TIDMTRN
RNS Number : 2311Z
Trainline PLC
17 September 2020
TRAINLINE PLC TRADING STATEMENT AND NOTICE OF HALF YEAR
RESULTS
17(th) September 2020
Trainline plc successfully navigating impact of COVID-19 and
remains strongly positioned to lead the accelerated shift to online
and digital ticketing
Trading performance for first six months of FY 2021
Trainline plc ("Trainline", the "Company" or the "Group"), the
leading independent rail and coach travel platform selling rail and
coach tickets to millions of customers worldwide, today provides an
update on its trading performance for the first six months of the
financial year 2021 (1 (st) March 2020 to 31(st) August 2020).
Successfully navigating impact of COVID-19
Net ticket sales:
Six months ended 31 August 2020
Q1 2021 % of Q2 2021 % of H1 2021 % of
PY PY PY
------------------------- -------- ----- -------- ----- -------- -----
Net ticket sales (GBPm)
UK Consumer 64 13% 154 30% 218 22%
UK T4B 3 1% 21 7% 23 4%
-------- ----- -------- ----- -------- -----
Total UK 67 8% 174 22% 241 15%
International 12 10% 105 74% 117 45%
-------- ----- -------- ----- -------- -----
Total Group 79 9% 280 30% 358 19%
% of PY represents the percentage of net ticket sales in the
equivalent period in the prior year
-- Q1 FY 2021: Government measures to curb the spread of
COVID-19 resulted in a significant slowdown in all the markets in
which Trainline operates. The impact was particularly marked in the
first quarter of the financial year, when industry passenger
volumes in the UK fell to c.5% of the same period in the prior year
through April and May, with similar declines across International
markets. Trainline also processed a significantly higher number of
refund requests (more than 2 million in the UK alone). As a result,
Group net ticket sales in Q1 declined to GBP79 million, equivalent
to 9% of the same period in the prior year.
-- Q2 FY 2021: Group net ticket sales in the second quarter
stepped up to GBP280 million - equivalent to 30% of the same period
in the prior year - as operating conditions began to recover. This
followed the relaxation of government lockdowns and social
distancing measures, first in International markets and then
several weeks later in the UK. There was also a notable shift of
ticket volumes to online and digital channels. Group net ticket
sales improved throughout the quarter, exiting in August at 42% of
the equivalent prior year period.
o UK Consumer net ticket sales of GBP154 million was 30% of the
equivalent prior year period - compared to Q2 industry passenger
volumes at 24%(1) - and improved over the quarter to 46% in August.
This reflected an accelerated shift to online and digital
ticketing, as well as a significant step up in new customers to
Trainline in the second quarter.
o UK Trainline for Business (UK T4B) net ticket sales of GBP21
million was 7% of the equivalent prior year period, up from 1% in
Q1, and improved over the quarter to 15% in August . While trends
improved over the second quarter, demand for business travel
remained subdued and the White Label business continued to be
impacted by season ticket refunds.
o International net ticket sales of GBP105 million was 74% of
the equivalent prior year period, up from 10% in Q1, and at the end
of the quarter in August was at 78%. The International business has
recovered more quickly than the UK, primarily reflecting a much
earlier relaxation of lockdown and social distancing restrictions
in those markets.
-- H1 FY 2021: The impact of COVID-19 in the first half resulted
in Trainline's Group net ticket sales decreasing to GBP358 million,
equivalent to 19% of the same period in the prior year.
Revenue:
Six months ended 31 August 2020
H1 2021 H1 2020 % of PY
-------------------------- ------------- ------------- ------------
Revenue (GBPm)
UK Consumer 19 86 22%
UK T4B 6 30 22%
------------- ------------- ------------
Total UK 25 115 22%
International 6 14 41%
Total Group 31 129 24%
------------- ------------- ------------
% of PY represents the percentage of revenue in the equivalent
period in the prior year
-- The decline in Group net ticket sales resulted in Group
revenue decreasing to GBP31 million in the first half, 24% of the
revenue in the same period in the prior year:
o UK Consumer revenue declined to GBP19 million, 22% of the
equivalent prior year period, driven by the material decline in net
ticket sales. Revenue take-rate (the rate of revenue generated from
net ticket sales) was impacted by a lower mix of customers from
overseas, who as a cohort generate higher revenue per transaction,
partly offset by the distorting effect of a significant ly higher
amount of refunds in the period.
o UK T4B revenue declined to GBP6 million, 22% of the equivalent
prior year period, given materially lower net ticket sales, offset
in part by a higher proportion of fixed fee income for our White
Label business. As with UK Consumer, UK T4B's revenue take-rate was
distorted by a significant ly higher level of refunds processed in
the period.
o International revenue decreased to GBP6 million, 41% of the
equivalent prior year period, given the material reduction in net
ticket sales. As with the UK, International take-rate was impacted
by a lower mix of customers from overseas, who as a cohort generate
higher revenue per transaction than domestic travellers.
