Welcome to the Trainline Half Year 2025 results. My name is Ezra, and I will be your coordinator today. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. I will now hand you over to your host, Jody Ford, Chief Executive Officer. Please go ahead.
Good morning, everyone. Thank you for joining us today for our half-year results presentation. I'm Jody.
I will now hand you over to your host, Jody Ford, Chief Executive Officer. Please go ahead.
Good morning, everyone. Thank you for joining us today for our half-year results presentation. I'm Jody.
I will now hand you over to your host, Jody Ford, Chief Executive Officer. Please go ahead.
Good morning, everyone. Thank you for joining us today for our half-year results presentation. I'm Jody.
I will now hand you over to your host, Jody Ford, Chief Executive Officer. Please go ahead.
Good morning, everyone. Thank you for joining us today for our half-year results presentation. I'm Jody.
I will now hand you over to your host, Jody.
We'll try that again. Good morning, everyone. Thank you for joining us today for our half-year results presentation. I'm Jody Ford, CEO of Trainline, and I'm joined by Pete Wood, our CFO. Let's first go through the disclaimer. Onto the agenda for today. I'll give an introduction, briefly discussing the progress we've made in the first half of the year. I'll also recap on the opportunity ahead and update on the regulatory backdrop. Pete will talk you through our financial performance. I'll then update you on how we're progressing against our strategic priorities. After that, we'll hand back to the operator for questions. The group scaled well in the first half, processing over 110 million transactions, 18% higher than last year. In the U.K., we continue to digitize rail travel, with industry e-ticket penetration rising to 51%, and our share of the commuter travel segment grew to 24%.
In international, we further positioned ourselves as the aggregator in Europe, with combined net ticket sales across Spain and Italy up 23%. The group delivered a strong financial performance in the first half, with net ticket sales up 14% and revenue up 17%. Together with the benefits of Operating Leverage, this drove a 44% increase in Adjusted EBITDA to GBP 82 million. We are Europe's number one rail app. In the first half, our app was downloaded almost twice as often as number two and three, SNCF and Deutsche Bahn, respectively. This scale brings benefits, which we are leveraging. Platform One underpins the transactions of multiple tenants, from our branded businesses to our retailing partners. As transaction volumes grow, our investment in the platform becomes increasingly efficient. We can integrate new supply and roll out product innovation more quickly, leveraging a scaled customer base across our geographies.
As we scale, we can increasingly turn our focus to monetizing our customer relationships to drive faster revenue growth. All of this is driving our business to outperform, which Pete will discuss shortly. Before I hand over to Pete, let me update you on the regulatory backdrop. Starting in the U.K., where the new government is providing more clarity, stability, and full momentum for the industry. First, they have reset and stabilized relations with the EU, ending the long-running industrial dispute. They have kicked off their nationalization agenda, which, as a reminder, focuses solely on bringing rail operators into public ownership over the next few years. Importantly, it does not extend to train leasing companies, nor to retailers like Trainline. They have also launched Shadow GBR to unify track and train, and we're already engaging with them around how to drive industry growth.
Finally, they remain supportive of an independent retail market, committing again through the King's Speech to accelerating the rollout of innovation, and we have recently been invited into a consultation on Digital PAYG trials in urban areas outside of London. In Europe, the EU continues to prioritize initiatives to enable growth in rail travel. It aims to triple high-speed passenger volume by 2050 and is championing carrier competition to encourage modal shift. As we've seen in Spain, this has had the effect of reducing fares, increasing choice, and growing passenger numbers. Furthermore, the EU has shown strong support for third-party ticket retailers, with a recent report from the European Commission citing their value in promoting carrier competition. With that, I'll hand over to Pete to talk through our financial performance.
Thanks, Jody, and good morning. Before I step into the financial performance for the group, I will briefly unpack the performance of our business units. Starting first with U.K. consumer, net ticket sales grew 15% to GBP 2 billion as our investments continue to support the adoption of digital tickets, with e-tickets now 51% of all industry sales, up from 46% in H1 last year. It also reflected a market that's returning to normal, with industry passenger volume back to near pre-COVID levels, including the ongoing return of commuters, and fewer strike days, which were also less severe in their impact. I'm pleased to say our trading since half year has remained strong, and in addition, the expected headwind from Transport for London's Project Oval expansion is now delayed until next year. International net ticket sales grew 6% to GBP 583 million.
As Jody said earlier, the strongest performance came from markets with the greatest levels of carrier competition, Spain and Italy. By innovating on our customer proposition and investing in brand marketing, we delivered net ticket sales growth in these markets of 23% year- on- year. Net ticket sales across France and Germany slowed, reflecting our decision to pause brand marketing in France until we see more widespread carrier competition. Similarly, industry-wide changes to the presentation of Google Search Engine results, as we first discussed a year ago, continue to subdue web sales in international consumer, with the impact most pronounced in foreign travel. However, growth in app sales remained strong, with the share of our transactions through the app increasing to 67% from 62% last year. Net ticket sales within Trainline Solutions grew 19% to GBP 449 million.
