Trainline shares jump as surging ticket sales lift H1 profits by 26%

Rail and coach booking platform Trainline saw double-digit growth across the board in its first half, as it narrowed its full-year guidance towards the upper end of the forecast range.

The stock was up over 6% at 278.6p in early deals on Thursday.

Revenues were up 19% year-on-year in the six months to 31 August at £197m, helped by a 23% jump in net ticket sales to £2.65bn.

The company said this volume growth, along with operating leverage, resulted in adjusted EBITDA surging 26% to £57m.

Meanwhile, operating free cash flow increased 166% to £77m.

Trainline said it is Europe's most downloaded rail travel app and continued its shift to etickets in the first half, with industry penetration in the UK rising to 46%, from 43% at the start of the financial year.

Meanwhile, growth across European markets continues to be strong, with combined net ticket sales in Spain and Italy up 50%.

For the full year ending February 2024, net ticket sales are expected to growth by 17-22% (compared with previous guidance of 13-22%), revenues should increase 15-20% (previously 13-22%) and forecasts of adjusted EBITDA of 2.15-2.25% of net ticket sales has remained unchanged.

"Our growth over the last six months reflects our focus on continually innovating and improving the customer experience of purchasing digital rail tickets," said chief executive Jody Ford.

"In recent weeks we have seen several exciting announcements around the arrival and growth of new rail carriers, which could mean more customers in the UK, in Europe and those crossing the Channel reap the benefits of increased carrier competition. These include improved value and choice, encouraging more people to make the greener choice of rail travel. Our customers in Spain and Italy already enjoy these benefits, and we believe more should have the opportunity to do so."