Trainline (LON:TRN) Issues Earnings Results

Trainline (LON:TRN) posted its earnings results on Wednesday. The company reported GBX 13.82 earnings per share for the quarter, Digital Look Earnings reports. Trainline had a net margin of 17.63% and a return on equity of 35.11%. The business had revenue of £233.29 million for the quarter.

Here are the key takeaways from Trainline’s conference call:

• Trainline reported a resilient first half, with net ticket sales broadly flat, adjusted EBITDA up 7% to £100 million and adjusted EPS up 10%. It reiterated full-year guidance and announced a £100 million share buyback.
• International Consumer became profitable for the first time, with all markets profitable in the half, although net ticket sales fell 4% amid weaker travel demand, disruption and more disciplined marketing. Management expects the division to be around break-even for the full year.
• UK Consumer faces continued headwinds from rail operators’ self-preferencing and Project Oval’s expansion, with the remaining rollout expected early next year and an estimated £150 million of net ticket sales still at risk. Management also sees pressure on UK fares continuing into next year.
• Trainline Solutions’ net ticket sales grew 3%, led by international B2B distribution, up 45% on new client wins. The company also highlighted AI-driven service and engineering efficiencies, while noting AI referrals currently account for less than 1% of sales.
• The CMA investigation into booking-fee presentation remains unresolved; Trainline recorded a £3.7 million provision covering potential fines, redress and legal costs, while saying the outcome could differ or be zero. The company is also seeking stronger safeguards to ensure fair competition with the planned GBR retail operation.

Trainline Stock Down 2.3%

Shares of TRN opened at GBX 204.80 on Thursday. The stock has a market capitalization of £690.42 million, a PE ratio of 10.71 and a beta of 0.38. Trainline has a 12 month low of GBX 178 and a 12 month high of GBX 280. The company has a current ratio of 0.63, a quick ratio of 0.52 and a debt-to-equity ratio of 128.17. The firm’s 50 day moving average is GBX 202.97 and its 200-day moving average is GBX 214.64.

Analyst Ratings Changes

A number of equities research analysts have weighed in on TRN shares. Berenberg Bank reaffirmed a “buy” rating and set a GBX 350 price objective on shares of Trainline in a report on Monday, September 14th. Canaccord Genuity Group reduced their price target on shares of Trainline from GBX 333 to GBX 213 and set a “hold” rating on the stock in a research report on Friday, October 23rd. Jefferies Financial Group reaffirmed a “buy” rating and set a GBX 350 price objective on shares of Trainline in a report on Wednesday. Finally, Shore Capital Group reiterated a “buy” rating and issued a GBX 400 target price on shares of Trainline in a research note on Wednesday. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of GBX 367.57.

About Trainline

Trainline’s ambition is to bring together rail, coach and other travel services into one simple mobile experience so travellers can easily find the best prices for their journey and access smart, real-time travel information on the go. By making rail and coach travel easier, our aim is to encourage people all over the world to make more environmentally sustainable travel choices.

As most rail and coach tickets continue to be sold offline at the station, and as customers and governments commit to more environmentally friendly modes of travel, we see significant growth opportunities for Trainline over the long term.