Trainline (LSE:TRN) reported a 7% rise in adjusted EBITDA to £100 million for the six months to 31 August, as its International Consumer division turned profitable for the first time.
The London-listed rail and coach ticketing platform said group net ticket sales were broadly flat year-on-year at £3.3 billion, with revenue down 1% to £233 million.
Operating profit fell 5% to £64 million, while basic earnings per share dipped 1% to 11.5p; adjusted basic earnings per share rose 10% to 13.8p, reflecting the impact of the company's share buyback programme.
Trainline attributed the revenue decline to UK refund fees, which were squeezed by a tightening of industry refund rules from April.
By segment, UK Consumer net ticket sales were flat at £2.1 billion, with revenue down 5% to £102 million and adjusted EBITDA down 9% to £46 million, reflecting lower refund fee revenue, a residual impact from a prior commission-rate cut, and higher people and legal costs.
International Consumer net ticket sales fell 4% to £579 million on a constant-currency basis, hurt by weaker Spanish consumer sentiment following rail accidents earlier in the year, softer foreign travel demand linked to Middle East tensions, and European strikes and heat-related disruption, but adjusted EBITDA swung to a £6 million profit from an £8 million loss a year earlier.
Trainline Solutions, the company's B2B ticketing distribution arm, grew net ticket sales 4% to £548 million, with international B2B distribution up 45% and four major European travel management company wins in the half, including the largest operators in the Spanish and German markets.
New chief executive Ian Brown said the business had delivered "a resilient performance in the UK" despite headwinds, and pointed to the Office of Rail and Road's draft Retail Code of Practice, published on 9 October, as "a positive foundation for a fair and open retail market" ahead of the creation of Great British Railways, while adding that it "needs further strengthening".
Trainline reconfirmed its FY2027 guidance for net ticket sales of £6.2 billion to £6.45 billion, underlying revenue of £440 million to £455 million, and adjusted EBITDA at approximately 2.9% of net ticket sales.
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The company's new £100 million share buyback programme, launched in September following completion of the prior £150 million programme, has taken total repurchases to £356 million since September 2023, equivalent to 28% of issued share capital as at 31 October.
On the Competition and Markets Authority investigation into how Trainline presents certain UK fees during booking, opened in August under the Digital Markets, Competition and Consumers Act, the company said it continues to engage with the CMA and other regulators, seeking what it called "a swift resolution" while maintaining a straightforward booking experience for customers.
Trainline also flagged that the timeline for Italian rail liberalisation has slipped by around a year, with SNCF's domestic services between Turin and Naples and Turin and Venice now expected to launch from mid-2028 rather than the previously anticipated date, while Channel Tunnel liberalisation remains on track, with Virgin Trains targeting a 2030 launch and Trenitalia aiming for 2029.