Jan 21 (Reuters) - French train maker Alstom

on Tuesday reported higher than expected sales for its third

quarter, helped by double-digit revenue growth in its systems

and services divisions.

Alstom, which makes trains and signalling systems for urban

and regional rail networks, reported sales of 4.67 billion euros

($4.86 billion) in the quarter ending Dec. 31. Analysts on

average had anticipated 4.49 billion euros, according to a

Visible Alpha consensus.

The group's sales increase was supported by the performance

of its systems division, up 26% on an organic basis, as well as

the contribution from services, up 11% year on year.

Services are among areas Alstom wants to increasingly focus

on as they offer higher yields and predictability, a company

representative told Reuters ahead of the earnings release.

Alstom has been trying to cut debt and improve its finances,

stretched in part because of problem contracts it inherited

after the 2021 acquisition of Bombardier's rail

business.

"We are driving costs efficiency measures as planned and

nearing the end of our integration efforts, allowing us to

confirm our financial targets for FY 2024/25," group CEO Henri

Poupart-Lafarge said in a statement on Tuesday.

Alstom, which has adopted a no-dividend policy to help

tackle its debt - which stood at 927 million euros as of

end-September last year - will resume returning profits to

shareholders once it eliminates its net financial debt, the

company representative said.

The group expects to exceed 4 billion euros in revenue from

services this year, compared with the 1.5 billion in 2020, the

company representative, who spoke on the condition of anonymity,

said.

Out of the five large contracts signed during the quarter,

four were attributed for services, notably a 500 million euro

deal with an undisclosed European partner announced in late

December.

($1 = 0.9602 euros)