Trainline has upgraded its financial outlook following robust performance into the latter half of the year, with a notable uptick in the demand for digital rail tickets causing its shares to surge by 10.6%.
In an optimistic update, the º£½ÇÊÓÆµ-based rail ticketing platform now anticipates sales growth in the 12 to 14% band, surpassing its earlier predictions of eight to 12%, as reported by .
Revenue expectations have been similarly lifted, aiming for an 11 to 13% increase, marking an uptrend from previous forecasts of seven to 11%.
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"Trainline has delivered strong growth in H1 FY2025 and is increasingly benefiting from operating leverage as it scales," the firm communicated to investors on Monday.
Looking at future profitability, the FTSE 250-listed company predicts that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) will equate to approximately 2.6% of ticket sales revenue.
Enhanced demand for digital ticketing solutions and a reduction in º£½ÇÊÓÆµ rail strikes have allowed Trainline to refine their full-year 2025 projections, initially set out in May 2024 and subsequently updated last month.
The company is poised to reveal comprehensive details of its half-yearly results on 7 November.
For the first semester, Trainline reported that net ticket sales swelled by 14% year-on-year, reaching £3bn, propelling revenue by 17% to £229m, which in turn amplified adjusted EBITDA by an impressive 44% to £82m.
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Within the º£½ÇÊÓÆµ market, the firm saw net ticket sales escalate to £2bn, marking a 15% improvement on a year-by-year basis, largely attributable to increased adoption of digital ticketing formats.
The second upgrade might somewhat alleviate investor concerns about potential rail nationalisation reforms under the new government, which could impact Trainline's profitability.
However, last week it was revealed that ministers are planning to shut down an initiative that permits private train companies in England to earn additional profits if they increase passenger revenue beyond a set level.
Speculation of a competing state-owned ticket operator caused Trainline's shares to nosedive at various times last year.