UK's Trainline H1 revenue falls on lower refund fee, reconfirms full-year outlook
Overview
UK online rail ticketing firm's H1 revenue fell 1% yr/yr, impacted by UK refund fee changes
Adjusted EBITDA for H1 rose 7%, driven by improved international profitability
Company announced new £100 mln share buyback programme
Outlook
Trainline maintains FY2027 net ticket sales guidance at EUR 6.2 bln- EUR 6.45 bln
Company sees FY2027 underlying revenue at EUR 440 mln- EUR 455 mln
Trainline expects FY2027 adjusted EBITDA margin at about 2.9% of net ticket sales
Result Drivers
REFUND POLICY CHANGES - UK revenue fell due to lower refund fee income following industry refund policy changes
INTERNATIONAL PROFITABILITY - Adjusted EBITDA growth was driven by International Consumer segment turning profitable
MARKETING SPEND - Lower marketing costs helped offset higher administrative and legal expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | GBP 233 mln | ||
H1 Adjusted EBITDA | GBP 100 mln | ||
H1 Operating Profit | GBP 64 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy"
Wall Street's median 12-month price target for Trainline PLC is GBp345.00, about 62% above its November 3 closing price of GBp213.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)