UK-based train and bus company Arriva has seen profits drop in 2005.
Arriva has been looking abroad for earnings growth
Pre-tax profit declined 1.3% to £107.9m ($189.5m) from a year earlier, with the company blaming the ending of its Northern Rail franchise for the slide.
Arriva, which operates double-decker red buses in London, said it planned to increase bus fares to boost revenues and offset higher fuel costs.
The company is also expanding into European markets, including Germany, Italy, Denmark and the Netherlands.
The expansion has helped it offset slower growth in the UK market, and sales at its European business doubled to £515m last year.
Total revenues at the company were £1.63bn, down from £1.76bn a year earlier.
"We expect strong growth to continue through acquisitions and tendering opportunities," said Arriva's chief executive Bob Davies.
Mr Davies said fuel costs probably will be £14m higher in 2006 than in 2005.