Despite announcing record full-year sales and a £75m buyback programme, shares in Trainline plummeted on Thursday.
A robust set of results failed to alleviate investor concerns about the introduction of a state-owned competitor ticketing app in the º£½ÇÊÓƵ, leading to the stock falling more than 13 per cent in early trading, as reported by .
This occurred even though net ticket sales rose by 12 per cent to a record £5.9bn year-on-year, aligning with previously upgraded guidance but at the lower end. The increase was fuelled by Trainline's º£½ÇÊÓƵ operations, where sales increased 13 per cent to £3.9bn.
International ticket sales climbed four per cent to £1.1bn, boosted by a strong performance from its Spanish division. On Thursday, Trainline revealed a new share repurchase scheme worth up to £75m.
It already has an ongoing buyback programme of up to eight per cent of its issued share capital. "With record net ticket sales for the third year in a row, we saw growth in consumer sales in the º£½ÇÊÓƵ of 13 per cent and in Spain of 41 per cent, while international B2B sales through our Global API increased by about 60 per cent," said Jody Ford, Chief Executive.
"Our decades-long experience in delivering ease, choice and value for our 27m customers sets us apart from the competition, be it global tech players or national incumbents."
The CEO of Trainline has emphasised the potential for growth within the º£½ÇÊÓƵ and Europe, underpinning the importance of market conditions: "There is still so much to be achieved in the º£½ÇÊÓƵ and Europe with the critical foundation being open, fair and competitive markets. Rail is set to surge across Europe and Trainline will be at the centre of it."
Despite this optimism, Trainline shares have suffered on the stock market this year, even in the face of strong financial performance. Since January, the company's share price has experienced a significant decline of over 30 per cent, which can be largely attributed to the introduction of a competing state ticket app by the º£½ÇÊÓƵ government earlier in the year.
