Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Trainline PLC (TNLIF, Financial) achieved a record operating performance with a 12% increase in net ticket sales to GBP6 billion and a 12% rise in revenue to GBP442 million.
- The company saw a significant 30% increase in adjusted EBITDA to GBP159 million, benefiting from strong top-line growth and operating leverage.
- Trainline PLC (TNLIF) is Europe's number one rail app, with a market-leading user experience and a substantial customer base of 27 million.
- Internationally, Trainline PLC (TNLIF) positioned itself as the aggregator of choice, particularly in Spain, where sales have almost tripled over the last two years.
- The company is leveraging AI to enhance user experience and has introduced an AI travel assistant to provide real-time travel and disruption information.
Negative Points
- Trainline PLC (TNLIF) faces near-term headwinds, including changes to Google's search results page, which have impacted web sales.
- The company anticipates a GBP150 million sales risk due to the expansion of TFL's contactless zone, known as Project Oval.
- There is ongoing macroeconomic uncertainty impacting foreign travel, including US inbound travel.
- The UK government is considering replacing top online retail sites with a single public sector app, which could affect Trainline PLC (TNLIF)'s market position.
- The company expects revenue growth to be slower than net ticket sales growth due to a reduction in the UK commission rate.
Q & A Highlights
Q: Can you discuss your market share ambitions in Europe, particularly in Spain, and any recent trends affecting your business?
A: Jody Ford, CEO, explained that Trainline's market share in Spain averages 12% across various routes, with ambitions to exceed 20%. Recent trends include changes in Google's search results impacting web sales, but Trainline is adapting by leveraging AI and partnerships to maintain growth.
Q: What are your thoughts on the potential impact of a government-backed GBR app on your business?
A: Jody Ford expressed confidence in Trainline's ability to compete with a GBR app, citing their strong customer base, brand trust, and app features. He emphasized the importance of a level playing field and fair competition, which Trainline is advocating for with the government.
Q: How does Trainline plan to leverage AI and customer data to enhance its services?
A: Jody Ford highlighted the introduction of an AI travel assistant to improve customer experience by providing real-time travel information and handling tasks like refunds. Peter Wood, CFO, mentioned openness to sharing data with the government to support rail industry development.
Q: What is Trainline's strategy for international marketing and expansion, particularly in liberalizing markets like France and Italy?
A: Jody Ford stated that Trainline is testing marketing strategies and plans to increase investment in regions like France as liberalization progresses. The focus is on building brand awareness and capturing market share as competition increases.
Q: Can you elaborate on the digital Pay As You Go trials and the competitive landscape for this initiative?
A: Peter Wood explained that Trainline is participating in tender processes for digital Pay As You Go trials, competing against companies like DETEC and Tracsis. The trials aim to test Trainline's app-based solution, which offers features beyond traditional tap-and-go systems.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
