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28.11.14

Network Rail reports dip in revenue as pre-tax profit more than halves

Network Rail has reported a drop in both revenue and pre-tax profit, the latter of which has more than halved compared to the same period last year.

The company has released its half-year financial results for the six months ending 30 September and they show that revenue fell 4% from £3.26bn in 2013 to £3.12bn in 2014, a drop of £145m.

Pre-tax profit more than halved, falling 57% from £751m in 2013 to £321m in the same six month period in 2014.

Network Rail blames the drop in revenue on efficiencies delivered in the past two control periods that have allowed the Office of Rail Regulation to reduce the prices Network Rail charges train operating companies for the use of the network.

Summarising the results Network Rail said: “These half-year results are the first results of the new five year control period and represent a steady start to an important period in the history of the railway network.”

The company added: “Demand for rail continues to grow as our railway continues to be the fastest growing in Europe, as well as its safest. To respond to that growth we will be investing some £25bn by 2019 in growing and expanding the network to provide a better and improving service to passengers and freight services.

"Increasing capacity on a complex network, at the same time as keeping it running safely, reliably and punctually every day, is the challenge we face. We have clear strategies to deliver the improvements required in the months and years ahead."

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