Trainline's (TRN) first-half operating losses were widened by £21m in costs associated with listing its shares on the main market in June, along with increased capital investment.
However, the ticketing platform registered a 19 per cent increase in net ticket sales to £1.8bn, driven by an improved mix of web and app sales, along with higher eticket adoption in the UK and encouraging new customer uptake in international markets. Greater scale fed through to a near doubling in adjusted cash profits.
While the international business grew its net ticket sales by just over half, these only accounted for 14 per cent of overall net ticket turnover. Peel Hunt analysts believe that Trainline will need to invest more as part of its international expansion, which could include higher marketing expenditure. The year-on-year lift in Trainline’s charge for amortisation and depreciation, which rose to £24m, was driven by its investment in its Single Global Platform. The company expects revenue growth from UK consumers – which hit 34 per cent in the first half – to be lower in the second, as revenue streams balance out.
Peel Hunt forecasts full-year 2020 pre-tax profits and earnings per share of £33.3m and 6.2p, rising to £61.2m and 10.8p in 2021.
| TRAINLINE (TRN) | ||||
| ORD PRICE: | 412p | MARKET VALUE: | £1.98bn | |
| TOUCH: | 410-412p | 12-MONTH HIGH: | 519p | LOW: 350p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 74p* | NET DEBT: | 12%** | |
| Half-year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 (Pre-IPO) | 99.9 | -11.1 | -2.53 | na |
| 2019 | 129.0 | -87.5 | -20.3 | na |
| % change | +29 | +688 | +703 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £550m, or 114p a share **Excludes lease liabilities of £16m | ||||
