Trainline shares surge on profits, Labour plan to ditch app
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Shares in online rail ticket platform Trainline surged on Friday as it reported better-than-expected revenue along with a sharp jump in annual sales and profits, driven by competition for passengers in Spain and Italy.
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The company also unveiled a £75m share buyback and forecast year-on-year net ticket sales growth of 8 - 12 % in 2025, with revenue growth of 7 - 11%.
Revenue was up 21% to £397mfor the 12 months to February 29, while ticket sales rose 22% to £5.3bn and adjusted core profit hit £122m, an increase of 42%, while operating profit doubled to £56m.
Combined growth across Italy and Spain was up 43%, while domestic ticket sales in Spain have more than doubled for two consecutive years for the group, helping overall sales in Europe hit £1bn.
In the UK, net ticket sales were £3.5bn, up 23% reflecting continued rail market recovery, as well as the industry experiencing five fewer strikes than in the prior year at 25 "which were also less severe in their impact", Trainline said.
Net ticket sales growth also reflected more people switching to digital tickets - with industry e-ticket penetration at 47% of ticket sales, up from 43%, while long-distance and leisure travel remained strong.
“New entrant carrier competition is revolutionising rail in Europe as more customers benefit from greater choice, lower prices and the opportunity to choose greener travel," said chief executive Jody Ford.
“We are becoming the aggregator of choice in the UK and internationally and are delivering strong growth, particularly in those markets liberalising fastest such as Spain.
“With new entrant carrier competition set to ramp up in Italy, France and the UK in the coming years, the opportunity grows to create a golden age of rail travel."
Trainline also revealed Britain's opposition Labour Party has no plans to revive government plans to introduce a national rail ticket website and app if it wins the next General Election.
Trainline last week hosted Labour's launch of its policy proposal to bring private rail operators back under public ownership and create a centralised body called Great British Railways. The news actually sent shares in the online ticketing platform 10% lower.
"However, they have confirmed to Trainline that they have no plans to revive the current government's previous proposal for a national retailing website and app. They also announced plans to accelerate the roll out of key customer innovations, including automated Delay Repay and digital season tickets," the company said.
Reporting by Frank Prenesti for Sharecast.com