Trainline plc (TRN) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for joining us here today for our full year results presentation. I'm Jody Ford, CEO of Trainline, and I'm joined by Peter Wood, our CFO. Let's first go through the disclaimer. On to the agenda for today. First, I'll give a quick introduction, briefly discussing the progress we've made during the year. Peter will talk you through our financial performance. I'll update you on how we're progressing against our strategic priorities. And then we'll take a closer look at Spain, which is now the most dynamic rail market in Europe and precursor for how carrier competition can shape other markets. And after that, we'll open the floor to questions. As reminder at Trainline, we have a clear purpose to empower greener travel choices. To achieve that purpose, our vision is to build the world's leading rail platform, making it easy for customers to find the right ticket at the right price and delivering that experience through our branded channels or through our travel partners. In doing so, we're making rail travel more attractive, encouraging millions of people to take the train rather than driving or flying. At Trainline, we have a huge headroom opportunity. Our addressable market is EUR 55 billion and growing, in part supported by industry investment plans and increasing awareness of the environmental benefits of rail travel. Within that EUR 30 billion are in markets where new entrant carriers are due to launch over the next 2 years. We believe we are the best positioned player to win in these markets and become the aggregator of choice. We have a clear remit to aggregate carriers in multiple geographies, unlike incumbent rail carriers. We have the expertise and scale to invest across markets unlike other independent rail retailers. And we have a scalable tech platform that's optimized for the complexities of rail travel, unlike big tech platforms operating in other verticals. As a result, I see significant runway for sustainable growth over the long term. Our performance this year reflects the progress we are making against our headroom opportunity. We grew net ticket sales by 22% and revenue by 21%. Together with the benefits of operating leverage and cost discipline, this drove a 42% increase in adjusted EBITDA and strong cash flow generation. In the U.K., we continued to digitize rail travel with industry e-ticket penetration rising to 47%, while our share of the commuter travel segment grew to 23%. In international, we surpassed GBP 1 billion of sales driven by liberalizing European markets, with Spain and Italy growing 43%. And in Trainline Solutions, we have continued to see a strong recovery, further leveraging our investment in Platform one. Turning to the upcoming general election in the U.K., recognizing this as a significant topic, we continue to engage closely with both leading political parties. In the last few months, we have gained greater clarity of their plans for the rail industry should they win the election. The conservative government published its draft rail reform bill in February. That will include the creation of GBR as an arm's length governing body that will unify track and train. And it gives strong support for open access carriers as a way to bring choice and value for passengers. The government has also shown clear support for third-party retailers. And in December, withdrew its plans for a central returning app and website. Labor launched its well policy at Trainline HQ last week. They commended Trainline's efforts to innovate for passengers, which is aligned with their own passenger-focused vision for rail. Like the conservatives, Labor announced that they would create GBR as the directing mine for the industry. However, in contrast, they plan to bring private operators under public ownership as their contracts expire. This would likely take a full parliamentary term to complete and would exclude the Scottish and Welsh carriers as well as open access operators. Labor would also seek a reset of industrial relations to address the long-running dispute with the rail industry. Looking specifically at retailing, Labor have recommitted to an innovative and competitive third-party market. Though yet to iron out their plans, Labor may look to simplify some of the 27 different carrier apps and websites in due course. However, they've made it clear that they have no plans for a centralized app and website. They've also a plan to review the complex fare structure to maximize passenger growth. At the same time, they intend to accelerate the rollout of innovation across the industry and plan to task GBR to work with Trainline to make that happen. This includes digital season tickets, automated delay repay and digital page you go, which we've been encouraging the industry to roll out for some time. So, there are real positives in the plan both parties have put forward. What's important beyond the election is clarity, direction and full momentum for the industry. Under the either scenario, we may remain fully confident we can execute against our long-term priorities in the U.K. And with that, I'll hand over to Peter 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 23% to GBP 3.5 billion as people in the U.K. continue to shift to digital tickets. e-tickets rose to 47% of all industry sales this year from 43% in the prior year. Growth was led by commuters and people booking on the day of travel, who increasingly benefits from Trainline's innovative set of products and features while long distance and leisure travel remain strong. Net ticket sales also benefited from the broader rail market recovery alongside a 6% fare increase. And while industrial action continued, the industry experienced fewer strike days this year, on an average, their impact was less severe. International net ticket sales grew 14% to GBP 1 billion as we positioned ourselves as the aggregator in Europe's liberalizing rail markets. The strongest performance came from the markets with the greatest levels of carrier competition, Spain and Italy, where further innovation in our customer proposition and marketing investment delivered net ticket sales growth of 43% year-on-year. Net ticket sales in France and Germany grew 