Shares in Trainline (TRN) have fallen almost 30% over the past six months with the train tickets platform’s hoped-for recovery derailed by industrial action.

The rail strikes, which began last autumn, continued into winter and show few signs of letting up as Mick Lynch and the RMT union trade barbs with the UK Government, directly impact ticket sales for Trainline.

In the pre-strikes half to August 2022, Trainline’s net ticket sales rose 116% year-on-year to £2.2 billion as the rail industry continued its recovery across Europe and the company benefited from e-ticket growth in the UK. An ongoing structural driver for the business as people move away from paper tickets. Liberum argues strike disruption and its impact on estimates is ‘a transient issue’.

The broker also notes that the competitive threat from state-owned platform Great British Railways is diminishing as ‘the project continues to be delayed and seemingly diluted. This provides a clearer path and a return to the share price trading on fundamentals over the medium term.’

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