Trainline has recently revealed a remarkable surge in operating profit, stating that it exceeded 100 percent growth in the previous year, primarily fueled by strong ticket sales. The company's operating profit doubled from £28 million in 2023 to £56 million in the 12 months leading up to 29 February. This increase was attributed to a surge in new ticket sales, which rose by 22 percent to £5.3 billion from £4.3 billion in 2023, contributing to a 21 percent growth in revenue to £397 million.
Trainline proudly announced its position as Europe’s most downloaded rail app during this period, citing significant success in regions like Spain and Italy. Sales growth in these areas witnessed a collective increase of 43 percent, with Spain specifically experiencing a doubling of domestic ticket sales for the second consecutive year. Jody Ford, Trainline’s chief executive, emphasized the company's role as the preferred aggregator both in the UK and internationally, highlighting its success in rapidly expanding markets such as Spain.
Looking forward, Trainline foresees increased competition from new entrant carriers in Italy, France, and the UK, expecting a period of unmatched growth in rail travel. The company also unveiled a new £75 million buyback program after completing its current one, through which £38 million worth of shares have already been repurchased as of April 2024. Trainline predicts net ticket sales growth of 8 to 12 percent and revenue growth ranging from 7 to 11 percent for the year 2025.
Despite Trainline's outstanding performance, some investors have expressed concerns about the potential implications of Labour's proposal to renationalize UK railways. However, analysts like Mark Crouch from eToro remain optimistic about the company's resilience, viewing it as a testament to the private sector's efficiency and innovation. The market has shown confidence in Trainline, evident from a 26 percent surge in the company's shares over the past 12 months, reflecting investor trust in its continued growth prospects.