Connex, the French company that runs the Luas system in Dublin, made an operating profit of €327,949 last year after the introduction of the tram service, newly-filed accounts reveal.
More than 70,000 passengers use Luas each day and Connex's profit for 2005 - the first full year in service - is likely to rise significantly. Luas operates under a public-private partnership contract with the Railway Procurement Agency (RPA), the semi-State body that owns the tram network.
With more than 20 million passengers using the system this year, plans to link the two lines in the city centre are also under discussion. Five route options are being assessed, with the RPA believing such a link would increase passenger numbers by 5.5 million per year.
Connex Ireland received €15.04 million from the RPA in 2004 to mobilise the system and operate the Sandyford and Tallaght lines after they opened in June and September respectively.
This turnover figure, which excludes value added tax, does not reflect the money collected in fares from passengers, which goes directly to the RPA.
The Connex Ireland results were made public yesterday as the Cabinet approved the first fare increase on the service. Fares will rise by some 3.8 per cent in January or an average of five cent per journey. Bus and train fares will also rise from next year.
Connex Ireland chief executive Richard Dujardin declined to disclose the breakdown of revenue between mobilisation grants and operating contracts in 2004, which he described as "very much a partial year".
However, accounts lodged on Monday in the Companies Office show the firm realised a profit of €430,777 last year for its mobilisation work in 2003 and 2004.
Mr Dujardin said Connex Ireland receives monthly revenue grants from the RPA based on its attainment of targets for passenger numbers, punctuality and cleanliness. "The take-up has been fantastic. It's really a success story," he said.
Operating grants aside, the company's package includes separate payments for maintaining the system. Connex Ireland employs 135 staff, 123 on the tram services and 12 in administration. It paid €3.83 million in wages and salaries in 2004. An operating profit of €327,949 was posted after deducting €6.66 million in administrative expenses from the gross profit of €6.99 million. After corporation tax of €49,868, Connex Ireland had a net profit of €277,259 in 2004.
