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Rail distribution specialist Trainline has reported a ‘record’ operating profit of £28 million for the 12 months ending on 28 February 2023, up from a £10 million operating loss in the previous year, following an increase in ticket sales and expansion throughout Europe.
Financial results posted on Thursday (4 May) highlighted an increasing demand for low-carbon travel options as net ticket sales jumped 72 per cent year-on-year to £4.3 billion, which also marked a 16 per cent increase on pre-Covid levels (FY 2020).
Revenue for the year was £327 million, up 74 per cent year-on-year and 25 per cent above pre-pandemic figures, which the London-based company attributed to UK and international consumer net ticket sales.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at £86 million, up £47 million on the previous year and £1 million above FY 2020.
Trainline’s B2B division, Trainline Solutions, reported a 98 per cent year-on-year growth in net ticket sales to £597 million, however this figure is 51 per cent lower than FY 2020, which the company attributed to the “slower” recovery of business travel.
Trainline Solutions revenue was up 66 per cent year-on-year to £110 million and 8 per cent above 2020 levels, partly driven by recovering net ticket sales, but primarily driven by higher internal transaction fees paid from UK consumer and international consumer business segments, with both significantly increasing net transactions, according to the company.
The company launched a new B2B online booking portal, Platform One, in June 2022 as part of its strategy to attract more corporate business and also signed deals with leading TMCs such as CWT, Agiito and CTM.
Following strong growth and a positive start to the current fiscal year, Trainline CEO Jody Ford expects growth to continue.
“Trainline is building great momentum, delivering a record operating performance this year, selling c.200 million train tickets across Europe, and expecting further strong growth in the year ahead,” he said.
“With the arrival of carrier competition in Europe, we are positioning ourselves as the aggregator of choice and this has helped international consumer become a €1 billion net ticket sales business,” Ford added.
The positive result follows strong growth in Spain, with a four-fold increase in net ticket sales following the liberalisation of Spain’s railways in 2021, as well as growing brand awareness and customer acquisition in Italy, where net ticket sales have tripled since 2020 following a recent deal with Italian high-speed train operator Italo.
The online rail ticket seller also noted strong growth in demand from US-inbound customers, while UK consumer net ticket sales increased 55 per cent year-on-year to £2.8 billion. The company attributed this growth to the “continued recovery” in passenger volume and a “significant step up” in industry e-ticket usage (43 per cent of industry sales in FY2023 versus 21 per cent in FY2020).
However, the business faced “temporary headwinds” caused by the ongoing rail strikes in the UK, with an average gross sales impact per strike day of between £5 million and £6 million.
Trainline expects net ticket sales and revenue growth in the range of between 13 per cent and 22 per cent for the 2024 financial year.
“With trains emitting at least 70 per cent less Co2 than cars and planes, sustainability is rail’s superpower to attract new customers and create long-term industry growth,” Ford said.
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