Monthly cash outflow lower than guided and liquidity position
improved
-- In April 2020, Trainline guided to a monthly cash outflow
from operating costs and capital expenditure of c.GBP8-9 million,
having taken quick and decisive steps to mitigate the impact of
COVID-19. Mitigating actions included: Pausing marketing and other
discretionary spend, furloughing certain teams under the UK
Government's Coronavirus Job Retention Scheme, introducing a
recruitment freeze, and deferring staff pay reviews.
-- Over the first half of the year the Group outperformed its
expectations for operating cost savings. Given this outperformance
and the revenue the Group generated over the period, the Group
expects to report an Adj. EBITDA loss for H1 FY 2021 of between
GBP(14)-(19) million.
-- With the industry now on a path to recovery, albeit more
slowly than previously expected, Trainline is phasing its
operations back to normal. It has brought back most of its
furloughed teams and is now dialing up discretionary spend,
including its marketing activity, in step with customer demand in
each of its respective markets.
-- The Group continues to have sufficient liquidity to operate
for the foreseeable future. Trainline's liquidity headroom improved
to c.GBP162 million at the end of August 2020, compared to c.GBP150
million at the end of May 2020. This improvement reflects strong
operational cost management and the working capital benefit from
increased net ticket sales in the second quarter.
Strongly positioned to lead accelerated shift to online and
digital ticketing
-- While taking quick and decisive steps to mitigate the impact
from COVID-19 in the first half, Trainline has retained its focus
on creating value and enhancing the experience for customers, while
driving long term growth for shareholders.
-- Trainline maintained its investment in improving the customer
experience, including developing innovative new products and
services. This has further strengthened Trainline's position to
support the industry's recovery, and the shift to online, offering
customers:
o an alternative to queuing at the station - with an intuitive
online ticket booking and best-in-class eticket experience,
available through a 4.9-star rated app
o access to the cheapest train tickets - with the SplitSave
split-ticketing feature soon to be complemented by a range of
digital railcards that help customers save up to a third off
travel
o helpful on-the-go travel information - including the recently
launched Crowd Alerts feature that helps customers to identify
trains on which they can safely socially distance
o improved self-serve functionality - with simple, automated
change and refund processes in the app and on the website
Clare Gilmartin, CEO of Trainline said:
"By acting quickly and remaining agile, we continue to
successfully navigate through the significant disruption COVID-19
has caused to the rail and coach industry. We have rapidly
processed unprecedented levels of customer refunds, reduced costs
and ensured we have enough liquidity to operate for the foreseeable
future.
"I'm pleased to now see the industry recovering, particularly in
our International markets, as well as a faster shift to online
reservation and digital ticketing, as anticipated, given the
increased customer need for touchless travel.
"We will continue working hard to make rail and coach travel
easier, safer and more accessible, reassuring customers and
generating incremental demand for the industry. This includes
making our 4.9-star rated app even better, adding new innovations
like Crowd Alerts to help customers travel more safely, plus
offering quick and easy access to the cheapest rail fares through
SplitSave and our brand-new digital railcards."
Notice of half-year results
Trainline will publish its half-year results for the first six
months of the financial year 2021 (the six-month
period running from 1 (st) March 2020 to 31 (st) August 2020) on Thursday 5(th) November 2020.
The half-year results will be published at 07.00am (UK time)
through the regulatory news service (RNS) and on the Company's
website .
Notes
1. Q2 industry passenger numbers, as reported by the UK
Government Department for Transport (simple daily average)
Enquiries
For investor enquiries, Andrew Gillian investors@trainline.com
For media enquiries, Victoria Biggs +44 7850 205490 / press@trainline.com
Brunswick Group
Simone Selzer +44 207 404 5959 /
trainline@brunswickgroup.com
About Trainline:
Trainline (www.trainline.com) is the leading independent rail
and coach travel platform selling rail and coach tickets to
millions of travellers worldwide, enabling them to seamlessly
search, book and manage their journeys all in one place via its
highly rated website and mobile app. Trainline is a one-stop shop
for rail and coach travel bringing together millions of routes,
fares and journey times from more than 270 rail and coach carriers
across 45 countries.
This announcement includes forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties, many of which are beyond the Group's control and all
of which are based on the Directors' current beliefs and
expectations about future events. Forward-looking statements are
sometimes identified by the use of forward-looking terminology such
as "guidance", "believe", "expects", "may", "will", "could",
"should", "shall", "risk", "intends", "estimates", "aims", "plans",
"predicts", "continues", "assumes", "positioned", "targets" or
"anticipates" or the negative thereof, other variations thereon or
comparable terminology. These forward-looking statements include
all matters that are not historical facts and include statements
regarding the intentions, beliefs or current expectations of the
Directors or the Group concerning, among other things, the results
of operations, financial condition, prospects, growth, strategies,
and dividend policy of the Group and the industry in which it
operates. No assurance can be given that such future results will
be achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements. Such forward-looking statements
contained in this announcement speak only as of the date of this
announcement.
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END
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