In This Article:
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Net Ticket Sales: Increased 14% to 3 billion.
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Revenue: Grew 17% to 229 million.
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Adjusted EBITDA: Rose 44% to 82 million.
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UK Consumer Net Ticket Sales: Grew 15% to 2 billion.
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International Net Ticket Sales: Increased 6% to 583 million.
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Trainline Solutions Net Ticket Sales: Grew 19% to 449 million.
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Gross Profit: Increased 20% to 181 million.
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Marketing Costs: Declined 9% to 34 million.
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Other Admin Costs: Increased 15% to 65 million.
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Operating Free Cash Flow: 100 million.
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Leverage: Reduced to 0.2 times EBITDA.
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Share Buyback: 46 million of shares repurchased.
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Guidance Update: Net ticket sales growth expected at 12-14%, revenue growth at 11-13%, and adjusted EBITDA margin at 2.6%.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Trainline PLC (TNLIF) reported a 44% increase in adjusted EBITDA to 82 million, driven by strong financial performance and operating leverage.
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The company achieved a 14% increase in net ticket sales and a 17% rise in revenue, surpassing previous guidance.
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Trainline PLC (TNLIF) is Europe's number one rail app, with its app being downloaded almost twice as often as its closest competitors.
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The company has successfully expanded its market share in the UK commuter segment to 24% and increased e-ticket penetration to 51%.
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Trainline PLC (TNLIF) is effectively monetizing customer relationships, with non-commission revenue from ancillary products like hotels and travel insurance tripling year-on-year.
Negative Points
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The company faces challenges in France and Germany, where net ticket sales growth has slowed due to paused brand marketing and changes in Google search engine results.
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There is a potential headwind from the delayed Transport for London's project oval expansion, now expected to impact in FY26.
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The UK market faces a reduction in net commissions, which could impact revenue growth despite operating leverage benefits.
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Trainline PLC (TNLIF) is experiencing a natural headwind to take rate due to faster growth in on-the-day travel, where no booking fee is charged.
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The company anticipates a multiyear journey for the rollout of pay-as-you-go trials and digital season tickets, indicating potential delays in realizing these opportunities.
Q & A Highlights
Q: What is the timeline for the implementation of the pay-as-you-go trial and digital season tickets in the UK? A: Jody Ford, CEO, explained that the pay-as-you-go trial is likely a multi-year journey, with trials informing the process over the coming year. Digital season tickets currently cover just over half of the market, with further rollout dependent on public ownership transitions of certain operators.