Trainline shares were at the top of the FTSE 250 leaderboard on Thursday after the ticketing app announced strong sales growth in the first half of the year.
“Trainline sales are tracking ahead of analyst estimates with more consumers switching to digital tickets being one of the main drivers. It may not feel like it for many commuters but there has also been a reduced effect of strike action in comparison to last year,” said Adam Vettese, Market Analyst at investment platform eToro.
Trainline enjoyed revenue growth of 16% year-on-year in the first half, driven by a 13% jump in ticket sales. Investors will be pleased to see strength in the UK after a couple of soft periods for Trainline.
“Double-digit gains in net ticket sales and group revenue point to a fantastic first-half period for Trainline,” said AJ Bell investment director, Russ Mould.
“Acting as a big tailwind is a structural shift in the UK for people to use digital tickets rather than paper ones. As more people become accustomed to scanning their phone to get through station barriers, the bigger the opportunity for Trainline to position itself as the go-to place for buying these types of tickets.
“A second tailwind is increased carrier competition in mainland Europe, primarily in Spain and Italy. Trainline has been able to position itself as an easy way to navigate the increasingly complex travel system and get good deals.”