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Highlights
- Revenue and Ticket Sales Growth: Trainline reports a 17% YoY revenue increase to £229 million and a 14% rise in net ticket sales to £3.0 billion in H1 FY2025.
- EBITDA Surge: Adjusted EBITDA grew by 44% to £82 million, reflecting strong operating leverage.
- Upgraded Guidance: Trainline now expects FY2025 ticket sales growth between 12% and 14%, and revenue growth of 11% to 13%.
Trainline plc (LSE:TRN) has revised its FY2025 financial guidance upward, following a strong performance in the first half of the fiscal year. The online rail and coach ticketing platform, which initially set its FY2025 guidance in May 2024 and improved it further in September 2024, has seen continued momentum into the second half of the year. This has prompted the company to raise its outlook for full-year performance, with further details expected in its H1 FY2025 results announcement on November 7, 2024.
Financial Highlights
For the first half of FY2025, Trainline reported impressive growth, with net ticket sales rising by 14% year-on-year (YoY) to £3.0 billion. This increase highlights the company’s success in expanding its customer base and benefiting from higher travel demand. Revenue also saw a significant boost, increasing 17% YoY to £229 million.
One of the standout metrics from Trainline’s performance is its adjusted EBITDA, which grew by 44% to £82 million. This figure reflects the company’s ability to leverage its operational scale effectively, leading to improved profitability as it continues to grow. Trainline also recorded operating free cash flow of £100 million, further strengthening its financial position. The company’s leverage ratio decreased to 0.2x adjusted last twelve months (LTM) EBITDA, down from 0.4x at the same time last year, underscoring its focus on maintaining a robust balance sheet.
Revised Guidance for FY2025
Off the back of its strong H1 performance and a positive start to the second half, Trainline has revised its full-year guidance for FY2025 upwards:
- Net ticket sales are now expected to grow between 12% and 14% YoY, compared to the previous guidance of 8% to 12% growth.
- Revenue growth is projected to be between 11% and 13% YoY, up from the earlier guidance of 7% to 11%.
- Adjusted EBITDA is anticipated to be around 2.6% of net ticket sales, slightly higher than the previous forecast of exceeding 2.5%.
The company attributes this upgraded outlook to its ability to harness operating leverage more efficiently as it scales, resulting in enhanced profitability.
Outlook
Trainline’s management remains optimistic about the company’s prospects for the rest of FY2025, especially as it continues to benefit from higher demand for rail and coach travel across its key markets. The company’s strong cash flow generation and reduced leverage position it well for future growth opportunities, while its revised guidance suggests that Trainline is on track to surpass its earlier financial expectations.
