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[quote user="cogloadreturns"] The Boss of SNCF is on the record over here in the last RAIL magazine as stationg that the TGV margin is around 18%. No I dont know how that figure came about so I cannot comment beyond. [/quote] The SNCF Group Annual Report does not contain sufficient information to determine if the high speed rail segment covers its operating costs.  Although there is proper transparency with respect to revenue and cost detail for the group as a whole, the segment information is sketchy.     Gross profit and current operating profit are defined; gross profit consists of revenue and income less charges related directly to operations.  Current operating profit includes mostly non-cash items.  SNCF's operating profits are determined similarly to those for U.S. companies.  External and internal revenues are not defined in the annual report.  Thus, it is impossible for a reader to determine what they consist of.  If the external and the internal revenues include first class lounge and gift shop sales, as well as station rentals, presumably for third party vendors, these would not be included in determining the operating margin in the U.S.  However, this does not appear to be the case for train operations; it is true for the group as a whole. Irrespective of whether the high speed rail in France or anywhere else for that matter covers its operating costs, it requires significant monies from the state to cover its total expenses, which include the hefty capital expenditures.  A recent report on high speed rail projects in the U.S., as well as overseas operations including France, released by the General Accounting Office, which is one of the most reputable auditing firms in the world, states the following regarding SNCF's high speed rail:  Prior to the creation of RFF in 1997, most of the funding for the construction of high speed rail lines came from the national government (through SNCF).  Since then, funding for high speed rail construction is derived from a variety of sources, including the national government, regional governments, RFF, SNCF, and the European Union.
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