Luas operator reports 6.5% rise in revenue

THE OPERATOR of Dublin’s Luas light rail system enjoyed a 6.5 per cent rise in revenue last year, though pre-tax profits fell due to increased administration costs.

Accounts for Veolia Transport Dublin Light Rail Limited show that turnover recovered last year having fallen in 2009. Sales reached €42.3 million in 2010, up from €39.7 million in 2009. The improvement was due to “increased activity”, the company said.

Pre-tax profits were lower in 2010, at €1.9 million, compared to €2.3 million a year earlier as administration costs affected the bottom line. Administration expenses increased from €15.8 million to €18.9 million last year, the accounts show, representing a jump of 19 per cent.

The company increased its staff from 226 to 247 last year, with payroll costs amounting to €11.7 million, up from €10.7 million in 2009.

The company, which is charged by the Railway Procurement Agency with operating Dublin’s two Luas lines, paid a €1.9 million dividend to its Dublin-registered parent company, Veolia Transport Ireland, last year, compared to a dividend of €3.3 million in 2009.

The company’s parent owed it €5.2 million at the end of the year, down from €3.6 million in 2008.

The company is ultimately owned by French transport and environment company Veolia.

Shareholders’ funds at year end stood at €3.8 million, down from €4.03 million the previous year.

The 2010 figures from Veolia Transport Dublin Light Rail Limited tally with recent passenger figures from the Railway Procurement Agency which showed that the number of journeys made in 2010 had risen to almost 27.5 million, setting a new record for the system.

The number of passenger journeys on Luas had been rising each year from the opening of the service in 2004 to 2008, when they reached 27.4 million. However, the number of journeys had fallen back to 25.4 million in 2009, prompting fears of further falls amid declining employment numbers.

It is envisaged that this year’s extension of the Red Line to City West and Saggart may bring total numbers close to the 30 million mark in 2011.

The new line, which was opened in July, has five new stops at Fettercairn, Cheeverstown, Citywest, Fortunestown and Saggart, close to the border with Co Kildare.

The extension is expected to add two million passenger journeys to the Red Line.