As a reminder, this business unit provides B2B retailing capabilities to rail carriers and other travel platforms. For rail carriers, our IT carrier solutions business delivered a strong performance, supported by feature releases and market recovery. Our B2B distribution business also performed well, increasing our global API sales in both the U.K. and Europe. To date, Trainline has focused on net ticket sales as the primary driver of revenue growth. However, as the business scales, we are now more effectively monetizing our customer relationships, which in turn is growing non-commission revenue. This includes launching ancillary products and services within the booking flow. In H1, we saw strong growth in demand for hotels, particularly in Europe. Similarly, we saw good take-up of travel insurance products, most notably in the U.K.
In aggregate, the ancillary revenue generated from these two lines was three times larger than last year, and I see further opportunity ahead. Bringing that together, in the first half, group net ticket sales grew strongly, up 14% to GBP 3 billion. This was ahead of our previously stated guidance for the full year. Revenue grew 17% to GBP 229 million, again ahead of our previous guidance, reflecting the mixed effect of faster growth in U.K. consumer as well as non-commission revenue generation. Gross profit was up 20% to GBP 181 million. This outpaced top-line growth in part due to the reduction in the fulfillment fee we pay to the U.K. rail industry when a customer uses a barcode ticket.
Turning to costs, marketing declined 9% to GBP 34 million in the half, reflecting our continued investment to drive efficiencies in new customer acquisition, as well as our decision to pause brand marketing in France. Other admin costs were up 15% to GBP 65 million, with increased system costs reflecting our greater scale, and bringing this all together, we are seeing the benefits of Operating Leverage, with Adjusted EBITDA growth of 44% to GBP 82 million, outpacing Net Ticket Sales and revenue in the first half. As we scale, we are reaping the benefits and efficiencies of hundreds of millions of transactions coming through Platform One. In the last year alone, our cost-to-income ratio reduced five percentage points, during which time we continue to invest in international, where we have now built the foundation of a significantly enhanced user experience and product-market fit.
This now gives us scope to further optimize our cost base, which we are doing in H2, including reducing headcount where it makes sense to do so. We expect this exercise will generate around GBP 12 million of annual cash savings, of which GBP 8 million will be operating expenses, and we expect the cost to deliver these savings to pay back in less than one year. The business delivered strong cash generation in the first half, with operating free cash flow of GBP 100 million, driven by increased EBITDA plus working capital inflows, partly offset by CapEx, reflecting investment in products and tech innovation. As we generated more cash, our leverage further reduced to 0.2x EBITDA, and Trainline would have been net cash positive had we not bought back GBP 46 million of shares in the first half, in line with our stated capital allocation framework.
To date, we have repurchased and canceled GBP 83 million of shares, or around 6% of issued share capital. Altogether, I'm delighted with our performance in the first half. And as you will shortly hear from Jody, our team is delivering against a clear strategy. Trading has remained strong in the second half, and we are now optimizing our cost base. As I look ahead, we are well positioned for further growth. Having already improved guidance for this fiscal year in September, we again increased our guidance in October. We now expect net ticket sales growth of 12%-14%, above the original 8%-12%. Revenue growth of 11%-13%, originally 7%-11%. And adjusted EBITDA as a percent of net ticket sales of around 2.6%, originally 2.4%-2.5%. And today, we have announced we expect our EBITDA margin to continue to widen next year too.
This reflects the benefits of operating leverage, as well as our disciplined approach to managing costs, and it's despite the 25 basis point reduction in our net commissions in the U.K., as we agreed back in 2022. We now expect EBITDA as a percent of net ticket sales of between 2.6% and 2.7% in fiscal year 2026. Thank you, and I'll now hand back to Jody.
Thanks, Pete. Let's now talk about the progress we're making against our strategic priorities, starting with the U.K. consumer. We operate in a large rail market in the U.K., worth over GBP 11 billion. In the last 12 months, online sales were over GBP 6 billion, the majority of which were e-tickets. However, over GBP 3 billion of sales remained offline. Those are mostly tickets bought at the train station on the day of travel, primarily for commute and short-distance journeys.
We believe we are uniquely placed to expand the market, driving modal shift to rail and grow adoption of online and digital ticketing. This comes down to having all the tickets, fares, and value-saving features in one easy-to-use mobile app, with strong brand affinity and trust from our customers, reinforced with our scale and expertise to continue to invest and improve our proposition, together with a scalable tech platform that's purely optimized for the complexities of rail travel. We are the scale retailer in U.K. rail. As you can see on the chart, we are the number one traveler altogether, with 12 million monthly active users. That equates to more than 60% of people in the U.K. who travel by train each month. And we have big ambitions to grow further in the U.K..
