Stagecoach sells stake in New York tour bus venture

Transport operator Stagecoach has offloaded its stake in a US joint venture that operates sightseeing bus services in New York City.

Stagecoach is pulling out of the New York sightseeing bus business. Picture: Songquan Deng

The Perth-based group said that it had sold its interest in Twin America to partner City Sights for an undisclosed sum.

Twin America began operating in 2009 and Stagecoach’s North America division held 50 per cent of the voting rights and 60 per cent of the economic rights of the joint venture.

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In December, Stagecoach said slowing economic growth, the Brexit vote and terrorism concerns had begun to take their toll on the company’s UK rail division.

Group chief executive Martin Griffiths cited terrorism attacks in Europe and poor weather as the group posted a statutory operating profit of just under £109 million for the six months to 29 October. That was down from £137.2m in the same period in 2015.

“We are in the lowest growth environment I have seen for a long time,” Griffiths said at the time of the interim results.

Overall group revenues rose to £2 billion from £1.97bn last time. Griffiths said management was pleased with the resilient performance of the business, co-founded by executive chairman Sir Brian Souter, in a “challenging and uncertain political and economic environment”.

The company’s interests include South West Trains and Virgin Trains East Coast.