CIE back in profit but concern raised

CIE returned to overall profit last year but has warned that additional funding will be needed if its Bus Éireann division is to avoid generating a loss from its public service obligation (PSO) services this year.

Publishing its latest annual report yesterday, CIE reported a group surplus of €9.8m for 2014, a turnaround from a deficit of €11.6m in 2013. In 2012 the State transport company admitted that an €11.7m surplus would actually have been a €45m loss if it hadn’t been for emergency State funding and the sale of certain land assets.

Last year’s profit was supported by a €52.2m increase — to €817.1m — in fare revenue and commercial income. Cash generated from the group’s operations grew by €2.2m to €52.6m.

Group chairwoman Vivienne Jupp said 2014 saw further improvements after “an extremely difficult” five-year period up to 2012, including a near-10 million, or 4%, increase in passenger journeys (to 237.5m).

Fare revenue increased by over 6% to €42.3m. The group lowered its overall net debt last year by €84.3m, from €102.8m to €18.5m.

Bus Éireann last year generated a small positive return on the cost of the public service obligation services it provided in 2014. CIE said the costs of providing the 2015 service is around €38m, but only €32m funding is available from the National Transport Authority.

“As a consequence, a deficit is anticipated to arise on the provision of PSO services in 2015, if additional funding is not secured,” it said.

It also sees as a challenge the 10% market opening of the Dublin Bus and Bus Éireann PSO market next year.