Trainline PLC (LSE:TRN) batted off the impact of UK rail strikes as it reported a 72% increase in ticket sales and a 74% jump in revenue over the past year, aided by a growing presence overseas.
Some 200mln international ticket sales, equalling £915mln, marked a 125% yearly increase and 95% growth on pre-pandemic figures for Trainline.
Europe in particular offers “significant tailwinds for growth,” the company said. “With the arrival of carrier competition in Europe, we are positioning ourselves as the aggregator of choice.”
Analysts largely agreed too, with AJ Bell’s Russ Mould commenting: “Trainline has broadened its horizons by buying a European expansion pack.
“While it has been bedevilled by strikes in its core UK market, on the continent it is growing rapidly.”
UK ticket sales were higher meanwhile, increasing 55% year on year to £2.8bn, while adjusted pre-tax earnings grew 121% to £86mln, despite a £10mln to £12mln hit from strike action, according to Liberum.
Compared with 2019, before the pandemic slammed the brakes on rail travel, these were up 37% and 1% respectively.
“Our experts point to the company's strong position in the international market, particularly in continental Europe, where rail liberalisation has created a need for a centralised distribution platform,” Third Bridge analyst Sandeep Sharma added.
Analysts did hint the creation of the government body Great British Rail could impact Trainline if a central ticketing hub was set up too, though Mould suggested the plans had “somewhat ground to a halt”.
In light of this, “Trainline must continue to prove it can be more than just a simple ticketing platform by offering innovative features like flagging cost savings,” Mould said.
Liberum tipped the company as a ‘buy’ following the update, pointing to Trainline’s “particularly” positive outlook of 13% to 22% net ticket sales growth for 2024.
Trainline shares soared 15.6% to 276p following the news.