By Salma El-Sakka
Ticketing platform Trainline has reported a 17% drop in half-year pre-tax profits to £55.2 million after setting aside £3.7 million to cover potential costs from a Competition and Markets Authority (CMA) investigation into alleged “drip-pricing” practices.
CMA probe focuses on hidden fees
The CMA announced in August that it was investigating Trainline, Virgin Atlantic and Red Driving School over concerns that customers were not shown full prices upfront. The Trainline investigation examines whether all mandatory fees were displayed before travellers bought train and coach tickets on its app and website. The regulator observed additional fees ranging from 50p to £2.79, including a £1.50 booking fee for coach journeys.
Profit hit and share reaction
The provision contributed to the profit decline for the six months to August 31, sending shares down as much as 8% intraday before settling around 2% lower. Trainline said it continues to engage proactively with the CMA and warned the final financial impact could vary considerably given the uncertain outcome.
Refund rule changes also weigh on revenue
First-half 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. UK consumer revenues fell 5% to £102 million, while overall net ticket sales remained flat at £2.1 billion amid a government freeze on regulated rail fares.
New CEO urges parity with state-backed platform
Chief executive Ian Brown, who took over from Jody Ford in September, called on the government to ensure fair treatment ahead of the launch of the state-backed Great British Railways (GBR) ticketing website and app. Brown welcomed the Office of Rail and Road’s draft retail code of practice but said it needs further strengthening to guarantee non-discriminatory access to fares, data and systems.
