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The Markets
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Leisure, gaming and gambling

Trainline shares surge as earnings guidance hiked and £150m buyback added

Trainline PLC (LSE:TRN) reported robust first-half trading, raising its profitability guidance and unveiling a new £150 million share buyback programme.

Group net ticket sales rose 8% to £3.2 billion in the six months to 31 August, tracking towards the upper end of full-year guidance for growth between 6% and 9%.

Group revenue came in at £235 million, up 2% and also towards the upper end of its full-year guidance range of 0-3%.

UK consumer ticket sales rose 8% to £2.1 billion, supported by leisure demand and commuter market recovery, while international consumer sales were up 2% to £594 million, with growth in European high-speed routes offsetting weaker foreign travel sales.

Trainline Solutions, which provides digital ticketing services for travel management companies and rail carriers, delivered net sales of £529 million, up 18%, with B2B distribution the fastest-growing segment.

The FTSE 250 group said it now expects EBITDA to grow at the top end of its 6% to 9% guidance range for the full-year, reflecting operating leverage and cost optimisation.

Chief executive Jody Ford said the first half had been a "robust performance" as "rail liberalisation in Europe continues to demonstrate the value Trainline brings as the preeminent domestic aggregator", pointing to competition in southeast France has driven Q2 sales growth of 34%.

He said the £150 million share buyback programme to begin once the current £75 million programme comes to an end, with £71 million having been bought back so far.

Shares in Trainline jumped over 9% to 284p.

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