We focus on four key priorities: growing supply, providing an excellent user experience, building demand, and increasing customer lifetime value. In terms of supply, we provide all the carriers and fares in one place. We also provide a comprehensive range of value-saving products and features, helping customers to unlock value. We are the home of SplitSave, the original at-scale split ticket solution, saving customers GBP 13 per booking on average. And we have over 2 million Digital Railcard customers. That's about a third of all railcard users in the U.K. who are saving money seamlessly when booking their rail travel. We are priming our mobile app to better serve commuters, a segment where we have historically underindexed. This is particularly the case in season ticket sales. As a reminder, until a few years ago, no carrier accepted digital seasons on their respective networks.
The rollout since then has been gradual, and today, just over half of all journeys are enabled for digital season tickets. Nevertheless, we've been making good progress in growing sales of digital season tickets. On routes enabled for a year or more, 21% of customers now benefit from using digital season tickets, with no need to carry around a physical copy. The commuters who instead buy their ticket on the day of travel, we are making it quicker and easier to buy through the app on their way to the train station. First, we can use geolocation technology to determine which station the customer is walking up to. Leveraging machine learning, we then surface the most relevant route suggestions from that particular station at that time of day.
The customer can buy a ticket for one of those journeys in a few clicks, and all with the assurance of our Best Price Guarantee. This is helping support the recovery in the commuter market and grow our sales, with our segment share reaching 24%. Our third priority in the U.K. is to build customer demand, with marketing campaigns that focus upon our value and commuter propositions, often with an underpin of sustainable travel. Under our flagship brand campaign, Great Journeys Start with Trainline. In the first half, we told customers how we can help them save money, including our Best Price Guarantee when buying tickets on the day, and we're trialing new partnerships to grow demand too. For example, we recently partnered with online bank Monzo to offer their customers our digital railcards. As a reminder, digital railcard users are some of our most frequent and sticky customers.
These campaigns have contributed to active customers in the U.K. growing 12% year- on- year. As we grow our customer base, we are increasing the frequency at which those customers transact through us, further driving our sales growth. As you can see, the longer the customer is with Trainline, the more frequently they transact through us. That's true across newer as well as older cohorts. The customers we've acquired since COVID are transacting more frequently than customers acquired prior to COVID, and now represent over half of our transactions in the U.K. Moving on to international, the rail market in Europe represents significant headroom for Trainline, with an addressable market worth EUR 44 billion. Within that, carrier competition is due to expand in France, Italy, and Spain over the next two years and beyond.
We believe we occupy a unique position that we can leverage to win in Europe, with a clear remit to aggregate carriers across multiple geographies, the expertise and scale to invest in new markets, and our scalable tech platform. We plan to increasingly position ourselves as the aggregator of choice as carrier competition becomes widespread across Europe. We're making strong progress against those plans, focusing on growing supply, enhancing the user experience, building demand, and increasing customer lifetime value. When it comes to supply, we aggregate carriers in one highly rated mobile app. This brings clear benefits to our customers, who can search all the options to find best value. And through TopCombo, they can stitch together different carriers for return and multi-leg journeys. We also bring distinct benefits for new entrant operators.
By rapidly adding their inventory as they launch services and leveraging TopCombo, we can put more passengers on their trains more quickly, accelerating the payback on their investment. We're now testing how we can increase the prominence of new entrant brands. For example, within our search function, we recently elevated Ouigo as the best-placed option between Madrid and Barcelona, for a test group of customers, notably increasing their sales versus the control group. So as we hone our aggregation playbook, we are also creating the virtuous cycle of the marketplace. And as we add more inventory, we become more attractive for passengers. And as we attract more passengers, we become increasingly relevant for rail operators. As Pete mentioned earlier, we have now significantly enhanced our product-market fit in international, giving us scope to optimize our cost base. However, you should expect us to continue innovating at pace.
In our core markets, we continue to create a unique proposition with exclusive products and features aimed at domestic customers. In France, we became the first and only aggregator to integrate Pass Rail, discounted tickets, giving younger customers cheap travel during the summer months.
In Spain, we are the first and only aggregator to offer Cercanías, urban and suburban rail travel. And in Italy, we're the only app to auto-apply promo codes where applicable discounts for train tickets are available, saving customers on average EUR 20 per high-speed booking. While improving the travel experience for domestic customers, we continue to enhance our offering for inbound and cross-border travel. This includes our recent launch of Eurail Passes. These are multi-leg rail tickets, primarily geared towards leisure travelers touring around Europe. As I look ahead, I remain excited by the prospect of our core European markets liberalizing and what that means for Trainline.
Let's start with the Spanish market, which already has four carrier brands in operation. On the top three high-speed routes in Spain, these carriers compete directly with one another. And that competition continues to expand with low-cost new entrant Ouigo set to launch services from Madrid to Seville and to Malaga by the end of this year. What's happening in Spain is coming to Italy and France too. In Italy, Renfe backed Arenaways and SNCF are planning to launch from 2026. In France, Trenitalia, who already runs trains between Paris and Lyon, are set to launch services between Paris and Marseille next year. Following that, Renfe are due to launch services on both routes. And thereafter, three new carrier brands are set to launch high-speed services across France: ilisto, Le Train, and Proxima.
