- Trainline predicts that net ticket sales will increase between 17% and 22% in the current financial year
- The London firm has continued to benefit from the recovery of rail transport
- Domestic sales of consumer banknotes rose to £1.71bn during the six months to August
Trainline expects ticket transactions on its platform to be at the top end of annual forecasts following a strong performance in the first half.
Britain’s largest online ticketing app forecasts net ticket sales will rise between 17 and 22 per cent in the current financial year, having previously forecast just 13 per cent.
Revenue is also forecast to grow between 15 and 20 percent, while adjusted earnings before unpleasantries are expected to be between 2.15 and 2.25 percent of ticket sales.
Forecast: Trainline predicts its net ticket sales will increase between 17 and 22 percent this financial year
The London-based company has continued to benefit from a resurgence in train travel amid the absence of Covid-related restrictions and people buying more tickets online, especially in the UK.
Domestic consumer ticket purchases rose by around a fifth to £1.71bn in the six months to August, despite numerous days of strike action by railway workers causing millions in sales losses. .
Outside the UK, ticket sales increased by more than £100 million to £558 million, which Trainline attributed in part to brand campaigns driving demand in Spain and Italy.
Spanish trade was also supported by the recent liberalization of its high-speed rail network, the second largest in the world after China.
By contrast, the company said trade in France was slowed by the decision to pause trading ahead of the liberalization of its railways in the country.
The European Union has led the initiative to relax state control of railway lines in Europe as part of its Fourth railway packagewhose objective is to reduce public subsidies and improve the competitiveness of the railway sector.
Trainline said increasing competition among carriers puts it in a good position to become the “aggregator of choice” and boost its global business in the medium term.
It noted that rail passenger numbers had “almost fully recovered” to pre-pandemic volumes in the company’s core markets despite strikes in Britain and widespread economic uncertainty.
Jody Ford, CEO of Trainline, said: “Our growth over the last six months reflects our focus on continually innovating and improving the customer experience when purchasing digital train tickets.”
After the semi-annual commercial update, Train line actions rose 10.1 per cent to 289.2p in early Thursday afternoon, making it one of the five biggest risers on the FTSE 250 index.
Gowling WLG rail partner Dominic Richardson said the group’s technology approach means it can benefit from more tickets being booked through its app as consumers move away from paper tickets.
“However, there is strong competition emerging in this area seeking to take advantage of the sector’s failings, so Trainline will need to establish itself as an industry leader to continue reaping the rewards.”