Business
Trainline shares accelerate on rosier earnings outlook
Trainline has seen shares surge higher after it boosted its earnings outlook despite a hit from the Government’s move to expand “tap-in and tap-out” contactless payment across more UK stations.
The online ticketing platform notched up an 8% rise in UK net consumer ticket sales to £2.1 billion in the six months to the end of August, thanks to a bounce back in demand for leisure travel and commuting, and as year-earlier trading was impacted by strike action.
But it said it took a hit from the first phase of the Department for Transport’s rollout of the contactless payment network to more stations, allowing passengers to tap-in and tap-out with bank cards and pay the guaranteed best fare available at that time of day.
Consumer revenues were flat at £107 million, it added.
In spite of this, London-listed Trainline – which also has operations across Europe – said it now expects full-year underlying earnings at the top end of its previous guidance, for between growth of 6% and 9%.
Shares in the FTSE 250 firm soared as much as 13% on Thursday morning trading, as it also cheered investors with plans to bolster returns with up to another £150 million in share buybacks.
Jody Ford, chief executive of Trainline, said: “Trainline has delivered a robust performance in the first half and today announces improved guidance for the full-year alongside an enhanced £150 million share buyback programme.”
He added: “Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the pre-eminent domestic aggregator, most recently in south-east France where increased carrier competition between Paris, Lyon and Marseille has driven second quarter sales growth of 34%.”
In the update ahead of interim results in November, Trainline said overall group revenues lifted 2% to £235 million in the first half, as net ticket sales rose 8%.
The firm said it was keeping guidance unchanged for full-year group-wide growth of 0% to 3% for revenues and 6% to 9% for net ticket sales.
Russ Mould, investment director at AJ Bell, said: “The shares had been weak this year amid concerns about new competitive threats in the UK, but the trading update is a reminder that Trainline is a bigger beast.
“France is acting like a rocket for the company’s sales growth and that is helping to offset pockets of weakness elsewhere.
“The overall tone is upbeat and that’s exactly what the market needed to hear to get the share price moving higher again.”
Heineken has announced a substantial investment exceeding £44 million into hundreds of its pubs across the UK, a move expected to create approximately 850 jobs.
The Dutch brewing giant’s Star Pubs operation, which manages 2,350 sites nationwide, is undertaking this significant financial commitment despite a challenging period for the pub sector.
The industry has faced considerable pressure over the past year, grappling with escalating labour costs and increases in national insurance contributions.
Concurrently, consumer spending has been constrained by concerns over inflation and rising unemployment, further impacting pub revenues. However, pubs did receive additional business rates support from the government last month, aimed at alleviating some of these financial burdens.
Lawson Mountstevens, managing director of Star Pubs, indicated that the investment strategy is partly designed to bolster revenues and help the group navigate the recent “sustained increases in running costs”.
This year, £44.5 million will be allocated to upgrades for 647 pubs. A notable 108 of these venues are earmarked for particularly significant cash injections, with each transformation costing at least £145,000.
Heineken clarified that while the majority of its pubs are group-owned, they are independently operated by local licensees. A key focus for this investment, particularly in the lead-up to the 2026 football World Cup, will be on sports-focused venues.
The pub firm and brewer has a history of significant investment in British pubs, having pumped £328 million into the sector since 2018. Work has already commenced at 52 locations, including eight projects dedicated to reopening boarded-up pubs that have endured lengthy closures.
Mr Mountstevens also urged the government to reduce the tax burden on pubs, arguing it would ease cost pressures and foster further job creation within the industry.
He stated: “We can only do so much; the root-and-branch reform of business rates that the industry has been calling for over many years is urgently required, as well as a lowering of the burden of taxation on pubs, including VAT and beer duty.”
He concluded with a direct appeal: “We are calling on the Government to support us in bringing out the best in the Great British pub.”
GameStop’s boss Ryan Cohen says he sees potential to make eBay a much bigger rival to Amazon.
Source link
It comes as the US said on Monday it will begin to help “guide” vessels out of the Strait of Hormuz.
Source link
Iran says it forced US warship back from Strait of Hormuz
It took 40 years for technology to catch up to this zipper design
Britney Spears case ends with guilty plea in reckless driving matter
-
Tech1 week agoA Brain Implant for Depression Is About to Be Tested in Humans
-
Tech1 week agoAlmost 90% of women leave tech industry within 10 years | Computer Weekly
-
Business1 week agoPakistan’s oil market is fuelling the crisis | The Express Tribune
-
Business7 days ago‘I had £20,000 stolen and had to fight a 13-month fraud reporting rule to get it back’
-
Sports6 days agoPro wrestling star Steph De Lander reveals how colleague’s advice helped lead her to title triumph at ACW
-
Entertainment1 week agoNorway joins Type 26 Frigate Programme to boost NATO naval power
-
Entertainment1 week agoMelania Trump says ABC should ‘take a stand’ on late-night host Kimmel
-
Tech6 days agoThis Ambitious Laptop Doesn’t Leave Much Room for Your Hands