Trainline revenues derailed, but cash burn cut

Rail and coach ticket-selling platform Trainline reported a plunge in annual revenues as Covid lockdowns restricted travel, but said it had reduced monthly cash burn.

Group revenues for the financial year to February 28 fell 74% to £67m. Ticket sales slumped to to £783m from £3.72bn a year earlier as refunds for cancelled travel plans also impacted the group.

However, Trainline said monthly cash burn had been cut to around £5m, compared with guidance of £8m - £9m. As a result, the company expects to report an adjusted before interest, tax, depreciation and amortisation of £24m - £27m.

“While the current trading environment remains challenging, vaccine roll-outs and government roadmaps to ease lockdowns are expected to create the conditions necessary for recovery,” Trainline said on Thursday in a trading statement.

“Encouragingly, when lockdowns and restrictions were eased during the Summer months of 2020, leisure and commuter passenger volumes recovered relatively quickly in Trainline's key European markets, while Trainline's UK consumer net ticket sales recovered faster than the market, reflecting an acceleration in the shift to online and digital channels.

UK Consumer net ticket sales of £473m were 23% of prior year, peaking in August between the first and second lockdowns at 46%.

Chief executive Jody Ford said Trainline would “see more customers booking rail travel online and a continued market shift to digital when government lockdown restrictions ease, as we did last summer”.

“Over the year we have kept our foot on the accelerator improving the customer experience, which means we are well positioned to capitalise on this shift to online and digital, and to support rail industry recovery when people start travelling again.”