FTSE 250 movers: Trainline surges; Playtech in favour

(Sharecast News) - FTSE 250 (MCX) 21,608.88 0.35% Shares in Trainline surged on Thursday as the online ticketing platform said it expected full-year earnings to be at the upper end of guidance after an 8% jump in interim sales and would start a £150m share buyback.

The company now expects adjusted core profits to grow at the top end of its previous guidance range of between 6% and 9%. Trainline shares were up 8% in London having risen 15% at one stage.

However, the stock is down 34% in the year to date after warnings about "headwinds", including the expansion of London's contactless travel zone and economic uncertainty denting foreign travel.

UK consumer net ticket sales for the six months to August 31 were 8% higher at £2.1bn, while the international business grew 2% to £594m as Trainline focused investment on European high-speed routes with emerging carrier competition.

In Southeast France, increased carrier competition between Paris, Lyon and Marseille drove second quarter sales growth of 34% driven by Trenitalia expanding its services in the region.

"Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the preeminent domestic aggregator," said chief executive Jody Ford.

Analysts at broker Shore Capital retained their 'buy' recommendation on the stock, adding that they felt equity is being unfairly discounted due to "wider UK government noise", referring to plans to create a publicly-owned online train ticket retailer.

"Trainline is well positioned, in our view, to take advantage of the growing digitalisation of the UK rail network, explore European TAM opportunities in line with planned increased carrier competition, whilst also leveraging the proprietary technology platform for further customer engagement and B2B potential."

Playtech was also sharply higher as it said it was on track to deliver FY 2025 adjusted earnings before interest, tax, depreciation and amortisation ahead of expectations after a strong first half.

Adjusted revenues at the FTSE 250 firm - which provides platform, content and other services to the online gambling industry - fell 10% to €387m in the six months to 30 June, while earnings before interest, tax, depreciation and amortisation were 16% lower at €91.6m.

Playtech had previously guided for interim EBITDA of "at least" €90m.

The tech firm is currently undergoing a major overhaul. Earlier this year, it sold Italian gaming business Snaitech to Flutter Entertainment for €2.3bn, as it refocuses on being a pure business-to-business player.

The sale has now completed and around €1.8bn of the proceeds will be returned to shareholders through a special dividend.

Playtech also revised its agreement with Caliente Interactive, effective from 31 March, and now has a 30.8% equity holding in the Mexican sports betting firm.

Mor Weizer, chief executive, said: "These results show the strong start Playtech is making in its transition back to its roots as a predominantly pure-play B2B business.

"Our revised agreement with Caliente sets both parties up for continued success in the future."

Looking to the rest of the year, Weizer said the second half had "started well", despite headwinds in Brazil and Colombia, leaving Playtech on track to beat full-year expectations.

"The strength of our balance sheet will allow us to increase investment in the US and Brazil in the second half, to drive continued growth," Weizer noted.

Founded in 1999, Playtech employs around 7,400 people across 20 countries. Clients include Entain, Bet365, Rank Group and Paddy Power, among others.

FTSE 250 - Risers

Trainline (TRN) 285.00p 9.62% Avon Technologies (AVON) 2,060.00p 6.19% Vistry Group (VTY) 591.00p 3.83% Playtech (PTEC) 411.50p 3.78% Bloomsbury Publishing (BMY) 511.00p 3.23% Cranswick (CWK) 5,180.00p 3.19% Jupiter Fund Management (JUP) 120.20p 3.09% Helios Towers (HTWS) 141.00p 2.92% WH Smith (SMWH) 684.50p 2.78% Chemring Group (CHG) 559.00p 2.76%

FTSE 250 - Fallers

Chrysalis Investments Limited NPV (CHRY) 125.20p -3.99% W.A.G Payment Solutions (EWG) 105.50p -3.65% Baltic Classifieds Group (BCG) 321.50p -3.31% IP Group (IPO) 58.00p -3.17% XPS Pensions Group (XPS) 343.00p -3.11% SDCL Efficiency Income Trust (SEIT) 55.80p -2.96% Burberry Group (BRBY) 1,140.50p -2.73% Oxford Nanopore Technologies (ONT) 169.70p -2.64% Gamma Communications (GAMA) 998.00p -2.16% Hays (HAS) 57.60p -2.04%