These new challengers are already ordering rolling stock and obtaining the regulatory clearances needed to operate train services in France. As we've shared previously, our progress in Spain creates a highly positive read across for when we deploy our playbook in Italy and France. The first Spanish high-speed routes liberalized three years ago. Since then, passengers have enjoyed more choice and significantly lower fares. In turn, passenger volume has risen dramatically, with new entrant carriers quickly taking share. By honing our aggregation playbook, we are growing three times as fast as the market on each route, and we have doubled our market share to 12%, reaching as high as 16% on Madrid to Valencia. A key part of our playbook is investing to grow brand awareness of Trainline as the market aggregator.
In Spain, we use innovative ways to capture attention, including whole-station takeovers, Trainline-branded music festivals, and most recently, sponsoring Real Betis' Seville-based football team. This coincided with Ouigo's imminent launch of services from Madrid to Seville. All this has driven up brand awareness in Spain to 25%. That's over three times where it was two years ago when we launched our first brand campaign. As our brand awareness grows, so too does our customer base. In the last 12 months, over a million customers in Spain transacted through Trainline, and those customers are becoming more engaged with Trainline too, with 50% being repeat customers in the first half. As a result, our Net Ticket Sales have tripled over the last two years. Here's a quick video that brings to life some of the progress we're making in Spain. Finally, turning to Trainline Solutions.
As you know, this business unit leverages the strength of our single global tech platform, Platform One, to support our travel partners. For white-label carriers, we continue to make available products and features to enhance their mobile apps. This includes split ticketing and travel companion features. And we are actively engaging in several carrier tender processes for their online retailing solutions. This follows the cancellation of the previous government's plan to create a centralized retail app and website. For B2B travel partners, we are seeing sales increase through our global API. Here too, we are actively seeking and winning new business, including from notable clients like SAP Concur. At the same time, we continue to amp up our own branded B2B offering.
In May, I discussed how Trainline has brought together our business and consumer app, meaning customers can now flick between their businesses and personal travel while keeping their booking separate. Since then, we've enabled client company admins to book train travel on behalf of their employees. And we've allowed clients to embed travel policies into the app, giving them greater control over their travel spend. As you know, Platform One underpins our whole business and increasingly leverages AI and advanced machine learning to improve the user experience and reduce our cost base. It also provides AI-driven tools and features that reduce friction and remove complexity for customers who are on the go. We see generative AI as additive to what we're already doing in this space. And so we are developing proprietary AI systems within our domain.
This is widening the opportunity to create smarter and more personalized experience, including the future in the future and end-to-end personalized traveler assistance. So watch this space. Before we open the call to questions, let me recap on some key takeaways from today's presentation. In the U.K., as the number one traveler, we are making great progress in driving adoption of rail travel, while digitizing the GBP 3 billion of sales still made at the station. At the same time, we're getting increasing clarity on the direction of the U.K. rail industry. In Europe, we are further honing our aggregation playbook, particularly in Spain, the most liberalized market in terms of carrier competition, where our net ticket sales have tripled in two years. This creates a highly positive read across for when we deploy our playbook on routes in Italy and France as they liberalize over the coming years.
Overall, the business has delivered an excellent performance in the first half, reflecting the progress we continue to make in delivering for our customers in the U.K. and across Europe. Topline growth was very strong, with our growth in profitability and cash flow generation faster still, reflecting the increasing benefit from operating leverage. Therefore, we have again increased our guidance for this fiscal year with strong growth and increasing EBITDA margin that will sustain into next year. Thank you very much for listening. I'll now hand over to the operator for questions. When asking, please state your name and your organization.
Thank you. If you would like to ask a question, please press star, followed by one on your telephone keypad now. Please ensure your device is unmuted locally, and if you change your mind, please press star two. Our first question comes from Ed Young with Morgan Stanley. Ed, your line is now open. Please go ahead.
Good morning. It's Ed from Morgan Stanley. Three questions, please. First of all, on the regulatory side, you mentioned the consultation of the Pay As You Go trial in the King's Speech. What kind of timeline do you see for the potential implementation of that should the consultation be successful? And then what kind of impetus and potential timeline do you see around the other areas you've flagged? So digital season tickets being expanded and automated Delay Repay. My second question, you've seen good growth in non-commission revenue in both the U.K. and international. And you talked to both hotels and insurance in the presentation. I wonder if you could talk a bit more broadly about the scale of that opportunity. How much further is there to go in areas like partnerships? Or are you sort of already on the main areas you think are addressable?
And then finally, just for clarification, the Project Oval expansion, you've said it's delayed until FY2026. Do you expect any change to the scope of that impact going on with the delay? Or is it just the timing of that implementation? Thank you.
