By Daniel Hunter

Rail and bus operator FirstGroup has reported a fall in revenue after it lost a number of UK rail franchises.

FirstGroup said it expected growth to be "challenging" for the rest of the year as lower oil prices continue to have material impact on its North American First Transit business.

Its Greyhound business saw revenues fall by 5.7% in the second quarter of the year as Americans continue to switch to cars.

The UK business saw revenues rise 6.3% from passengers. But the company said sales would be "substantially lower" for the year after missing out on four key rail franchise contracts.

In addition to not gaining any franchises, including the lucrative East Coast line, FirstGroup also lost the First Capital Connect and First ScotRail lines.