Trainline increased its guidance for the full year for the second time in just two months, after realizing more revenue than expected from ticket sales.
The online ticket seller stated that it expects net sales to increase by 12 to 14 percent for the year ending February 2025. This is an improvement from its previous estimate of 8 to 12 percent.
The FTSE250 company, which had raised its annual guidance back in September, has now increased its full-year outlook again, citing a “strong” start to the second half.
The company raised its revenue forecast to between 11 and 13 percent, up from the previous expectation of 7 to 11 percent growth. The group will release its half-year results in November. Trainline shares rose 31p or 9.2 percent to 368p at Monday’s closing.
Trainline was acquired in 2015 by KKR for £450million. Virgin Group founded Trainline in 1997. The company is one of only a few remaining technology companies listed on the London Stock Exchange. It was listed at 350p per share in 2019. In 2022, a year marred by rail strikes, the shares fell to a low of 164p. Since then, the stock value has recovered as the company’s sales have improved and has grown in Europe.
In recent months, there has been some nervousness among investors about the possibility of a Labour government plan to nationalise Britain’s Railways. Shareholders fear that this could harm Trainline’s revenue.
The online ticket seller has reported “strong growth” for the first half of this year.
Trainline reported net ticket sales of £3billion during the six-month period ending August. This is up 14% from the same time last year as more people purchased digital tickets. Trainline’s first-half sales were also boosted by a decline in strike days.
The revenues for the six-month period ending in August were £229million, a 17 per cent increase over the same period last year.
The company’s shares have increased by 8 percent since the start of the year, as sales rose. Trainline also saw its international business expand, as revenues from overseas consumers grew to £583 millions in the first six months of this year, an increase of 4 percent compared to the same period of last year.
Trainline sells tickets to UK customers, but also to companies and other countries in Europe. Spain and Italy have seen a rapid growth due to the increasing competition among train companies. The company employs staff in London and Edinburgh, and sells tickets for train and coach travel in over 40 countries.
Katie Cousins is an analyst with Shore Capital. She said that the broker continues to see Trainline “as a dominant player in the UK rail system, set to profit from the increasing demand for digitalisation from consumers.”
She stated that the momentum of the group from the first half seemed to have continued into second half of the financial years.
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