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Shares in Trainline PLC soared on Thursday after reaching agreement to amend its third-party retail licence, providing the transport ticketing platform ‘greater certainty’ even though it is likely to see a cut in commission.
Shares in Trainline were 20% higher at 237.25 pence in London early Thursday. However, the stock remains 48% lower over the past 12 months.
The online train and coach ticketing platform said it has reached agreement with Rail Delivery Group on a memorandum of understanding over the licence, and will now enter into a ‘collaborative phase of engagement’ on new terms.
If new contractual terms cannot be agreed, under the memorandum, RDG has the right to implement a legally binding minimum set of terms. Trainline estimates this would result in a 0.25% net reduction in its commission rate, effective April 1, 2025.
The minimum terms include a 0.5% reduction in the base business-to-consumer online sales commission rate, to 4.5% from 5.0%, and an offsetting removal of central industry costs of around 0.25%.
‘This is a step forward in providing greater certainty to Trainline. It allows us to invest further in product innovation and marketing to encourage more people back to rail,’ said Chief Executive Jody Ford.
‘We are committed to continuing to work constructively with RDG and the Government to reach agreement on a future retail framework that works for the customer, the industry and rail retailers like Trainline.’
By Lucy Heming; lucyheming@alliancenews.com
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