Trainline profits surge on competition in Italy Spain
Online rail ticket selling platform on Friday reported better-than-expected revenue along with a sharp jump in annual sales and profits, driven by competition for passengers in Spain and Italy.
The company also unveiled a £75m share buyback and forecast year-on-year net ticket sales growth of 8 - 12 % in 2025, with revenue growth of 7 - 11%.
Revenue was up 21% to £397mfor the 12 months to February 29, while ticket sales rose 22% to £5.3bn and adjusted core profit hit £122m, an increase of 42%.
Operating profit doubled to £56m.
Combined growth across Italy and Spain was up 43%, while domestic ticket sales in Spain have more than doubled for two consecutive years for the group, helping overall sales in Europe hit £1bn.
In the UK, net ticket sales were £3.5bn, up 23% reflecting continued rail market recovery, as well as the industry experiencing five fewer strikes than in the prior year at 25 "which were also less severe in their impact", Trainline said.
Net ticket sales growth also reflected more people switching to digital tickets - with industry e-ticket penetration at 47% of ticket sales, up from 43%, while long-distance and leisure travel remained strong.
"New entrant carrier competition is revolutionising rail in Europe as more customers benefit from greater choice, lower prices and the opportunity to choose greener travel," said chief executive Jody Ford.
"We are becoming the aggregator of choice in the UK and internationally and are delivering strong growth, particularly in those markets liberalising fastest such as Spain.
"With new entrant carrier competition set to ramp up in Italy, France and the UK in the coming years, the opportunity grows to create a golden age of rail travel."
Reporting by Frank Prenesti for Sharecast.com
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