Train ticket sales exceed £3 billion as more Brits book online
- Trainline reported that net ticket sales grew by 14% in the six months to August
- The percentage of UK train tickets bought over the internet has risen to 51%
Trainline scored £3 billion in net ticket revenue in the first half of the year thanks to a rising share of Brits booking train journeys online.
Britain’s largest train ticketing app reported that net ticket sales grew 14 percent year-on-year at constant exchange rates in the six months ended August.
About two-thirds of all sales took place in Britain, where the percentage of train tickets bought over the internet rose by five percentage points to 51 percent.
Use your phone: Trainline has achieved £3 billion in net ticket revenue in the first half of the year, as the share of Brits booking train journeys online continues to increase
Trainline also said its domestic operations benefited from fewer strikes and the “continued normalisation” of the UK rail sector since the easing of Covid-related restrictions.
Meanwhile, ticket sales internationally rose 6 percent to £583 million, partly thanks to strong performances in Spain and Italy, and 19 percent to £449 million in the B2B arm.
Higher ticket demand, combined with a focus on acquiring non-commission income such as travel insurance, helped Trainline’s revenue grow 17 percent to £229 million.
However, this was surpassed by a fifth increase in gross profit to £181m, which the company attributed to a fall in the fulfillment fee it pays to the UK rail sector.
The London-based company’s results come a week after it upgraded its full-year outlook for the second time in less than two months.
Trainline predicts net ticket sales will rise 12 to 14 percent this year, after previously expecting growth at the high end of an 8 to 12 percent range.
In addition, the group expects total revenue to increase by 11 to 13 percent, and adjusted profit to be approximately 2.6 percent of net ticket sales.
“We are proud that our technology-focused investment continues to deliver results for customers and industry across the UK and Europe,” said Jody Ford, CEO of Trainline.
Despite the excellent performance, the company announced it plans to cut a number of jobs as part of plans to make around £12 million in savings.
Adam Vettese, market analyst at eToro, said: “Going forward, as more companies ask their employees to return to the office, Trainline will also benefit from the recovery of the commuter market, which will only further strengthen its position.
“Shares have already risen 30 percent since September and investors will expect a return to previous highs in the coming months.”
Trainline shares were 5.7 percent higher at 419.2p by mid-Thursday afternoon, making them one of the top gainers on the FTSE 250 Index.
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