Trainline raises forecast as US tourists get off to a strong start to the year

By Geoffrey Smith — Trainline (LON:TRNT) stock rose more than 20% at the open on Wednesday as a sharp rebound in spring tourism led it to raise its forecast.

The company, which specializes in selling online tickets for train travel across Europe, said net ticket sales increased 16% in the four months to June, compared to the same period before the pandemic, citing “a faster than expected recovery of passenger rail transport”. volume across Europe – including a notable resurgence of inbound customers from the US – as well as the benefit of Trainline increasing investment in its international business. »

Trainline said it now expects sales for the year ending February 2023 to rise 18% to 27% from pre-Covid levels, while overall revenue is expected to rise 22% at 31%.

However, he expects an EBITDA margin of only around 2%.

In May, the company said it expected net ticket sales of around 4 billion pounds ($4.8 billion) for the current year, generating revenue of between 280 million and 310 million pounds.

The outlook for the rail sector has improved markedly as Europe largely eased its mobility restrictions as the Covid-19 virus mutated into less virulent strains. However, a number of countries, including large markets such as the UK and France, are rapidly coming up against new constraints in the form of industrial disputes. The UK is facing its first national strike by train drivers in more than two decades, while in France a strike by staff at train operator SNCF is expected to severely disrupt traffic in the coming days.

As of 3:20 a.m. ET (0720 GMT), shares of Trainline had risen 20.6% to their highest level since November 2021.

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