Trainline Reports Strong Growth in Operating Profit and Ticket Sales
Trainline, the leading European train and coach ticket platform, has announced a significant increase in operating profit, exceeding 100% growth compared to the previous year. This impressive performance was driven by robust ticket sales, according to the company's latest annual results.
The company's operating profit doubled from £28 million in 2023 to £56 million in the 12 months leading up to February 29th, 2024. This growth was fueled by strong European demand and a reduced impact from UK rail strikes. New ticket sales surged by 22% to £5.3 billion, up from £4.3 billion in 2023, contributing to a 21% revenue growth to £397 million.
Trainline's success was particularly evident in Spain and Italy, where sales growth soared by 43% collectively. Spain witnessed a doubling of domestic ticket sales for the second consecutive year, solidifying Trainline's position as the preferred aggregator in the rapidly liberalizing market.
Jody Ford, Trainline's chief executive, highlighted the company's strong performance and its role as a preferred aggregator both in the UK and internationally. He anticipates an era of unparalleled growth in rail travel, driven by the entry of new carriers in Italy, France, and the UK.
In addition to its financial success, Trainline unveiled a new £75 million buyback program following the completion of the existing one. Under the current £50 million program, £38 million worth of shares have already been repurchased as of April 2024.
Looking ahead, Trainline forecasts year-on-year net ticket sales growth of 8 to 12% in 2025, accompanied by revenue growth ranging from 7 to 11%. Despite concerns among investors regarding the potential impact of Labour's proposal to renationalize UK railways, analysts remain optimistic about Trainline's resilience and its ability to adapt to changing market conditions.
Trainline's shares have surged by 26% over the past 12 months, underscoring investor confidence in its continued growth trajectory. The company's strong performance and ambitious plans for the future position it well to capitalize on the growing demand for rail travel in Europe and beyond.