4th May 2023 12:59
(Alliance News) - Trainline PLC on Thursday reported a sharp earnings hike, as the rail ticketing platform predicts further growth, as it works towards building a head of steam in Europe.
Trainline is plotting being the "aggregator of choice in Europe".
It said group revenue in the year ended February 28 rose 74% to GBP327.1 million, from GBP188.5 million. It swung to a pretax profit of GBP22.1 million from a GBP15.5 million loss the year prior.
Net ticket sales totalled GBP4.32 billion, rising 72% from GBP2.52 billion the year prior, and 16% from pre-virus levels.
"Trainline is building great momentum, delivering a record operating performance this year, selling [around] 200 million train tickets across Europe, and expecting further strong growth in the year ahead," Chief Executive Officer Jody Ford said.
"With the arrival of carrier competition in Europe, we are positioning ourselves as the aggregator of choice and this has helped International Consumer become a EUR1 billion net ticket sales business. Our footprint expansion is particularly evident in Spain, where our sales are now four times higher than before market liberalisation."
Looking to the new financial year, Trainline expects both revenue and net ticket sales to grow between 13% to 22%.
"With its considerable expansion potential into new and existing European markets, it looks like the ticketing provider may just steam ahead to even higher profit growth given management's guidance on profit margin," Edison analyst Russell Pointon commented.
"Benefitting from liberalisation of rail provider markets in countries like Spain, Trainline's European expansion shows that the simplicity of its product is particularly successful in markets where increased choice leads to more complex booking processes."
Trainline shares were up 14% in London at 273.40 pence on Thursday afternoon, by far the best FTSE 250 performer.
By Eric Cunha, Alliance News news editor
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