Trainline profits surge amid record sales as firm braces for UK rail shake-up
The ticketing company benefited from fewer train strikes in 2024 and more sales of digital travel passes than the previous year.
Trainline profits surged last year after it made a record amount of sales, as the company benefited from the growing popularity of digital tickets and fewer rail strikes.
The London-listed firm reported an £86 million operating profit for the year to February 28, up 56% compared with the previous year.
It made £5.9 billion from selling tickets, 12% up from the year before, mainly driven by fast sales growth in the UK and expansion in European countries.
Trainline makes most of its money by taking a commission on ticket sales for coach and rail journeys, and benefited from fewer train strikes last year than in 2023.
It also cited the growing popularity of digital tickets stored on mobile phones versus paper tickets for its improving sales.
But the company faces a potential crisis in its main UK market in the coming years, amid competition from a Government-owned train operator called Great British Railways.
Trainline has grown quickly in recent years as a way to help customers find tickets in a rail system with scores of private sector companies, sometimes operating on the same route.
Shares in the company have fallen by nearly one third since the start of the year, amid worries that Labour’s proposed simplification of the system to make it more consumer-friendly could hurt Trainline’s dominant position in the market.
The company said on Wednesday that it is “taking an increasingly assertive stance with the Government to deliver on its commitment to deliver a fair, open and competitive future retail market”.
The growing sales came mainly from within the UK, where income grew 13% to £3.9 billion, while international ticket sales increased 4% to £1.1 billion.
In Spain, it saw sales rise 41% while its business-to-business offering also put in a strong showing, with 60% growth.
“Our sustained investment in tech innovation over the last three decades is delivering for customers, driving industry growth and is reflected in our performance,” said chief executive Jody Ford.
“Spain offers a powerful blueprint for Europe, where net ticket sales have nearly tripled in two years,” he added.
“In the UK we remain the number one travel app and continue to innovate, including leveraging AI (artificial intelligence), to shift more people towards greener, digital-first rail travel, which now represents over 50% of industry ticket sales.”