Thanks very much for the questions. We'll sort of pick through those between Pete and myself. As it relates, first of all, to the Pay As You Go kind of consultation process and ultimate kind of a rollout where customers will be able to use it, I think we probably need to see this as a multi-year journey. I think the trials over the likely coming year, I think, will inform that process, and I suspect we're looking at kind of multiple years before we got to the point where this was an at-scale product that kind of customers had in their hand and were using.
But we are definitely encouraged that we're now moving into a trial phase, which is kind of critical for the development of this product to get it into kind of thousands of users' hands and to get it right and ultimately design a scheme which we think will work for kind of customers throughout the country. As it relates to digital seasons specifically, we've got just over half of the addressable market, as I said, online there. There's really three TOCs where most of the remaining digital seasons would be kind of rolled out from, if you like, when those TOCs adopted it, and if you think about kind of Greater Anglia, GWR, and SWR being the three TOCs that constitute most of the remainder, we don't have a timeline as it stands.
I think probably the way to think about it was as they were brought into public ownership. That would be an obvious moment where potentially the government would choose to push those products forward. It could, of course, happen earlier, and then let me just pick up on the fourth question around Oval expansion, and I'll pass to Pete for the hotels question. As it relates to Oval expansion, we don't believe a change to scope. We just think it's a series of kind of operational delays, and so we're expecting that phase I of the first 50 stations to be kind of early next year, and then phase II, which is kind of the next 50, to be beyond that. We don't have kind of concrete timelines, I would think, over the following year potentially, but that's some of the best guidance we can do at the moment.
Pete, do you want to pick up on the hotel and non-commission revenue point?
Yeah. So we've made very good progress over the last 12 months in these two verticals. And I still see some opportunity ahead as well as we further optimize the implementation. Really, the success boils down to finding the right way, the right time, the right moment to share it with someone. Of course, you don't want to interrupt someone's commute journey with a hotel. And that's the sweet spot that we've found here. And I think there is a bit more juice still to go on these two. And we'll continue to explore other opportunities where there's a kind of synergy between two verticals. I don't know, maybe experiences or something like that. We'll find some way of scaling and testing a learning way there as well.
So yeah, we'll continue to innovate in this area. Thanks for the question, Ed.
Thank you.
Our next question is from Alistair Johnson with BNP Paribas. Alistair, your line is now open. Please go ahead.
Morning, guys. Thanks for taking the questions. Firstly, you mentioned getting more clarity from the U.K. government generally. So I was wondering if you had sort of further color specifically on what the government meant or Labour Party meant when it originally talked about reducing the number of platforms, online ticketing platforms in the U.K., or what it intends to do on ticket simplification? And then secondly, your growth in Italy and Spain is very clearly being offset by the declines in France and Germany. I think I'm right in saying we lapped the negative impact from that in the second half of this year. So should we expect kind of an acceleration in international from now effectively? And lastly, I just wanted to ask more about the B2B distribution deal that you mentioned at the end of the presentation. Kind of what really are those? What are you providing?
How do you monetize that, I guess? Thank you.
Thanks for the question, Alistair. I'll start with the GBR point and then pick up Spain, Italy, and then hand over to Pete. I think it's probably just worth pulling back a little bit on sort of the broader Labour rail agenda just to kind of level set and then kind of dive a little bit into what we're seeing around the retail environment, and I think, as I said in the PowerPoint, I think where we're getting to here is we're getting increasing clarity with regard to their strategy, which was a sort of reminder they launched in April, back in our offices, and I think it's an agenda that lasts the full term of the government, which is helpful, I think, given sort of previously we were dealing with things that were more focused on the sort of next 12 months.
That provides increasing stability for the industry, but also for third-party retailers like ourselves. I guess the note here is everyone's familiar with things tend to move fairly slowly as it relates to kind of rail and the government engagement here. I think what they've done is lay out where they want to go over the term of this government. The key activities we see going on there within kind of the GBR area is the first is designing what that looks like, kind of creating a blueprint of how U.K. rail should be constructed. That's pretty complicated because of the operational, financial, and legal complexities of delivering that and designing it. We kind of anticipate that may take 12- 18 months to come up with that blueprint. Secondly, there's obviously the nationalization of the TOCs that is going on.
And they've laid out an agenda for that, exactly how long that takes to bring them all into the DOHL. We'll have to wait and see. I suspect it takes the majority of the current parliament to do that. And then I think third, and this is kind of important, they want to deliver, of course, meaningful impact for customers that isn't all predicated on, if you like, the next term of government over the coming months and years. And those short-term wins, I think initially were around getting to resolving the disputes and getting the trains so they weren't being canceled so people could trust rail. But increasingly, there will be things that I think we can engage and work with them around. And some of these were in the kind of commitments around the King's Speech.
