Trainline Ticket Sales Jump as New Carrier Competition ‘Revolutionising Rail in Europe’ 

Rail ticket platform Trainline (LON: TRN) reported its results for the 12 months ended February 29, on Friday, showcasing a significant surge in ticket sales, driven by new entrant carrier competition and robust growth in the European market. 

Net ticket sales soared by 22% year on year to £5.3 billion, hitting the top end of the previous guidance range. This impressive performance fueled a 21% increase in revenue to £397 million, with adjusted EBITDA climbing 42% to £122 million. Furthermore, Trainline's operating profit jumped 101% to £56 million, driven by volume growth and operating leverage.

Trainline has emerged as Europe's most downloaded rail app. It has also facilitated a shift towards digital ticketing in the UK market. Notably, e-ticket penetration rose to 47%, while on-the-day bookings accounted for 66% of UK consumer transactions.

International growth has been particularly noteworthy, with net ticket sales surpassing £1 billion, driven by strong competition in European markets like Spain and Italy. In Spain alone, domestic ticket sales more than doubled for the second consecutive year, highlighting Trainline's increasing market share.

Jody Ford, CEO of Trainline, emphasised the transformative impact of new carrier competition on European rail travel. With the prospect of increased competition in Italy, France, and the UK, Trainline sees ample opportunity to consolidate its position as the preferred aggregator for rail services further.

Looking ahead, Trainline has provided guidance for FY2025, projecting continued growth in ticket sales and revenue. Additionally, the company announced a new £75 million share buyback program, underscoring its commitment to value creation for shareholders. As rail travel evolves, Trainline remains poised to capitalise on emerging opportunities and drive the future of transportation.

In March, Exane BNP Paribas initiated Trainline's stock with an Underperform rating. The bank stated that the UK passenger rail industry is undergoing a “generational shift” that will make Trainline's ecosystem position uncertain. Trainline shares are down over 4% this year.