12th Mar 2020 08:54
(Alliance News) - Trainline PLC on Thursday said its revenue increase in its recently ended financial year was at the top end of guidance but added that it is assessing future guidance amid the spread of covid-19.
In the year ended February 29, revenue rose 24% to GBP261 million, the operator of the eponymous online transport ticket sales platform said. It expected revenue growth between the low to mid-20% range.
UK Consumer revenue alone was 30% higher at GBP178 million, Trainline added, with the International unit posting growth of 79% to GBP26 million.
Net ticket sales were up 17% to GBP3.73 billion, helped by growth of 24% to GBP2.05 billion in the UK.
Its International unit was hurt by a rail strike in France, which ran for 46 days in succession, which Trainline said is the longest ever continuous stretch of industrial action in the French rail market.
Trainline explained: "The strike significantly impacted French net ticket sales in the fourth quarter, though outside of France International growth remained strong.
Net ticket sales in France recovered in February, delivering overall growth in International net ticket sales of 47% in the month (excluding foreign exchange impact). This recovery in International net ticket sales was partially impacted by the coronavirus outbreak in Italy towards the end of the month."
Due to the contagion, which was on Wednesday officially declared a pandemic by the World Health Organization, Trainline said it has seen "softened" trading in Italy during the month of February.
Outside of China, Italy is one of the worst countries hit by the virus.
"UK demand has remained more resilient, although growth has slowed particularly from inbound travellers. The covid-19 situation continues to evolve and at this time its ongoing impact is difficult to fully assess. As you would expect, the group is monitoring the situation closely and will continue to take mitigating actions as appropriate," Trainline added.
The company said it will have "grater visibility" in relation to the full impact of the virus on May 7. Until then, it will not issue any guidance for financial 2021.
For 2020, it expects adjusted earnings before interest, tax, depreciation and amortisation between GBP82 million and GBP86 million, "ahead of our expectations at the IPO". Trainline floated back in June.
Shares were 13% lower at 338.50 pence each, making it one of the worst performers on the FTSE 250 index in early trade on Thursday morning.
By Eric Cunha; [email protected]
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