Trainline shares jump as H1 profits soar

Trainline (LSE: TRN) saw a boost in its share price on Thursday following a robust performance in the first half of its fiscal year. The online rail ticket seller reported a substantial increase in revenue and profit, triggering an 8.2% surge in its stock value. The company also adjusted its full-year guidance, narrowing the upper limit and raising the lower end of its revenue growth projections.

Trainline’s net ticket sales saw a 23% jump, reaching £2.65 billion in the six months ended August 31, compared to £2.16 billion in the previous year. The revenue climbed by 19% to £197 million, up from £165 million, demonstrating the company’s resilience and adaptability amid the challenges posed by the ongoing Covid-19 pandemic.

The pre-tax profit figures showcased a substantial growth, rising to £18.1 million from £13.6 million, underscoring Trainline’s effective strategies in navigating the difficult market enviroment. The company attributed its impressive performance to a combination of increased passenger numbers, improved customer experience, and efficient operational management.

Despite lingering uncertainties stemming from industrial action and broader macroeconomic factors, Trainline remains optimistic about the future. The company highlighted that passenger numbers have almost fully recovered from the pandemic-induced slowdown, and it anticipates sustained growth in the second half of the fiscal year.

Trainline’s Chief Executive, Jody Ford, expressed confidence in the company’s trajectory, stating, “Our growth over the last six months reflects our focus on continually innovating and improving the customer experience of purchasing digital rail tickets.” Ford emphasized Trainline’s dedication to enhancing customer satisfaction and streamlining the ticket purchasing process.

Furthermore, Trainline announced a positive outlook for the upcoming fiscal year, tightening its guidance to the upper end of its range for 2024. The company now expects its revenue growth for the full year to be between 15% and 20%, compared to the previous range of 13% to 22%. Similarly, net ticket sales are projected to grow between 17% and 22%, up from the earlier estimate of 13% to 22%.

Trainline’s optimism is also fueled by recent developments in the rail industry. Ford noted, “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 developments, including improved value and choice, are expected to encourage more individuals to opt for greener travel choices, boosting the demand for rail services.