Trainline, a digital rail and coach platform, reported surging in revenue in the 12 months to the end of February. The Group’s net ticket sales skyrocketed to £5.3 billion, a 22% year-over-year (YoY) increase, hitting the top end of its guidance range of 17% to 22% growth.
The Group’s revenue soared to £397 million, a 21% YoY jump that surpassed its guidance range of 15% to 20% growth.
Trainline shares were 11% higher at the time of writing.
“Rail ticketing platform Trainline is enjoying multi-faceted growth with both its UK and international businesses showing real momentum,” said AJ Bell investment director Russ Mould.
“The company, which makes its money by earning commission and fees on ticket sales supported by ancillary services like insurance, is looking to boost an already dominant market share in the UK.
“The track has been cleared here by the cancellation of a state-sponsored Great British Railways rival platform. The gradual easing of industrial action is also helping here and there is an opportunity to capture people who up until now have continued to buy paper tickets.”
The International Consumer segment also witnessed strong growth, with net ticket sales hitting £1.0 billion, a 14% YoY increase.
Spain and Italy, markets where carrier competition is most prevalent, led the charge with a combined 43% YoY surge in net ticket sales, solidifying Trainline’s position as the preferred aggregator.
Meanwhile, the combined net ticket sales across France and Germany grew 3% YoY, reflecting Trainline’s strategic decision to pause brand marketing in France until more widespread carrier competition emerges.
“The company is also increasingly targeting the European market where the greater reliability and affordability of rail travel makes for a compelling opportunity. It feels telling that the Madrid-Barcelona route is now the third most popular across all the countries it operates in, including the UK,” Russ Mould said.
