Trainline has reported a significant increase in its operating profits, with growth exceeding 100 per cent last year, driven by strong ticket sales, according to its latest annual results.
The company revealed it had doubled its operating profits from £28m in 2023 to £56m in the 12 months leading up to February 29.
Driven by strong European demand and the reduced impact of UK rail strikes, new ticket sales rose 22 per cent to £5.3 billion, up from £4.3 billion in 2023, contributing to revenue growth of 21 per cent to £397 million. Sterling.
Trainline proudly held the title of the most downloaded rail app in Europe during this period, with notable success stories in Spain and Italy. Sales growth in these regions combined rose by 43 percent, with Spain seeing domestic ticket sales double for the second year in a row.
Jody Ford, CEO of Trainline, praised the company's role as the aggregator of choice in the UK and internationally, highlighting its strong performance in rapidly liberalizing markets such as Spain.
With competition from new entrant airlines expected to intensify in Italy, France and the UK in the near future, Trainline anticipates an era of unprecedented growth in rail travel.
In addition to its financial success, Trainline has unveiled a new £75 million buyback program following the completion of the existing programme. Under the current £50m programme, £38m worth of shares have already been bought back as of April 2024.
Looking ahead, Trainline expects net ticket sales to grow year-over-year by 8 to 12 percent in 2025, accompanied by revenue growth of 7 to 11 percent.
Despite its excellent performance, concerns remain among investors about the potential impact of Labour's proposal to renationalise railways in the UK. However, analysts like eToro's Mark Crouch remain bullish on Trainline's resilience, viewing it as evidence of efficiency and innovation fostered by the private sector.
Trainline shares have risen 26 percent over the past 12 months, underscoring investor confidence in its continued growth trajectory.