We've already kind of touched on digital seasons, but digital Delay Repay and then the idea of kind of a mobile Pay As You Go would be other areas that they've referenced that they'd like to deploy. And that's an area where we can really engage and deliver good things for government. So that's sort of the high level where we see GBR. But then to really turn to your kind of questions here around the broader retailing environment, I'd just say upfront, back us to ultimately compete and win however the environment kind of evolves. I think as we think forward over that period of time, I think it's unlikely there will be 20+ apps in a few years' time. And so we do expect some form of consolidation.
And we kind of think they'll work out what that looks like, if you like, during the design phase that I've sort of said is going on right now. And I wouldn't be surprised if there is some noise around that as they think through what that might look like and they consult more widely. But I would be surprised equally if anything really happened in the next two or three years in that area. And I think, as I've said before, what I said two years ago on this was the most likely thing is we'll be here two years later and nothing will have happened. And I suspect that's the most likely thing in two years' time, nothing will really have happened. Whatever does evolve, we continue to invest with our sort of smarts, our customer trust, our base of railcard users and digital season ticket users now.
We feel very well positioned for whatever competition arises there. Just to pick up on your point on simplification around fares, look, again, there is an interest in this broader area of looking at tickets. It has been looked at a number of times over the last three years. The intent has always been can we simplify ticketing for customers, make it easier to understand? I think the challenge inherent in that is that that complexity is really around price discrimination and charging different groups, either discounts or enhanced fares. Therefore, to simplify, you either have to kind of invest quite a lot of money and increase the subsidy so everyone's either sort of flat or a winner, or you have to charge a lot of people more and they get losers.
I'd be really surprised if there's the political will to make a lot of losers here. There's definitely been a statement that they aren't going to be increasing the subsidy. While I do think that we'll see some evolution here, kind of what we saw in Single, that pricing from LNER, I suspect, could be more broadly rolled out. I don't think we'll see anything radical as it relates to simplification just because it's too expensive. If I take the Spain, Italy question and what we are seeing there as it relates to kind of France and Germany, yeah, you're right in that we have definitely seen some very strong growth in Spain as we've kind of laid out today. As it relates to Italy, Italy growth is definitely positive. It's not at Spanish levels.
I think just to kind of emphasize what I said, we are very excited about the moment that SNCF will enter Italy. Potentially, we expect with their Ouigo branded trains kind of along a wide number of routes. And that will be a pretty transformative moment for the Italian market in terms of bringing down fares. And it will position us very nicely as it relates to Italy because we've worked a lot with Ouigo Spain. We'll be able to work with Ouigo Italy. But we start from a far higher base in terms of brand awareness, in terms of understanding of our product, and in terms of our kind of feature set. So over the next 12 or so months, we will be focused on making sure that works. And then as it relates to France, yes, you're right. And we've been pretty open about that.
We pulled back French brand spend just over a year ago. We do see that lapping out. But we don't expect the acceleration there that we've seen in Spain and Italy until we see more, if you like, the arrival of those challenger brands. Now, the good news is that is happening and has already happened in Paris. Lyon, Paris, Marseille is coming. And we see that Renfe is entering that market. So that's great. But that's maybe like a fifth of the total market. We need to see the other players launching on some of the other lines down to Bordeaux, to Strasbourg, to Lyon, and so forth before we see the sort of Spanish and Italian levels.
Germany is very much a different market where we don't yet have the kind of commission and broader competitive framework that will allow us to invest in the way we plan to and have done in the other three markets. So I suspect that growth will be essentially pretty low for the next year or two. Then we would, beyond getting the right commission structure, need to see stronger challenger brands coming in so that we could really invest behind that and offer kind of the aggregation playbook, which looks like it will be a few years off. Pete, should I pass back to you on the broader distribution point?
Yes. Thanks for the question, Alistair. So at the heart of the solution here is an API that allows people to book rail travel.
And that can be through their own system that is then pushed onto a corporate or an end user. Or it can be through an agent. And it both allows people to book, but also, of course, to make changes because business travel, there's often changes to plans and refunds and things like that. And really, the benefit here for the travel management company is that by coming to Trainline, they get the benefit of aggregating all that supply together. So all that work that we've done for consumer customers, we also get to package up and sell to business travelers via travel management companies. So they only need to make one connection into Trainline. And then as the different APIs evolve and adjust for all the rail companies, we're doing that lifting work for them. And they just get to stick with the one API.
So they get that benefit from a tech perspective. And then in terms of the economics of how this works, of course, we have a relationship, a commercial relationship with the travel management company. And they then, in turn, have a relationship with corporates. And so we're just part of that ecosystem, if you like. And then if I kind of step back from all of that, we have been encouraged in the last 12 months with making some progress in this space. Coming out of COVID, a lot of travel management companies have really pared back, as you would imagine, in terms of investing. And rail was one of those areas that they didn't really turn to. But increasingly, we are seeing more conversations. And the results are beginning to come through in a positive way as well, which is very encouraging. Thanks for the question, Alistair.
Thank you. Our next question is from Sean Kealy with Panmure Liberum. Sean, your line is now open. Please go ahead.
