* H1 pretax profit 108.7 mln stg, vs f'cast 100 mln stg
* Interim dividend up 10 percent
* Eyes new long-term rail franchises
* Interested in East Coast rail contract
(Adds company, analyst comment, shares, details)
By Rhys Jones
LONDON, Dec 8 (Reuters) - Transport group Stagecoach said it hopes to win new longer franchises resulting from Britain's rail industry review, as it beat forecasts with a 43 percent rise in first-half profit.
On Tuesday, the government announced a shake-up of Britain's railways to help slash chronic overspending, and will next year award a 14-year franchise for the West Coast main line and a 15-year franchise for the East Coast main line.
"If the East Coast line is let on the right terms it would be a very big opportunity and we would certainly be interested in that," finance director Martin Griffiths told reporters on a conference call.
"We are also committed to keeping the West Coast Main Line beyond our current franchise and are determined to keep operating it."
The bus and rail operator beat expectations with a 43 percent rise in first-half pretax profit to 109 million pounds ($171 million) -- ahead of an analyst consensus forecast of around 100 million -- on revenues 4.8 percent higher at 1.13 billion in the six months to end-October. The result was driven by rising British ticket sales and growth at its U.S. bus arm.
Stagecoach shares, which have risen 10 percent in the last three months, were 0.3 percent lower at 214.2 pence by 0850 GMT, valuing the group at around 1.5 billion pounds.
"Management remains relatively cautious about the economic recovery, but sees a positive outlook for the group's bus and rail services," said Arbuthnot analyst Gerald Khoo, who rates the stock a 'buy'.
"We remain positive on Stagecoach due to its strong UK bus division and growth at Megabus in the U.S."
Like-for-like revenue at Stagecoach's British rail business, which includes the South West Trains London commuter franchise, grew 6.4 percent in the period, while Virgin Rail, in which it owns a 49 percent stake, achieved sales growth of 14.8 percent.
Underlying revenue at its British bus unit rose 2.3 percent, while its North American coaches operation posted a 7.5 percent rise in like-for-like sales, shrugging off continued tough economic conditions.
Stagecoach, which earlier this year re-entered the London bus market after buying the East London Bus Group, boosted the interim dividend by 10 percent to 2.2 pence and said the recent bad weather in Britain would have only a modest impact on full-year earnings.
"There's no doubt our UK revenue will have taken some hit over the last ten days but it should be relatively small," said Griffiths.
The company is expected to post an average pretax profit of 191.4 million pounds for the year to end-April, according to a Thomson Reuters I/B/E/S poll. (Editing by Sarah Young and Louise Heavens) ($1 = 0.6371 pound)