Online ticketing firm Trainline believes more people will be attracted to the “greener choice” of rail travel amid increased competition in services across Europe.
The forecast came as the company saw a 23% rise in net ticket sales to £2.6 billion in the six months to August 30, including £1.7 billion in the UK.
This helped deliver a half year operating profit up 36% year-on-year to £23 million and improved adjusted earnings [ebitda] of £57 million, up by 26%.
Profit after tax was up by £1.4 million year-on-year to £14 million, with its Trainline Solutions arm seeing net ticket sales up by 38% to £378 million, helped by a continuing recovery in UK business travel
Trainline, which claims to be Europe’s top downloaded rail travel app, expects annual ticket sales growth of between 17% and 22%.
The company said: “Rail industry passenger numbers have almost fully recovered following Covid-19 across our core markets.
“Whilst this was not without some headwinds, including industrial action in the UK and broader macroeconomic uncertainty, we expect Trainline to continue growing strongly into the second half of the year.”
Chief executive Jody Ford added: “Our growth over the last six months reflects our focus on continually innovating and improving the customer experience of purchasing digital rail tickets. The value, ease, and convenience we provide are just some of the reasons we are Europe’s #1 most downloaded rail travel app.
“In recent weeks we have seen several exciting announcements around the arrival and growth of new rail carriers, which could mean more customers in the UK, in Europe and those crossing the Channel reap the benefits of increased carrier competition.
“These include improved value and choice, encouraging more people to make the greener choice of rail travel. Our customers in Spain and Italy already enjoy these benefits, and we believe more should have the opportunity to do so.”
Commenting on the update, Dominic Richardson, rail partner at international law firm Gowling WLG, said: “Like many businesses, diversifying its revenue streams will be key to ensuring longevity for the digital rail and coach technology platform.
“By providing white-label technology solutions to train operators, this also helps the company expand into other international regions. The company’s technology focus also means it can benefit from more tickets being booked through its app as consumers move away from paper tickets.
“But, there is strong competition emerging in this area looking to take advantage of the sector’s failings, so Trainline will need to establish itself as the industry leader to continue reaping the rewards.
“What’s more, the effect of strikes and rail ticket price inflation over the past year has impacted on the total passenger numbers travelling by rail, making the competition ever more fierce.
“But with plans to expand within Europe, the company will be confident it can deliver the technology and the services needed to continue driving high growth.”