(Alliance News) - Trainline PLC on Thursday unveiled a GBP50 million share buyback, after reporting higher ticket sales and revenue in the first half of its financial year.
Shares in Trainline were up 13% to 278.80 pence each in London on Thursday morning.
The London-based online rail ticket seller reported faster-than-expected growth in the first half of its financial year.
In six months that ended August 31, total net ticket sales jumped 23% year-on-year to GBP2.65 billion, driving revenue up 19% to GBP197 million from GBP165 million.
UK consumer revenue jumped 16% to GBP102 million, International Consumer revenue rose 26% to GBP30 million, and Trainline Solutions revenue surged 23% to GBP65 million.
Trainline reconfirmed guidance for the financial year as a whole. It expects annual net ticket sales growth of between 13% and 22% in financial 2024, and revenue growth between 13% and 22%.
The company also announced a new capital allocation framework, and launched a share buyback of up to GBP50.0 million to take place over the next 12 months.
"Trainline's primary use of capital is to invest behind its strategic priorities - including enhancing the customer experience and building demand for rail travel - to drive organic growth and deliver attractive and sustainable rates of return. The group may supplement that with inorganic investment, should it help accelerate delivery of the group's strategic growth priorities," it explained.
Trainline added that it will also continue to manage debt leverage.
Chief Executive Jody Ford said: "Our performance in the first half of the year shows continued strong growth - with net ticket sales and revenues increasing across the UK and Europe. As a leading home-grown UK tech company, we make it easier for customers across the globe to find and book the best value domestic and cross-border rail tickets, encouraging them to make sustainable choices and reduce their carbon footprint."
Trainline will release its full interim results on November 2.
By Sophie Rose, Alliance News reporter
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Trainline (TRN)