Trainline plc a strong performance over the year

Trainline plc (LON:TRN) have today provided results for the year ended 29th Feb 2020.

A strong financial performance ahead of expectations and delivery against strategic priorities; actions taken to navigate COVID-19 downturn and position business for long term growth.

FY 2020 summary financial highlights:

FY 2020 results summary:

·      Net ticket sales up 17% to £3.7 billion in line with guidance, reflecting increased mobile demand from greater eticket adoption in UK and strong customer acquisition in International

·      Revenue increased 24% to £261 million at top end of guidance, benefiting from net ticket sales growth, revenue optimisation and the launch of new ancillary revenue streams

·      Adjusted EBITDA up 62% to £85 million driven by volume growth and the operating leverage achieved across our cost base

·      Operating profit of £2 million and loss after of tax of £81 million, primarily driven by exceptional costs relating to the IPO

·      Operating free cashflow of £59 million driven by strong adjusted EBITDA performance and reduced capital expenditure

·      Leverage reduced to 0.8x adjusted EBITDA, benefiting from primary proceeds from the IPO and strong cashflow generation

·      Good progress against strategic priorities:

o  Enhancing customer experience: Strong conversion growth in both UK Consumer and International; launched SplitSave in app, a split-ticketing feature

o  Building demand: Monthly visits up 19% to c.90 million; share of mobile transactions up 10% points to 76%

o  Optimising revenue: Take-rate increased c.40bps in UK Consumer and c.110bps in International, driven by new ancillary revenues

o  Growing Trainline for Business (T4B): First clients now live on Global API platform; retained both franchises that have come up for renewal for our white label retailing service since IPO, the West Coast franchise and East Midlands

Notes:

(1)   Adjusted EBITDA excludes share based payment charges and exceptional items

(2)   Adjusted basic earnings per share adjusts for the exceptional one-off costs in the period, amortisation of acquired intangibles and share based payment charges together with the tax impact of these items

(3)   Operating free cash flow is cash generated from operating activities adding back cash exceptional items, excluding non-cash impairments, and deducting purchase of property, plant and equipment excluding those acquired through business combinations or trade and asset purchases

(4)   Net debt/EBITDA is gross debt less cash and cash equivalents divided by LTM adjusted EBITDA

Impact of COVID-19 and outlook for FY 2021:

·      Significant impact on trading in Q1 FY2021 to date as a result of COVID-19 lockdown, with UK and European passenger volumes currently down >95%

·      Confident Trainline can navigate even an extended downturn if necessary given significant liquidity headroom and mitigating actions taken, whilst maintaining investment in the Group’s strategic priorities to drive long term growth

·      As previously disclosed, c.£150 million liquidity headroom expected as at end of May, with monthly cash outflow from operating costs and capex reduced to c.£8-9 million

·      Group will update on guidance for FY 2021 once visibility improves

Clare Gilmartin, CEO of Trainline said:

 “We are pleased to have delivered a strong performance over this past year, in particular to have exceeded expectations set at IPO for FY20 Revenue growth and EBITDA. We have also made significant progress against our strategic priorities. 

“In recent weeks we have seen disruption to our business due to COVID-19, and are grateful to our frontline staff in particular for helping our customers over this period.  We remain confident that the long-term growth opportunity for our business remains unchanged, and are committed to our long term growth plans.”