3%, with France representing the vast majority of the volume here. This reflected our decision to pause brand marketing in France until we see more widespread carrier competition. Growth in app sales remained strong, with the share of our transactions through app increasing to more than 62% from 53% a year ago. Growth in web sales was slower, primarily due to Google launching trains within its travel module and suppressing organic search results, as we discussed in November. We have somewhat mitigated this impact by scaling our presence in the travel module to more than 3,000 routes across our core markets in Europe. Net ticket sales within our Trainline Solutions division grew 31% to GBP 785 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. For business travel, the industry continued to recover from a lower base. Bringing that together, the group achieved a very strong set of results with net ticket sales up 22% to GBP 5.3 billion, underlining the progress that Trainline is making against its strategic objectives. This was at the top of our previously stated guidance range of 17% to 22%. Our revenue increased 21% to GBP 397 million, ahead of previous guidance of 15% to 20%. This outperformance reflected the mix effects of faster-than-expected growth in U.K. consumer as well as growth in non-commission revenues across the U.K. and international consumer businesses. And gross profit was up 21% to GBP 305 million. Growth and profitability outpaced that of net ticket sales and revenue. This reflected the benefit of operating leverage and disciplined cost management. Marketing costs grew 4% to GBP 67 million, reflecting our continued investment to drive efficiencies in new customer acquisition as well as our decision to pause brand spend in France. Other admin costs increased 14% to GBP 116 million. Within that, people costs were GBP 69 million, which reflected the full year impact of increasing headcount in the prior year. Other costs were GBP 47 million, which was also higher, principally driven by growth in transactions, which grew faster than net ticket sales. However, we continue to engineer efficiencies to mitigate cost inflation and drive leverage, resulting in a 16% increase, far lower than the transaction growth. Net of these costs, adjusted EBITDA was GBP 122 million, up 42% year-on-year. At 2.3% of net ticket sales, this exceeded our previously stated guidance range of 2.15 to 2.25%. It also reflected the underlying international consumer business approaching breakeven this year, in line with our previously stated guidance. The business continued to deliver strong cash generation with operating free cash flow of GBP 91 million. This was driven by increased EBITDA plus working capital inflows. It was partly offset by GBP 41 million of CapEx, reflecting our ongoing investment in product and tech innovation. As we generated more cash, our leverage further reduced to 0.5x EBITDA, down from 1.2% in the prior year. And this was despite Trainline buying back GBP 28 million of shares as part of our GBP 50 million share buyback program. By the end of April 2024, we had repurchased GBP 38 million. And today, we've announced a new share buyback program of up to GBP 75 million to commence upon completion of the existing program. This is in line with our stated capital allocation framework of returning excess capital to shareholders after investing behind the business and managing debt. Finally, as I look ahead, we are well positioned to further grow. We continue to enjoy significant growth opportunities, including more people shifting to e-tickets in the U.K. and new entrant competition increasing the need for market aggregation in Europe. Group expectations for this coming year are as follows: net ticket sales growth of between 8% and 12%, revenue growth of between 7% and 11% and adjusted EBITDA as a percent of net ticket sales of between 2.4% and 2.5%. 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 our U.K. consumer business, where our priorities are to provide customers with an excellent user experience, build demand and increased customer lifetime value. Taking a step back, the U.K. is a large rail market worth over GBP 10 billion. We aim to expand that market, shifting more people on to trains. We also aim to shift more people to online and digital tickets. As you can see, online sales were almost GBP 6 billion, the majority of which were e-tickets. However, over GBP 3 billion of sales were offline. These were mostly tickets bought at the train station on the day of travel and primarily for commute and short-distance journeys. So, we are priming our mobile app to better serve those types of journeys. We continue to make good progress, unlocking value and removing friction for customers. We launched an improved price prediction tool, leveraging the scale of our data to accurately predict when fares are likely to increase and how many tickets are left at the current price. We improved ticket alerts, which flags to customers when tickets are available on their chosen route at their cheapest price. And SplitSave is now available on more than 80% of routes. As in Europe, the U.K. is seeing new entrant competition in the form of open access operators. Brands like Lumo and Sun Grand Union are increasingly competing within common carriers on selected long-distance routes. These carriers tend to be less well known. So, for them, we are a significant source of new customers. By taking learnings from Italy and Spain, we're enhancing our fair presentation so customers can easily compare prices and times between carriers. We are priming our mobile app to better serve commute and short distance journeys. We've now launched best price guarantee, where we promised to refund the difference if a customer finds the same on the day ticket cheaper elsewhere. And we continue to scale digital seasons with our digital season customers exhibiting more than double the retention levels of our customer base in the U.K. All of this is helping us take more share of the commuter segment now at 23% and grow into the $3 billion of off-line sales headroom. Our second priority in the U.K. is to build customer demand with marketing campaigns that focus upon value, commuting and sustainability. This