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UK's Trainline H1 revenue falls on lower refund fee, reconfirms full-year outlook

By Reuters News


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


Reuters Recommended Reads

  • Nov 3 - Primark-owner AB Foods forecasts further profit decline as sugar losses deepen

  • Nov 3 - UK supermarket Asda names former Morrisons boss David Potts as CEO

  • Nov 3 - UK government to press Poundland-owner over retailer's future


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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