The annual accounts of Nottingham City Transport show passenger numbers have increased, while more than £1.5 million in profit has been made.
The yearly report published on Companies House shows millions of pounds have been invested in new low-emission buses, while more new drivers have also been recruited.
Unlike most bus companies, NCT is not privately owned. As a municipal company, it is primarily owned by Nottingham City Council, which uses the profits to help fund other council services.
NCT also says it hopes introducing contactless card payments in the near future will continue to improve its service.
Between April 2018 and March 2019, the company carried 49.14 million passengers compared to 48.842 the year before – an increase of 298,000.
Profits before tax and interest were also up – £2.2 million compared to £1.934 million the year before.
However, this year’s profit was affected by a £760,000 charge for changes to the company’s pension scheme, meaning the total was £1.52 million.
Commenting on the accounts, a spokesman for NCT said: “At a time when overall bus patronage in England is falling, NCT continues to attract more people on to its buses, with bus use in Nottingham the second-highest per head of population in the country.
“Increased usage allows us to continue investing in Nottingham’s buses, with air quality improved in the city following our £42m investment in low emission buses since 2017 and contactless payments being introduced soon.
“Through our public ownership, a successful year for NCT allows us to provide a dividend to Nottingham City Council, which puts our profits back into council services provided for the residents of Nottingham.
Councillor Adele Williams is the portfolio holder for transport and represents the Sherwood ward for Labour.
She said: “Nottingham City Transport is the envy of many cities, where private operators don’t always run services that are best for the city as a whole.
“Keeping NCT in council ownership has helped us to create one of the best integrated public transport networks outside London.
“These latest accounts show once again how the people of Nottingham benefit not only from ongoing investment in clean, modern buses and service improvements but also from council services which NCT’s profits help to fund.”