By Karim Hammam
Trainline has set aside £3.7 million to cover potential costs arising from a Competition and Markets Authority (CMA) investigation into alleged “drip-pricing” practices on its platform.
Profit impact
The provision contributed to a 17% drop in pre-tax profits to £55.2 million for the six months ended August 31. Shares fell as much as 8% in early trading on Wednesday before settling around 2% lower.
CMA investigation details
The CMA announced in August that it was investigating Trainline, Virgin Atlantic and Red Driving School over concerns that mandatory fees were not displayed upfront. The regulator observed additional fees ranging from 50p to £2.79 on transactions, including a £1.50 booking fee for coach journeys. The probe is part of a wider clampdown on misleading pricing practices where mandatory charges are separated from the headline price or added later in the buying process. The CMA is expected to provide an update in January.
Rail refund rule changes
Trainline said earnings were also affected by new rail refund rules that took effect in April, limiting refund requests to before 11.59pm on the day before travel. The change reduced fee revenue for the platform, which charges customers for ticket refunds.
The company said it continues to engage proactively with the CMA and other regulators, seeking a swift resolution that ensures clear and transparent information for customers. It warned that the final financial impact could vary considerably given the uncertainty of the investigation’s outcome.