Morning, everybody. Thank you for the presentation and opportunity to ask a few questions. I've got three if I can. First of all, there's a little slide in there talking about competition. In particular, I'm curious how or if there's anything you guys would call out with respect to Uber, TrainPal, and then in particular, obviously, Uber have their Uber One subscription where they're trying to combine different offerings across a lot of different verticals. I'd love to get your views on that. Secondly, we've talked a lot about Spain so far. Could we also talk a little bit about Italy? I think I understand that the market is sort of in a bit of an in-between stage between Spain and France. And then just finally, with respect to new guidance, am I right in thinking that's a bit of cost optimization?
Could you talk about how that would flow through the financial statements, please?
Sure. Let me pick up there, so we'll start on the Uber point, so look, as a reminder, in the U.K., Uber launched around about two years ago now, and there's obviously been fairly significant investment, particularly in their go-to-market strategy, and you've seen fairly significant takeovers of London terminuses, which was actually kind of outside of London in the second round that they did that, and they've done a lot of notifications and kind of CRM stuff to their existing base, and obviously, they've had the 10% credit kind of kick back, which is a pretty aggressive go-to-market strategy. We triangulate, and I don't know the exact number, but we triangulate there at about one and a half points hovering around that area in terms of market share.
And I think if you sort of asked me three years ago if the number two travel company was going to enter and disrupt the rail generally, I would have potentially anticipated that they would have had more market share at this point. So look, I take this as sort of validation. I'm really pleased with the way Trainline's responded and the teams have responded. And I think it speaks to underlying kind of the brand affinity, the trust that our customers have in us. And overall, our overall feature set has proved very compelling. And I think they've been challenged. So the kind of numbers speak for themselves there. I think the other point, I guess, the kind of new thing to note here is that they've launched in Spain as well. But as yet, they haven't really deployed the full go-to-market suite of activities.
We'll have to see what they do. They do have the 10% credit. I think the kind of other couple of thoughts as it relates to Spain is they are not the number one ride-hailing app there. They are in competition with Cabify, who are the number one. And so they'll have a little bit more kind of difficult decisions about where they divert their resources between trying to promote rail versus the core product. And actually, we've formed a partnership with Cabify that's working pretty nicely in terms of looking at their base and offering them travel. And I think there's some sort of symbiotic relationship within that. And then the broader sort of point on combining transport nodes, I think overall, I think the results speak for themselves. We increasingly are looking at things like those partnerships and ways we might be able to do that.
So as it relates to Italy, yeah, Pete, do you want to speak briefly to Italy?
Yeah. So if I understood the question, I think it was around how we look at the three different markets and the kind of stage of investment we're at. And really, as you've heard today, Spain continues to be really front and center. It really continues to be very dynamic. We've got more routes opening up into the south. And actually, CNMC have announced that they want to look at introducing more competition up into the northeast, northwest as well over time. So that's kind of our focus from an investment perspective. And we're experimenting and learning from a brand perspective. At the other end of this scale, if you like, we've kind of got France, which, as Jody's just said, is in more of an incubation stage until more competition and aggregation arrives on the tracks, at which point we'll continue to invest there.
Italy kind of sits somewhere in the middle. We've obviously got two premium players that are operating on high speed. That has allowed us to really make good progress in Italy. The growth is a little slower than it is in Spain. What will really set that market alight is when SNCF enter the market in 2026 and bring perhaps their low-cost brand, Ouigo, with them. That will really change the markets. The great thing about Italy is that the investments that we've made to date have really pushed our brand awareness up to the high 30s at this point. We'll be in a much better position at that point to really make the most of the increased aggregation there. Whereas in Spain, we started really from a very low base once that market started unfolding.
So that's really where Italy sits overall. And then the last one on cost optimization. Yes. So I think the mechanics are relatively simple in terms of how it hits the P&L. So it's a GBP 12 million cash saving that we've announced today. GBP 8 million of that fits into EBITDA. And then there's a CapEx saving as well. But really, the step back here is how we've really continued to benefit from scale here and how the operating leverage is dropping through. And if I zoom out and think about where we were three years ago, we made that decision to increase our investment to make the most of the opportunity in Europe. And we've made really good progress over that time. We've more than doubled net ticket sales versus pre-COVID. But really importantly, we've significantly improved the product market fit for Spain, Italy, and France.
So that foundational investment is somewhat complete. And it looks much more like the U.K. experience from there. And then looking ahead, we're now in a position to be able to really tailor our investment going forwards, perhaps on things like how we further build out our aggregation playbook in Spain and then take that into Italy and France as it emerges. And we're able to do that with a slightly skinnier team than we've had to date. And that's where some of these savings come from. Thanks for the question.
Brilliant. Thank you very much, guys.
Our next question is from Ciarán Donnelly with Berenberg. Ciarán, your line is now open. Please go ahead.
