Trainline Shares Slump as Trading Statement Disappoints Despite Record Net Ticket Sales

Trainline (LON: TRN) shares fell as much as 14% on Thursday, hitting their lowest level since December 2023, as investors reacted negatively to the company's full-year trading update. 

Despite reporting record net ticket sales of £6 billion, the results failed to impress the market.

For the financial year ending 28 February 2025, net ticket sales rose 12% year-on-year, in line with the company’s previously upgraded guidance, but at the low end of the 12-14% range provided. 

Revenue increased by 11% to £442 million, also meeting expectations but again coming in at the low end of the 11-13% guidance range provided in November.

The UK Consumer segment grew 13%, benefiting from the continued shift towards digital tickets and fewer rail strikes. 

However, International Consumer sales rose just 1%, with growth of 4% at constant currency, weighed down by weaker demand in key European markets. 

CEO Jody Ford said Trainline was seeing strong momentum in Spain, with sales up 41% year-on-year, but added that other markets were awaiting greater competition among rail carriers.

Despite the stock drop, Trainline announced a new £75 million share buyback programme, supported by its strong cash generation. 

The company also reaffirmed its commitment to growth in the UK, despite ongoing discussions about the government's planned Great British Rail (GBR) retail platform.

“Trainline already thrives in a competitive environment in the UK, scaling to 18 million customers while building strong brand affinity and a market leading mobile app,” said Trainline.

“GBR's retailing will likely take several years to crystallise, with the precursory establishment of GBR as a governing body only expected to happen by 2027 at the earliest.”