Trainline ‘confident’ it can navigate coronavirus downturn as revenue grows
Travel ticketing platform Trainline has said that it is “confident” it can navigate an extended coronavirus downturn, as its revenue grew 24 per cent last year.
The firm said that although passenger numbers in the UK and Europe are currently down 95 per cent, its long term growth strategies remained intact.
The figures
Trainline said that revenue increased 24 per cent to £261m at top end of guidance, due to net ticket sales growth, which increased by 17 per cent to £3.7bn.
The firm pulled in an operating profit of £2m and loss after of tax of £81m, primarily driven by exceptional costs relating to its initial public offering (IPO) in June.
The ticketing platform also said it had free cash flow of £59m due to reduced capital expenditure to £8 to £9m.
At the end of May, Trainline said it had liquidity headroom of around £150m in order to see it through the current crisis.
Why it’s interesting
The firm said that the coronavirus pandemic could actually benefit its business in the long-run by encouraging a shift to digital ticketing as people become more hygiene conscious.
It added that given the prevailing economic downturn that is anticipated, initiatives like its “Splitsave” fare, which finds ticket combinations to save customers’ money, could grow in popularity.
What Trainline said
Clare Gilmartin, the firm’s chief executive, said: “We are pleased to have delivered a strong performance over this past year, in particular to have exceeded expectations set at IPO for full year revenue growth and earnings. We have also made significant progress against our strategic priorities.
“In recent weeks we have seen disruption to our business due to COVID-19, and are grateful to our frontline staff in particular for helping our customers over this period.
“We remain confident that the long-term growth opportunity for our business remains unchanged, and are committed to our long term growth plans.”