I got the train from Montpellier to Nice a couple of years back. It was something like £30 to buy a ticket on the day for a 5 hour 300km journey. The trains were old stock but there were clean and comfortable and had plenty of room for everyone. Am I missing something when we are told how important it is to have these brand-spanking new stock that only private rail companies can provide? If they clean, have working toilets and a drinks trolley who gives a shit about what else? The wi-fi is extra and never works (4G on phone is more reliable) so why are we paying a premium price? Is it all shareholder dividends?
Yes. The passenger's ticket price goes to the Train Operating Company (TOC) and the government also pays the TOC a
subsidy. The rail company pays Network Rail for it's track access slots (which is government-run after the failure of Railtrack as a privatised entity following the Hatfield crash), and a Rolling Stock Operating Company (ROSCO) to lease the trains. From what's left it pays for it's staff, station upkeep and maintenance of the rolling stock. Any profit left over goes to it's shareholders. The ROSCO also has shareholders, so sets it's lease prices for rolling stock accordingly to generate some profit.
In France, the goverment pays SNCF a subsidy on top of their income from tickets and freight operations to build and maintain the infrastructure, run the trains and maintian and buy rolling stock. Their trains are a lot more roomy due in part to them using
continental loading gauge.
Ironically the nationalised state rail operators form many European countries are shareholders in most of the UK TOCs, so our rail subsidies are going back to help pay for the railways in France, Germany and the Netherlands.