Trainline reports record sales but shares plunge on Great British Rail worries
Investors sold shares amid concerns a national ticketing app could hurt the firm’s current dominant position in the market.
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Your support makes all the difference.Trainline has revealed it made a record amount from ticket sales last year, but its share price plummeted on Thursday amid concerns over Government plans for a rival national ticketing app.
The London-listed firm made £5.9 million from selling tickets in the year ending February, 12% up from the year before but at the bottom end of guidance given in October.
Trainline makes most of its money by taking a commission on ticket sales for coach and rail journeys, and benefitted from fewer train strikes last year than in 2023.
It also cited the growing popularity of digital tickets stored on mobile phones versus paper tickets for its improving sales.
Trainline also announced a £75 million payday for shareholders through a buyback programme.
But it was not enough to assuage concerns over competition from a Government-owned train operator called Great British Railways.
Trainline has grown quickly in recent years as a way to help customers find tickets in a rail system with scores of private sector companies, sometimes operating on the same route.
Shares fell 14% amid worries that Labour’s proposed simplification of the system to make it more consumer-friendly could hurt Trainline’s dominant position in the market.
The growing sales came mainly from within the UK, where income grew 13% to £3.9 billion, while international ticket sales increased 4% to £1.1 billion.
In Spain, it saw sales rise 41% while its business-to-business offering also put in a strong showing, with 60% growth.
“Spain is the market with most widespread carrier competition, which is enabling Trainline to grow quickly in this market,” it said.
Chief executive Jody Ford added: “Our decades-long experience in delivering ease, choice and value for our 27 million customers sets us apart from the competition, be it global tech players or national incumbents.
“There is still so much to be achieved in the UK and Europe, with the critical foundation being open, fair and competitive markets.”