Yeah. Thanks, guys. A few more just for me. I guess, firstly, just going into France a little bit more and the pause in marketing spend, I guess you've talked about needing to see more competition. Could you kind of give us some context when you think that might come through and when we should expect a reacceleration of marketing spend in France in particular? And I guess the second question is more conceptual. Just at this point, there's less competition in these countries. I mean, do you think perhaps in terms of capital allocation, now is the time to build brand awareness whilst you might not see the near-term financial impact? Obviously, the long-term benefits of building brand whilst competition is low could obviously drive significant value over time.
And then thirdly, just in terms of the U.K. consumer business, how should we think about the relationship between revenue and net ticket sales growth? I mean, do you think we should expect revenue to continue to outpace net ticket sales? And that's, I guess, excluding the impact from the commission reduction in 2025. Thanks.
Ciarán, thanks for those questions. I'll sort of take the first two together and then pass over to Pete. So I think as it relates to the question about when should we expect in France ultimately to see competition at rail level launching and allow us to play our full aggregation model, just to be a bit more specific on this. And as it relates to already, there's a Paris to Lyon from Trenitalia who obviously have been running that service for a number of years. And to give a sense, we might be selling as much as 30% or so of their tickets, that sort of level. So we're really instrumental in driving that. And we expect them to continue down to Marseille in early around 2025, which will open up another important route, route number three.
Then Renfe, we expect to launch on both of those routes. We expect next year as well. We never quite know how these things, when they're going to get passed, and what the operators don't know as well. So that will actually mean that we've got four carriers on those two, the number one route and probably the number three route, because SNCF themselves run their own Ouigo route. So there'll be four different carriers, which is great. And then there's three private players who are all in various states. So there's Proxima, ilisto, sometimes referred to as Kevin Speed, and Le Train. And I won't go through all of them today, but they are looking at linking services, Bordeaux, Rennes, Nantes, and then also Lille, Strasbourg, potentially another service to Lyon, and then more to Bordeaux and La Rochelle.
So what you can see is pretty much all of the principal high-speed routes in France will have competition. Now, those latter set I just described, I don't think anyone really knows quite when they'll launch. I think optimistically, we'd be looking at kind of 2027, but I think 2028 would be realistic. And to see the number of those routes arrive. What you can see there is that the end game here could be that there's something like six, maybe seven operators, and then there'll be more operators, as you know, potentially going between London and Paris operating in addition to all the cross-border different operators.
France could be a really, really exciting place because they really will need aggregation, not just at a route level, but at a kind of national level in the way that we've had in the U.K., where there was just such a kind of complexity of different providers and brands. People didn't even know which apps on which route, never mind which train on which route. I hope you give that a bit of a flavor of what that could look like and the kind of timelines that we'll work with. I think how to see how we'll act is we will always be ready for the next one. There's more routes launching in the next few weeks in Spain. More new services launching there when we're ready and promoting those.
And then your second question around brand building, yeah, we obviously think that we want to be not just kind of doing that, but we will build as we see those services coming. The great news is in Italy and France, we already have a brand that is more widely known than we are in, for example, in Spain. We have the kind of 30%+ , approaching 40% brand awareness. And as part of that, we will be leaning in France into the area of kind of Paris, Lyon, and Marseille as that competition has arrived over these next few months and we're already beginning to do that. So yes, we are, and we will take advantage of that, and we will be ahead of the competition in doing that. Pete, do you want to pick up on the final question? Yeah.
Thanks for the question on U.K. revenue and NTS. There are a number of drivers, so let me unpack them. I think the first thing to say is that the last two halves, we've seen a real step change in hotels and insurance, and that we've talked about a bit earlier in the call, and I do still see some opportunity ahead, as I articulated, but that step change is kind of somewhat complete with those two and will now have to lap through some of that, and then there are a couple of other drivers, and you'll all be aware that we are growing more quickly on the day travel where we don't charge a booking fee.
There's a natural headwind to take rate that has been masked by the ancillary revenues over the last two halves, but is still sitting there and will become a bit more obvious going forwards. And then you may also remember in May that I talked about the change of journey, sorry, the refund fees. That was an industry change that also affects Trainline. And if I look back at H1, we've got a partial half impact from that change looking backwards. And of course, looking forwards, that will then wash through more fully. And then finally, again, I think reasonably well understood, we'll have the commission change from April next year, which hits both revenue, and then there's an offset in cost of sales as well. So a number of moving parts there.
Net net, you're going to see a step down in take rate, even where we are continuing to innovate and drive ancillary revenues, which should go some way to offsetting that natural headwind we have from selling more on the day tickets.
Thanks very much, Ciarán, for the question. I think we're going to close questions there. Okay. So just for everyone, thanks again for all of the questions. Thanks for joining today. As Pete and I have said, we have delivered a strong financial performance in H1. We've improved our guidance. We're making significant progress against our strategic priorities, both in the U.K. and international. And we remain fully positive and energized about the growth opportunities ahead. Thank you.