Trainline takes 'assertive stance' over plans for state-backed rival

Daily Mail​

07-05-2025

Trainline is taking an 'increasingly assertive stance' with the UK Government over plans to revamp the rail ticket sector.
The Department of Transport announced proposals in January to set up a new state-backed retail platform aimed at modernising Britain's complex rail ticketing system.
It intends to launch the retailer once it has also established Great British Railways (GBR), a new body that will operate rail transport.
Trainline investors are concerned that the state-backed retailer will eat into the group's dominance of its domestic market.
The firm told shareholders on Wednesday it was 'taking an increasingly assertive stance with the Government to deliver on its commitment to deliver a fair, open and competitive future retail market'.
It said: 'The Government was unequivocal in its commitment to a fair, open and competitive rail retail market, recognising the fundamental role that independent retailers play in driving innovation and attracting more customers to the railway.
Trainline has made its case 'strongly' in response submitted official consultation on the future market and it is also 'actively challenging where operators' self-preference their own channels today', it added.
Trainline said: 'At the highest level the company expects level playing field safeguards for independent retailers.
'Such safeguards, as recently supported by the [Competition and Markets Authority], are typically seen in other regulated markets in the UK, including the telecoms, water and energy sectors.'
It came as Britain's biggest train ticketing business also reported its operating profits jumped by £30million to £86million in the year ending February, as net ticket sales expanded by 12 per cent to a record £5.9billion.
The group told shareholders that growth reflected domestic demand benefiting from fewer strikes and an industry fare hike.
Trainline also said growth reflected the shift towards digital bookings, which represented 52 per cent of consumer ticket purchases in the UK, up five percentage points year-on-year.
At the same time, ticket sales in the firm's business-to-business arm climbed by a fifth to £941million, thanks partly to strong white-label carrier sales.
Consequently, total revenue increased by 12 per cent to £442million, with a further boost provided by insurance and hotel bookings through the company's website.
And gross profits rose by 15 per cent to £352million following a cut in the fulfilment fees that Trainline pays to the railway sector when a customer buys a barcode ticket.
Jody Ford, chief executive of Trainline, said: 'Our sustained investment in tech innovation over the last three decades is delivering for customers, driving industry growth and is reflected in our performance.
'Looking ahead, liberalised routes across Europe will be worth €12billion by 2030, almost three times their size today.'
Ford pointed to Spain as a 'blueprint for Europe'; Trainline has taken advantage of a rise in the number of the country's high-speed carrier brands to nearly triple its ticket sales there in the past two years.
Carrier competition is further anticipated to develop in France and Italy in the coming years on routes set to generate a combined €9.7billion of passenger revenue by 2030.
Yet Trainline warned of a potential hit to trade this year from global macroeconomic uncertainty, Transport for London's expansion of its contactless travel zone, and Google's changes to its search engine results page.
As a result, Trainline shares slumped by 7.6 per cent down to 258.6p on Wednesday morning, taking their losses to around 37 per cent since the year started.
Analysts at Shore Capital said: 'TRN's equity continues to price in bad news in our view.
'This is despite the Group remaining well-positioned to scale alongside the new entrant carrier competition and the B2B opportunity both in the UK and Europe.'