBITDA growth.

“Our success in the UK and across mainland Europe perfectly positions us to take advantage of transport markets as they advance and liberalise.

“That pace of change is increasing and we are determined to embrace pending EU legislation, including the progress of the fourth railway package, which has the potential to help us deliver further long-term growth and passenger benefits.

“In the UK our bus investment programme is delivering a greener fleet, and includes the introduction of 230 new hybrid buses alongside a growing fleet of electric and gas buses.

“While in UK rail, this summer we will submit an innovative, compelling bid for the Northern rail franchise – drawing upon our experience gained from operating train services for customers across Europe.

“We have seen significant growth across mainland Europe through a variety of contract wins – helping to strengthen our position in both the bus and rail markets – especially in the Northern and Eastern European territories.

“Innovating for our customers is also a significant, ongoing focus. We were pleased with the Department for Transport’s decision to allow CrossCountry to permanently retail our industry-leading advance purchase ticketing solution, while across the whole of Europe our approach to smart ticketing and smartphone technology is making our services more appealing and accessible.”

Customer service and operational performance

• Continued outstanding levels of customer satisfaction across Europe
• The autumn 2014 National Rail Passenger Survey showed Grand Central is the UK’s highest-rated long distance train operator with 94% of passengers satisfied.
• Chiltern Railways was named the UK’s highest rated DfT franchised operator with an overall satisfaction score of 91%.
• The latest customer satisfaction survey in Denmark showed our rail services achieved a rating of 7.8 out of 10.
• In the Netherlands customers rated both our bus and rail services at 7.5 out of 10.

Growth and investment in operations

• Arriva UK Bus announced an investment programme worth in excess of £45million to facilitate a major upgrade of its fleet including the roll-out of more than 230 new carbon efficient vehicles – bringing the total investment in the UK fleet to over £500million since 2008.
  • Electric buses now operating in the Netherlands and the UK
  • Gas buses in operation across six territories including Italy, Denmark, the UK and the Czech Republic
• Grand Central had its application for an extended 10-year contract agreed by the Office of Rail Regulation. This will enable significant investment in rolling stock and passenger facilities at stations.
• Mainland European contract wins include:
  • A dual £1.1billion contract in the East and West Brabant region of the Netherlands
  • An £8.4million contract as people mobility partner for the 2015 Expo Milano
  • A five-year contract to operate bus services in Serbia and a further 10-year bus contract in Slovenia.
  • Continued operational progress in Central and Eastern Europe following the 2013 acquisition of Veolia Transport Central Europe. Further growth is expected in 2015
  • Latest eight year contract in Budapest, operated on behalf of the Budapest Transport Authority, began on 1 May 2015

Innovation and technology

• Department for Transport approved CrossCountry to retail Advance Purchase tickets on the day of travel on a permanent basis.
  • 150,000 journeys have been made with CrossCountry using the tickets, helping passengers to secure the best possible prices up to 10 minutes before departure
• Arriva’s fully integrated mobile app covering its UK Bus operations reached over 500,000 downloads. The app will see new functionality during 2015.
• Arriva will be part of a London-style smart ticketing initiative which will be launched across England’s largest cities in 2015. The initiative sees all major bus operators involved and represents a multi-million pound investment.
• Arriva London will operate Transport for London’s first fully electric bus route from September - marking the first order of electric vehicles to be solely funded by a London operator.
• Arriva Denmark winning the rights to operate the world’s first electric city car sharing scheme, working closely with international partners for the launch in autumn this year. The scheme will be closely integrated with the public transport network.
• In Italy, our SADEM bus operation is part of a newly-introduced contactless smartcard and real-time information scheme which is benefiting customers in and around Turin.

People

• The latest Deutsche Bahn Employee Survey saw Arriva increase levels of employee satisfaction – up from 3.6 in 2012 to 3.7 in 2014. 88% of employees understand their role in delivering excellent customer service, with 67% being proud to work for Arriva.
• The launch of Arriva’s DRIVE initiative – a leadership programme for senior managers which is equipping our leaders for the future. The programme runs in partnership with a variety of respected business schools and links closely with development programmes within Deutsche Bahn.