Trainline (LON:TRN) Issues Quarterly Earnings Results

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

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 Trading Down 1.6%

TRN traded down GBX 3.40 during trading on Wednesday, hitting GBX 209.60. 103,024,945 shares of the stock were exchanged, compared to its average volume of 5,414,029. The firm has a market cap of £706.60 million, a price-to-earnings ratio of 10.96 and a beta of 0.38. The firm has a 50 day simple moving average of GBX 202.75 and a 200 day simple moving average of GBX 214.67. The company has a debt-to-equity ratio of 128.17, a quick ratio of 0.52 and a current ratio of 0.63. Trainline has a 1 year low of GBX 178 and a 1 year high of GBX 283.80.

Analysts Set New Price Targets

Several equities research analysts have weighed in on TRN shares. Shore Capital Group reiterated a “buy” rating and issued a GBX 400 price objective on shares of Trainline in a report on Wednesday. Berenberg Bank reissued a “buy” rating and issued a GBX 350 price objective on shares of Trainline in a report on Monday, September 14th. Jefferies Financial Group reissued a “buy” rating and issued a GBX 350 target price on shares of Trainline in a report on Wednesday. Finally, Canaccord Genuity Group decreased their price target on shares of Trainline from GBX 333 to GBX 213 and set a “hold” rating on the stock in a research note on Friday, October 23rd. Five 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 stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 367.57.

Trainline Company Profile

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.