Trainline forecasts higher ticket sales despite £66m rail strike hit
Trainline has raised next year’s ticket sale forecast on the back of resurgent demand for train travel, despite nursing a £66m hit from UK rail strike action.
The ticketing app said 11 days of industrial action in the first half knocked £66m off its bottom line, as unions and government failed to find a middle ground in a bitter feud of pay.
But soaring demand in its European segment and a growing consumer shift to e-tickets bumped up its full-year guidance for 2024. Shares rose nearly 10 per cent in early trading.
Trainline netted £2.6bn from ticket sales in the first half, up 23 per cent year-on-year and boosting revenues to £197m. Adjusted earnings before interest, taxes, depreciation, and amortisation rose over a quarter to £57m.
The bumper growth was driven by its lucrative international segment, with key markets in Spain and Italy seeing combined net ticket sales jump 50 per cent.
Revenue from international consumers rose 15 per cent to £30m, with net ticket sales up nearly a quarter to £558m.
Jody Ford, chief executive of Trainline said: “Our growth over the last six months reflects our focus on continually innovating and improving the customer experience of purchasing digital rail tickets.”
“The value, ease, and convenience we provide are just some of the reasons we are Europe’s #1 most downloaded rail travel app.”
In a statement, the company said rail passenger numbers had “almost fully recovered following COVID-19 across our core markets”.
“Whilst this was not without some headwinds, including industrial action in the UK and broader macroeconomic uncertainty, we expect Trainline to continue growing strongly into the second half of the year,” Ford added.
Annual ticket sales in 2024 are expected to come in at between 17 to 22 per cent, up from a previous forecast of 13 to 22 per cent. Revenue growth is expected to be between 15 to 20 per cent, compared with a previous 13 to 22 per cent.
Trainline shares have veered off track this year due primarily to industrial action and proposed regulatory changes to the ticketing system from the UK government.