Trainline posts £40m loss as passenger numbers evaporate
Trainline this morning posted a £43m loss as the coronavirus pandemic hammered the number of passengers making rail journeys.
In its first half results, the FTSE 250 firm said that sales fell 81 per cent to £358m in the period to the end of August, including the three month initial lockdown in the spring.
Passenger numbers collapsed the three months from March to June as all but essential journeys were banned.
As a result, the digital ticket app saw revenue contract three-quarters to a mere £31m.
According to Office of Road and Rail figures, the number of people using the UK’s railways fell to the lowest levels in almost 200 years between April and June.
Just 35m journeys were made in the three month period, down more than 400m on the same quarter in 2019.
The results are Trainline’s first since chief exec Clare Gilmartin said that she would step down in the spring.
She said: “Covid-19 continues to cause significant disruption to the rail and coach industry as regional and national lockdowns are put in place across Europe.
“However, we have taken quick and decisive steps to scale back our cash outflows and ensure we have sufficient long-term liquidity.
“Looking ahead, our position as the digital innovator in the industry means we are well placed to recover quickly when lockdowns lift and market conditions improve, as demonstrated in the second quarter.”
Trainline said it was confident it had sufficient liquidity to navigate an extended downturn caused by new coronavirus restrictions, with a new national lockdown coming into effect today.
Shares in the company rose 4.4 per cent as markets opened this morning.