has helped grow active customers by 13% this year. Under our flagship brand campaign, great journeys start with training. We told customers how they can save 35% on average when booking through Trainline. And our viral Trainline wrapped campaign gave every customer a personalized view of their sustainability journey, helping encourage greener travel choices. On to priority #3 in the U.K., increasing customer lifetime value. As we grow our customer base, we are increasing the frequency in which they transact with us with active customers now transacting almost 3 times a month on average. This reflects our focus on commute and short distance travel with on-the-day bookings now representing 2/3 of all transactions in the U.K., and it's driving growth in net ticket sales, as Peter has outlined. At the same time, we are nurturing ancillary revenue streams with add-on products like hotels and parking as well as enhancing ad placements within our channels. Turning to Trainline Solutions. This business unit leverages the strength of our single global tech platform, Platform One to support our travel partners. For business customers, we have brought together our business and consumer app. Customers can now flick between their business and personal travel while keeping their bookings separate. For white Labor carrier partners, we have added more customer experience features, including push notifications and bike reservations. We are actively engaging in several new tender processes from carriers for their online retailing solutions. This follows the cancellation of government plans to create its own centralized retail app and website. Within Platform One, we harness advanced machine learning to deliver data-driven features, including split save and price prediction as well as greater personalization. As I said 6 months ago, we see generative AI as additive to what we're already doing in this space. We've set up AI Labs to develop our own proprietary AI models within our own domain. By combining these models with industry data and our own unique customer data sets, we are widening the opportunity to create smaller and more personalized experience, smarter and more personalized experiences across the whole user journey. Let's now talk about the progress we're making against our growth strategy and international. Taking a step back to rail market in Europe represents significant headroom for Trainline's future growth. By positioning Trainline as the aggregator of choice, we are well placed to significantly scale our international business. While we operate across most of Europe, we focus on markets worth EUR 10 billion, where we have the strongest customer proposition today. They include the domestic markets with widespread carrier competition, primarily Spain and Italy, which together are worth EUR 6 billion. They also include foreign travel, which is worth around EUR 4 billion. This represents global customers from the U.S., U.K. and the rest of the world as well as some intra-EU cross-border travel. Markets beyond that, like France represent significant future opportunities for Trainline. We plan to increasingly position ourselves as the aggregator here to once carrier competition becomes widespread. We're making strong progress in our priority markets, which now make up 3 of our top 10 routes globally. This includes a new entry, Barcelona to Madrid at #3, growth growing from 11th biggest last year. We are creating a unique customer experience, removing friction and unlocking value when booking rail travel. We recently overhauled our fair presentation within the app, providing clear and simple information about each carrier and carriage class. This helps customers compare choices, particularly on routes with more than one carrier. We also launched best price guarantee in Italy, Spain and France. Similar to the U.K., we promised to refund the difference if a customer finds the same ticket cheaper elsewhere. And in Italy, we now find and automatically apply carrier promo codes for customers. We're investing to grow brand awareness of Trainline as the market aggregator. Prompted brand awareness has doubled since we launched brand campaigns in Spain and Italy. In Spain, it's gone from 8% to 21%, while in Italy has increased from 19% to 40%. At the same time, we are deepening our relationship with our customers. This includes encouraging more customers to download and use our mobile app given its superior user experience and transaction frequency benefits. In Italy, we became the second most downloaded travel app behind booking, while app share of transactions increased to 73%. This has helped grow overall transaction frequency as app customers in Italy transact almost 3x as often as web customers. We're also placing greater focus on monetization. We are growing foreign travel sales, which is typically a higher-margin business for Trainline. And we have introduced ancillary products into the booking flow, including hotels in partnership with booking.com. This has helped grow the underlying revenue take rate from 6.4% to 6.6%. Now, let's take a closer look at the Spanish rail market. Given its transformation in recent years, Spain serves as a useful template for what increased carrier competition might look like in other European markets. Spain has quickly become the most competitive high-speed carrier market in Europe. Since 2021, it has gone from having one long-distance carrier, the national incumbent Renfe to 4 different carrier brands with 2 premium and 2 low-cost brands, customers now have real choice. Carrier competition is transforming the high-speed rail market. The new brands have taken well over half of the market already. Average fares have fallen 50%, and that's helping to drive model shift to well with industry passenger volumes jumping 70%. However, with increased choice comes increased complexity for the customer. Let's look at an example to bring that to life. This is Maria, she lives in Madrid and wants to book a return journey to Valencia, a route where all 4 carriers operate. To compare the carriage, she could look at each of their respected apps, perhaps using a pen and some paper to cross-reference the different times and prices. Alternatively, Maria save herself