Will those who are posting about income exceeding costs (or not) please be clear about what costs they are referring to? This could variously be the direct operating cost (crews, fuel/power, track access) or include leasing costs or contribution to repaying the capital cost of the vehicle and/or infrastructure. Which of these is being discussed makes a huge difference to the answer.
In respect of Metrolink, costs for the current system are fairly clearly defined; effectively costs for design, build, equip, operate, maintain. As TfGM owns almost all the current infrastructure; plus the vehicles; their costs are directly attributed, as will their maintenance. In respect of the operating contract, TfGM will be paying a facility fee to the operator - which will conver the costs for wages etc.
The future; with tram-train in prospect, is trickier - as there may well then be substantial tram services run over Network Rail infrastructure, or vice versa.
Much more problematic is the categorisation of payments in. As I understand it, TfGM effectively treat the basic Treasury contribution to Metrolink expansion (£520m)as a free-good; as also the third party contributions from Manchester Airport. So when TfGM say (as they do) that revenue growth is currently ahead of budget financing requirements, what they are saying is that there is sufficient income (including concessionary travel income) to cover operational costs (facility fees, fuel/power, maintenance) and also repay the 'funded' element of the costs of vehicles and infrastructure. Which apparently it does.