Trainline doubles profit as sales in Europe accelerate amid Labour’s nationalisation threat
Trainline’s operating profit soared over 100 per cent last year, fuelled by strong ticket sales, the company said in its annual results published today.
The company reported that operating profit doubled from £28m in 2023 to £56m over the 12 months to 29 February.
New ticket sales rose 22 per cent to £5.3bn up from £4.3bn in 2023 due to strong European demand and an ease in the impact of UK rail strikes, driving revenue growth of 21 per cent to £397m.
Trainline said it had become Europe’s most downloaded rail app during that period.
Trainline’s was particularly notable in Spain and Italy. Combined growth across these two regions was 43 per cent in the year. Domestic ticket sales in Spain have more than doubled for two consecutive years for the group.
Overall sales in Europe hit £1bn thanks to the growth in these key markets.
Jody Ford, chief executive of Trainline said: “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.
“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 four carrier brands competing across its high-speed rail network, we have doubled domestic ticket sales in Spain for the second year running and significantly grown our market share on the top routes.
“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,” Ford added.
Trainline also announced a new £75m buyback programme to begin as soon as the existing one ended. Some £38m of shares have been repurchased under the existing £50m programme as of the end of April 2024.
The company has guided year-on-year net ticket sales growth of between eight per cent and 12 per cent in 2025, with revenue growth of between seven per cent and 11 per cent.
Mark Crouch, analyst at investment platform eToro, said: “Trainline has this morning delivered a blistering earnings report, carrying last year’s momentum into 2024 at full steam. The online ticketing platform has delivered significant increases in revenues, cash flows and profits in all operating regions, making notable headway in Spain where ticket sales have doubled for two years in a row.
“Investors will hope the company’s momentum is not derailed following Labour’s recent announcement they plan to renationalise UK railways. At this stage it’s nothing more than a headline grabbing slogan, but uncertainty could lay further down the line should it become a reality.
“The success of Trainline will act as a perfect example of the private sector in action, driving down prices and driving up efficiency. And one that the rest of the industry can surely get on board with,” Crouch added.
Shares are up 26 per cent in the past 12 months.