Trainline share price soars after government scraps rival ticket app
The Trailine’s share price continued to soar on Friday morning after yesterday’s announcement by the government that it would scrap a rival ticket app.
The rail ticket company’s stock rallied this morning, rising by 19 per cent after the open, increasing 17 per cent after an hour of trading, to 331p.
This comes after the Department for Transport, currently headed by Mark Harper, detailed fresh plans on Thursday for British Rail, but admitted “confirming that we are not pursuing plans to deliver a centralised Great British Railways online rail ticket retailer.”
The government added that “train operators will continue to retail to passengers online alongside existing third-party retailers while we develop measures to spur further competition in the online rail ticket retail market to make things better for passengers.”
According to Sharecast, Trainline was facing increasing concern from investors due to the proposed rival app, with more than 60 per cent of its market share under threat, according to analysts at JP Morgan.
The Trainline’s share price has been steadily increasing in the last year, up more than 20 per cent.
Last month, the company 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 Trainline has been approached for comment.