# Trainline plc a strong performance over the year

- Link: https://www.directorstalkinterviews.com/trainline-plc-a-strong-performance-over-the-year/412819455
- Published: 2020-05-07T07:37:11+01:00
- Author: Giles Arbor

**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:**

| £m unless otherwise stated:  | FY 2020 | FY 2019 | Variance | 
|   |   |   |   | 
| Net ticket sales | 3,727 | 3,194 | +17% | 
| Revenue | 261 | 210 | +24% | 
| Adjusted EBITDA^((1)) | 85 | 53 | +62% | 
| Operating profit | 2 | 11 | (78)% | 
| Adjusted basic earnings per share^((2)) | 8.1p | 2.4p | +5.6p | 
| Basic earnings per share | (17.7)p | (3.3)p | (14.4)p | 
| Operating free cashflow^((3)) | 59 | 42 | +39% | 
| Net debt / Adj. EBITDA^((4)) | 0.8x | 3.7x |   |

**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.”

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