Shares in Trainline (TRN) were up nearly 10% to 288p in morning trading as the post-pandemic recovery continued for the ticketing platform across core markets.

In contrast, year-to-date Trainline shares are down over 16%.

The company reported a 23% increase in group net ticket sales to £2.6 billion and a 19% increase in revenue to £197 million for the six months ending 31 August 2023.

Operating cashflow was up 166% to £77 million and the company achieved the status of ‘Europe’s number one most downloaded rail travel app.’

Trainline is now guiding to the ‘upper end of the range for full year 2024’.

WHAT DOES TRAINLINE DO?

Trainline operates across three business segments: UK Consumer, International, which sells rail and coach tickets on behalf of primarily European rail and coach carriers; and Trainline Solutions, which provides rail and coach booking solutions for small businesses, large corporate businesses and travel management companies in the UK.

The company completed its IPO (initial public offering) in June 2019 and has a current market cap of £1.36 billion.

DRIVE TO E-TICKETS

The company noted that there had been a significant shift to e-tickets from customers with industry penetration in the UK increasing to 46% compared to 43% in the full year to 28 February 2023.

There was also considerable success in Europe with consumer awareness of the Trainline brand almost doubling in Spain and Italy 12-18 months after brand campaigns launched. 

Ongoing infrastructure investment and increasing carrier competition in Spain and Italy also helped Trainline.

Mobile app sales from the International Consumer division continued to be a growth area for Trainline in the first half and going forward, and it offset slower web sales.

ANALYSTS UPBEAT

‘Trainline appears well placed to continue the good momentum that has been experienced during the first half, and as such management is now guided towards the top end of range;  net ticket sales growth range is now between 17-22%, revenue growth between 15-20% and adjusted EBITDA (earnings before interest taxation depreciation and amortisation) 2.15%-2.25% of net ticket sales.

‘This leaves our revenue at the lower end of this new range, 15% to £376m, (implying just 10% need for the second half), and adjusted EBITDA as % of net ticket sales of 2.19% (£110m) for full year 2024,’ says analysts Katie Cousins and Greg Johnson at Shore Capital.

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