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(Sharecast News) - Trainline posted improved interim earnings and reaffirmed guidance on Wednesday, after its international business swung into the black for the first time.
The booking platform saw net ticket sales edge up to £3.26bn in the six months to August end from £3.25bn a year previously, while revenues softened 1% to £233m, after UK refund rules were tightened.
But adjusted earnings before interest, tax, depreciation and amortisation were 7% higher at £100m, after a strong performance in the international consumer division helped offset weaker trading in the UK. Revenues in UK consumer fell 5% at £102m but rose 2% to £34m overseas. Trainline Solutions, its business-to-business unit, posted a 3% uplift in sales to £97m.
Ian Brown, chief executive, confirmed the company remained on track to meet full-year guidance, despite "multiple headwinds". The market is currently expecting net ticket sales between £6.2bn and £6.25bn for the full year, and underlying revenues of between £440m and £455m.
He continued: "Rail is entering a new era with Great British Railways, and the Office of Rail and Road's code of practice is an important step forward. It confirms fair, transparent and non-discriminatory access to fares, products, systems and data, and is a positive foundation for a fair and open retail market.
"But it needs further strengthening, and we are maintaining our assertive stance."
The ORR launched a consultation last month on its draft code of practice, which is designed to establish new safeguards for the online rail ticket market under GBR. The state-owned company will bring responsibility for tracks and trains under a single organisation for the first time since privatisation in the 1990s.
Trainline is also the subject of an ongoing investigation by the Competition and Markets Authority, which is probing how it presents mandatory booking fees. Trainline said it was continuing to engage "proactively" with the regulator on the matter.
As at 0915 GMT, shares in Trainline were down 1% at 210.8p.
Shore Capital analyst Katie Cousins called it a "robust" first-half performance. She continued: "While UK regulatory and industry reform remain the obvious investor focus, we continue to believe these concerns overshadow the underlying performance of the business, including resilient UK demand, growing international business-to-business exposure and continued cash generation."
Shore Cap has a 'buy' rating on the stock.
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