Trainline shares rose on Friday after it reported it had doubled its profits in the past year and is now Europe’s most downloaded rail app.
The FTSE-250 listed company reported that its operating profit rose from £28m to £56m in the year to the end of February.
Net ticket sales increased 22 percent year-on-year to £5.3 billion, due to strong demand in Europe and a slowdown in the UK rail strikes, which saw revenues rise 21 percent to £397 million.
Ticket to ride: Shares of Trainline soared on Friday after doubling profits last year
Shares in Trainline rose 8.3 percent to 326.2 cents on Friday, bringing the total gain over the past year to 36 percent.
The majority of Trainline’s revenue came from Britain, with net ticket sales up 23 percent year-on-year at £3.5 billion.
However, growth in Spain and Italy has helped boost international business growth by 14 percent to £1 billion over the past year.
Jody Ford, CEO of Trainline, said: “Competition from new entrants in transport is revolutionizing rail transport in Europe as more customers benefit from greater choice, lower prices and the opportunity to choose greener travel.
“We are becoming the aggregator of choice in the UK and internationally, delivering strong growth, especially in the fastest liberalizing markets such as Spain.
‘With four carrier brands competing on our high-speed rail network, we doubled domestic ticket sales in Spain for the second consecutive year and significantly increased our market share on the top routes.
‘With competition between new entrants in Italy, France and Britain set to increase in the coming years, the opportunities to create a golden age for rail transport increase.’
Trainline also announced a new £75 million share buyback programme, which will commence once the existing program ends.
Trainline said £38 million worth of shares had been bought back under the existing £50 million programme.
Mark Crouch, analyst at investment platform eToro, said: ‘Trainline remains firmly on track to exceed growth expectations and now boasts the title of Europe’s most downloaded rail app. Shareholders will be buoyed by news of a further £75m of buybacks, on top of the £50m already in motion.
‘Investors will be hoping that the company’s momentum is not derailed following Labour’s recent announcement that they plan to renationalise Britain’s railways.
‘At this stage it is nothing more than a headline-grabbing slogan, but uncertainty could spread further if this becomes a reality.’
Trainline received a boost in late 2023 after the government confirmed it would scrap plans for a ‘Great British Railways’ ticketing website and app.
On Friday, Trainline told shareholders they had received assurances from the Labor Party that they had no plans to revive the national retail website and app.