Trainline shares were down heavily on Thursday after the ticketing app announced full-year results that highlighted a slowdown in ticket sales growth.
Net ticket sales grew 13% in the first half of FY 2025, and revenue increased 16% compared to the same period a year prior. For the full year, ticket sales growth and revenue growth have slowed to 12%.
Investors will be concerned about lower revenue growth as Trianline faces the looming threat of the government launching Great British Rail and a single app for booking tickets. This isn’t an existential threat for Trainline, but it will present stiff competition in the UK market where Trainline has enjoyed a large market share for many years.
The UK accounts for around two-thirds of Trainline’s ticket sales, so overseas revenue will have to increase dramatically to plug any lost sales in the UK. The problem is international sales only rose 4% last year.
Trainline shares were down 13% at the time of writing despite announcing a fresh share buyback of up to £75m.
“Investors in Trainline will be hoping the online ticket operator is not running out of steam,” said Mark Crouch, market analyst at eToro.
“Despite reporting record net ticket sales for the third year in a row, recent ticket sales have shown signs of slowing down. While adoption of digital ticking has seen revenue and consumer sales continue to grow, this was at the lower end of guidance. The announcement of a £75m share buyback this morning will hopefully add some fuel to the furnace for the share price.
“Threatening to further derail Trainline’s momentum is government plans to launch a state-backed rival to the online ticket operator. Exactly how much of a threat this might pose to Trainline is still up for debate. Trainline’s track record of delivering efficiency and value to customers are fundamental to its success – traits not typically associated with government services. Nevertheless, investors are weary, and after this morning’s underwhelming update, they have good reason to be.”