Trainline Shares Rally as Company Raises Full-Year Outlook

Trainline (LON: TRN) shares surged on Monday after the company revealed it is raising its guidance for the full year once again.

The rail ticket platform reported strong growth in the first half of the year, with net ticket sales up 14% and revenue up 17% compared to the same period last year. Adjusted EBITDA also increased by 44% to £82 million.

Trainline's strong performance and improved outlook have boosted investor confidence. The company previously set its FY25 guidance in May 2024 before improving it in September 2024. It has now raised it once again.

The company now expects net ticket sales growth of between 12% and 14% for the full year, up from its previous guidance of 8% to 12%.

Revenue growth is also expected to be higher, at between 11% and 13%, compared to the previous range of 7% to 11%. Adjusted EBITDA is now seen around 2.6% of net ticket sales, slightly higher than the previous guidance for adjusted EBITDA to exceed 2.5%.

The company explained that its strong performance is driven by a number of factors, including increased demand for rail travel, the continued rollout of its digital platform, and the benefits of operating leverage as it scales.

Trainline's shares have risen by more than 11% on Monday, adding to its strong performance so far this year. Over the last 12 months, Trainlineshares have rallied more than 56%.