(Adds details on divisions, comments and share movement)
Dec 10 (Reuters) - British transport operator FirstGroup Plc FGP.L swung to an adjusted pretax half-year loss on Thursday, hurt by continued pressure on its UK rail and bus divisions as restrictions related to the pandemic prolonged the travel slump.
The company, which ferried millions of passengers in buses and trains before the pandemic, said adjusted pretax loss was 73.3 million pounds ($97.80 million) for the six months ended Sept. 30, from a profit of 19.9 million pounds last year.
Despite restrictions hammering income, FirstGroup said its adjusted operating profit was ahead of its prior expectations due to cost cuts and recovering revenue.
The Aberdeen-based company has had a roller-coaster ride so far this year that saw it warning in July on its ability to continue as a going concern to upgrading its profit outlook in September, when passenger numbers started to increase in the post-lockdown period. all public transport providers in Britain, FirstGroup has been supported by government funding during the coronavirus pandemic to cover the costs of maintaining services.
The company also added that it remains in talks for a sale of U.S. intercity coach operator Greyhound and was also seeking to manage capacity and costs better and had gained further support from government aid programmes.
Chief Executive Matthew Gregory had told reporters in July that the Greyhound sale, which it previously said was in advanced stages, had slowed due to the coronavirus crisis.
In a separate statement, FirstGroup said it has reached an agreement with the UK Department of Transport (DfT) for franchise termination payment related to South Western Railway and Avanti companies, and the company is now negotiating new directly awarded management contracts with the DfT.
Shares of the company rose nearly 2% to 70.25 pence in early trade.
On Wednesday, Stagecoach, the UK's biggest bus and coach operator, posted a 99% plunge in half-year earnings. = 0.7495 pounds)