Trainline Share Price Surged 12.9% on Its Positive FY 2024 Results

The Trainline PLC (LON: TRN) share price surged 12.9% after releasing its final results for the 2024 fiscal year running from 1^st March 2023 to 29^th February 2024. The company reported a significant 22% increase in group net ticket sales, reaching £5.3 billion for the year, hitting the upper limit of its previously elevated growth forecast of 17% to 22%.

The company's revenue rose to £397 million, marking a 21% increase year-over-year, which is above its projected growth range of 15% to 20%.vSales from UK Consumer net tickets surged by 23% to £3.5 billion, indicating a robust recovery in the rail market. 

The improvement was partly due to experiencing fewer and less impactful strikes compared to the previous year (25 strike days in the fiscal year 2024 vs. 30 in FY2023, with an estimated daily ticket sales impact of approximately £4 million in FY2024 compared to £5-6 million in FY2023). 

Additionally, the growth was fueled by a shift towards digital ticketing, with e-ticket penetration reaching 47% of sales, up from 43% the year before. Despite the faster growth in types of travel that generate lower revenue rates, UK Consumer revenue still climbed by 21% to £209 million year-over-year. 

Revenue growth accelerated in the latter half of the year as the company intensified its efforts to generate non-commissioned revenue. International Consumer net ticket sales grew by 14% to £1 billion, led by strong performance in Spain and Italy, where competition among carriers is fierce, resulting in a 43% increase in combined net ticket sales year-over-year.

However, sales grew only 3% in France and Germany, reflecting Trainline’s strategic marketing pause in France, awaiting increased carrier competition. Digital platform usage, mainly via Trainline's mobile app, drove this segment, accounting for 62% of International Consumer transactions.

International Consumer revenue increased 17% year-over-year to £53 million, outpacing net ticket sales due to higher non-commission revenues and more international travel sales, which typically yield a higher revenue percentage.

Trainline Solutions witnessed a 31% increase in net ticket sales to £785 million, buoyed by the IT Carrier Solutions' strong performance and a recovery in UK business travel from a lower starting point. Its revenue ascended by 23% year-over-year to £135 million, primarily driven by internal transaction fees paid by UK Consumer and International Consumer segments.

The company's adjusted EBITDA is anticipated to reach approximately 2.3% of Group net ticket sales, surpassing its prior guidance of 2.15% to 2.25%. 

Trainline share price. 

The Trainline share price surged 12.93% to trade at 371.3p from Wednesday’s closing price of 328.8p.