Trainline PLC (LSE:TRN) pleased the market with news of expectation-beating results on Thursday morning, driven in part by a drop in the number of rail strikes in the UK.
Earlier, the group reported sales of £5.3 billion, which was at the top end of a guided 17% to 22% range. Analysts said the solid results should pave the way for upgrades.
“With the trading update above expectations we expect the results to be well received, with upgrades to consensus estimates,” UBS said in a note.
A 28% jump in UK ticket sales to £1.8 billion was particularly noteworthy, the bank said, though international sales appeared to slow down late in the year.
That said, Stifel noted potential positives outweigh risks in Trainline’s European business, with ticket sales jumping 43% in Spain and Italy.
This was where “carrier competition is most widespread”, Stifel explained, with just 3% growth in France and Germany “reflecting Trainline's decision to pause brand marketing” until such competition arrives.
“After teasing the market with incrementally positive news throughout the year, today’s strong trading update caps off the year,” Peel Hunt analysts said, meanwhile.
“As Trainline hones its go-to-market by targeting liberalised rail lines, increasing brand awareness, and increasing app usage, we see this driving growth in the medium term as markets open up.”
Shares climbed 12.6% to 368.34p.