Source A: Trainline
Trainline plc, which is listed on the London Stock Exchange, sells rail and coach tickets through its app and website in the UK and across Europe. It also provides ticketing technology to train operators and to travel management companies, which book travel for businesses. Its app is the most downloaded rail app in Europe.
Trainline earns its revenue mainly as commission on the tickets it sells. In April 2025 its commission on UK online ticket sales fell from 5.0% to 4.5%, under a rail industry agreement announced in 2022.
In the year to 28 February 2026:
it sold tickets worth £6 319 million, up 7%, to 27 million customers, 18 million of them in the UK
revenue rose by 2% to £453 million, while UK revenue fell by 2%
adjusted EBITDA was 2.80% of the value of tickets sold; the target for the year to February 2027 is about 2.9%
Growth in the UK slowed in the second half of the year. Trainline identified three causes:
Contactless payment. Transport for London is expanding contactless payment, which lets passengers travel by tapping a bank card without buying a ticket.
Operators' websites. Train operators have encouraged customers to use their own websites, including by offering automatic delay compensation, which independent retailers such as Trainline were not allowed to offer.
Fares. The government has frozen regulated rail fares until March 2027.
The government is creating Great British Railways to run most of the railway; its online retailer is expected eventually to replace the operators' websites. In March 2026 the government announced that passengers will then be able to claim delay compensation wherever they bought their ticket, including through Trainline.
In the first half of the year, sales to foreign travellers fell after Google changed its search results page. Trainline has made its app available within ChatGPT and introduced artificial intelligence features which help customers when trains are disrupted. Young people are among its most important customers: 45% of railcard holders aged 16 to 30 use a Trainline digital railcard, held on their phone.
Source: Trainline plc, Results for the twelve months ended 28 February 2026
Trainline's adjusted EBITDA was 2.80% of the value of the tickets it sold in the year to February 2026. It aims for about 2.9% in the year to February 2027.
Analyse one way in which setting an objective for adjusted EBITDA as a percentage of ticket sales might help Trainline's managers.
Was this exam question helpful?



























