Trainline jumps after ‘strong growth’ forecast

div classBodysc17zpet90 cdBBJodivpLONDON Reuters – British rail ticketing company Trainline forecast “strong growth” this year, with revenue rising above prepandemic levels to 280310 million pounds, and core earnings of 7075 million pounds, both ahead of market expectations.p

pShares in Trainline, which saw sales collapse in 2020 when COVID19 impacted travel, jumped 13 to a sixmonth high of 313 pence on Thursday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pChief Executive Jody Ford said the positive outlook reflected a focus on supporting the rail industrys recovery, as well as making rail travel easier and better value.p

pAnalysts at Peel Hunt said guidance for the year to endFebruary 2023 was, at the midpoint, 8 ahead of its revenue estimates and 7 ahead of its core earnings forecasts.p

p“After two years of very difficult times for Trainline including the pandemic and the regulatory overhang, this is the first time that it feels it is back on the front foot again,” they said.p

pFord said Trainline was benefiting from new patterns of hybrid working in its core British market, with commuters buying fewer season tickets and instead using its app to buy singles, returns and other flexible ticket options.p

pThe company was also investing in international markets, where there was a “huge amount of headroom” with new competition between operators on highspeed routes in France, Italy and Spain.p

pTrainline suffered a blow a year ago when the British government published a new rail plan, which included proposals for a central ticket retailer.p

pFord said he anticipated there would be a procurement exercise to build and operate the new app, and after engaging in the preliminary stages, Trainline was ready to participate in the next stages.p

pThe company reported adjusted earnings of 39 million pounds 48 million for the year through February, compared with a 25millionpound loss in the prior year. p

p1 0.8086 poundsp

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pp Reporting by Paul Sandle Editing by Bernadette Baump

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