Interim profits rocket at Trainline, shares spark

(Sharecast News) - Trainline posted a surge in half-year profits and revenues on Thursday, after ticket sales across the UK and Europe steamed ahead. The ticket booking app said net ticket sales in the six months to 31 August jumped 14% to £3bn, lifting revenues 17% to £229m, both on a constant currency basis.

Adjusted earnings before interest, tax, depreciation and amortisation strengthened 44% to £82m, while operating profits surged 117% to £49m.

The group, which operates across mainland Europe as well as the UK, said it had seen strong growth across the business.

Jody Ford, chief executive, said: "In Spain, we have more than doubled our share on routes with carrier competition, including Madrid-Valencia, where we account for one out of every six transactions.

"In the UK, as the number one travel app our focus remains on partnering with industry, encouraging the adoption of rail and digital ticketing, and supporting the government's commitment to passenger-focused digital innovation."

Looking ahead, Trainline expects full-year net ticket sales to grow by 12% and 14%, while annual revenues are anticipated to grow by between 11% and 13%.

It revised the guidance for the second time this year in late October, after sales grew by more than expected. Trainline had previously forecast net sales of between 8% and 12%.

As at 1030 GMT, shares in the FTSE 250 firm were up 4% at 412.2p.

Shore Capital, which has a 'buy' rating on the stock, said: "We believe Trainline is well-positioned to grow from structural change with UK rail, has a market share opportunity throughout Europe and is underpinned by a leading technology platform with a large coverage of the rail network and both consumer and business-to-business capabilities.

"The current valuation...does not fully reflect this potential in our view, and our fair values continues to see over 25% upside versus today's share price."