(Alliance News) - Rail ticket selling platform Trainline PLC on Thursday said it "outperformed expectations" in its recently ended financial year, with revenue growth that was higher than anticipated.
Trainline shares were 12% higher at 367.20 pence each in London on Thursday morning, making it the best FTSE 250 index performer.
Revenue in the financial year that ended February 29 rose 21% to GBP397 million from GBP327 million. Trainline previously had guided for a rise between 15% and 20%.
Net ticket sales were 22% higher at GBP5.30 billion, at the top end of its growth outlook range. Net tickets sales were GBP4.32 billion in financial 2023.
Adjusted earnings before interest, tax, depreciation and amortisation are expected to land at around 2.3% of net ticket sales above its previous guidance range of 2.2% to 2.3%. That would suggest adjusted Ebitda of about GBP122 million for 2023, which would be up 42% from GBP86 million in 2022. Trainline said this outcome is due to "better-than-expected revenue growth and cost discipline".
By division, revenue in the UK Consumer arm surged 21% on-year, while in International Consumer, it climbed 17%. Aside from the UK, Trainline also operates in nations including France, Italy, Germany, and Spain.
In the Trainline Solutions rail platform technology arm, serving rail carriers, travel sellers and businesses, revenue was 23% higher.
Chief Executive Jody Ford said: "Trainline is a home-grown British tech success that has scaled beyond domestic borders to become Europe's most downloaded rail app. We outperformed expectations this year, growing strongly in the UK and across the continent, with International Consumer net ticket sales of more than GBP1 billion.
"Our growth was fastest in Spanish domestic travel, which doubled year-on-year as we position ourselves as the aggregator of choice. Trainline's market share continues to rise on key routes like Madrid - Barcelona, which is now our third most popular route across all countries, including the UK."
Shares in Trainline have surged 45% over the past 12 months and have risen roughly 28% since mid-December, when the UK government announced it will no longer pursue creating a ticket retailing website and app.
The proposal for a Great British Railways app was first mooted in May 2021 as part of a white paper. GBR is a planned state-owned body that will oversee UK rail transport.
It was intended for the new body to sell tickets via a website and app, which would have potentially put it in competition with Trainline.
Trainline will announce its full annual results on May 3.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Trainline (TRN)