the trouble and viewed Trainline. She can compare services across all 4 carrier brands and booked the right journey for her all in one highly rated mobile app, and now we've made that even easier. Top Combo allows customers to seamlessly stitch together different carriers for multi-leg and return journeys. In doing so, customers can optimize their booking for price and convenience. As you can see, by using Top combo and combining different carriers, Maria has saved itself over EUR 38. So clearly, it's great for customers. The Top Combo also allows new entrant carriers to sell more rail tickets in turn, helping them to grow share. By focusing on aggregating the competitive high-speed routes, we are growing quickly and taking meaningful share. Our share on the top 5 routes now ranges from 8% to 13%. This compares to sub-1% across Spain only a few years ago. As a result, our Spanish domestic sales have doubled for 2 years running. At the same time, we are driving an increasingly engaged customer base, as you can see. The proportion of sales coming from repeat customers has gone from 31% to 44% in just 2 years. Today, Spain is the only market in Europe where 4 carrier brands are competing on the same long-distance routes. But new entry carrier competition is also set to ramp up in Italy, France and in the U.K. in coming years. With 20 routes set to see new entrant carrier competition in the next 2 years, I believe this could support a golden age of rail travel. Let's look at how this might play out in Italy and France over the next few years. In Italy, 2 carriers already compete on its high-speed rail network, Trenitalia and Italy. This is due to increase to 4 over the next couple of years. In late '25, new entrant carrier Longitude arena race is set to arrive having submitted plans to run 1 international and 6 domestic groups. SNCF's low-cost brand WIGO is set to follow from 2026, and it's likely they will pursue their signature aggressive pricing approach. In France, carrier competition is relatively limited. Paris to Lyon is the most notable exception where SNCF and Trenitalia have competed since late 2021. Trainline net ticket sales on that route grew 42% this year, similar to growth across Spain and Italy, demonstrating how carrier competition can be a key unlock for our growth in France, too. This trend should accelerate with Renfe due to launch a Paris Lyon service in H2. And thereafter, new entrant carriers, the Tran and Kevin Speed are planning to launch services on REITs across France. Carrier competition is also set to arrive between London and Paris. It's a EUR 1 billion route that could liberalize as early as 2025, with various new entrants planning to launch competitor services to Eurostar. More Carrier brands should increase the competitive dynamic of the Italian and French rail markets in turn, capitalizing the need for a market aggregator like Trainline. Spain has proven to be the template for carrier competition with a considerable reduction in fares, a significant increase in passenger volumes and customers enjoying real choice for the first time. We've positioned ourselves as the market aggregator, and this is driving exceptionally strong sales growth. It's also allowing us to hone our aggregation playbook, building a head start for when other rail markets liberalize. As I said earlier, we increasingly 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 a scalable tech platform that's purely optimized for the complexities of rail travel. Given the headroom opportunity, our unique position and our experience to date in Spain, we see significant runway for future growth. So, before we open the floor for questions, let me recap on some key takeaways from today's presentation. In the U.K., we are unlocking value and removing friction to expand the market while focusing on digitizing the 3 billion station walk-up market. And as the general election draws closer, we are engaging closely with both leading political parties and getting increasing clarity on their plans for rail. In Europe, we are driving particularly fast growth in Spain, the most liberalized market in terms of carrier competition. This liberalization has a positive read across for how carrier competition should benefit other European markets. And we've built a strong head start. Overall, we've delivered an excellent performance this year with strong top line growth, increasing profitability and growing cash flow generation. And today, we've guided for strong growth in the coming year and announced a new share buyback program. Ultimately, this reflects the significant progress we are making in delivering for our customers in the U.K. and across Europe. So, thank you very much for listening. I'll now open the floor for questions.

Raise your hand if you would like to ask a question when asking please state your name and your organization.

It's Andrew from Barclays. Sorry to start. I mean an evitable question about labor a couple of weeks ago. Someone had to do that. I guess kind of curious, a big picture question first about what your kind of overall take on that was, it's obviously quite a detail, but quite a lot of nuance to this. So, it would be quite interested on your take on some of that nuance. And I guess the areas particularly a focus is kind of how much do you think they will reduce for the top websites? What kind of impact does that have, ticket price simplification? What does that mean? And I guess have you picked up anything about how the trains are going to get branded going forward? Are we still thinking there's going to be lots of different kind of top brands? Or is there going to be some kind of consolidation in terms of the branding for consumer season? And anything else if I was interesting on that kind of boarding Vegas the half hour.

So, look, let me lay out some broad thoughts around labor and then we can dig into a couple of the sub questions within that. I think for me, if I kind of have 3 key takeaways from what Labor announced last week, the first is it's going to take them a full first term of government to bring tax into public ownership, and I'll unpack that in a second. I think there's some really important principles of being established and kind of laid down by Labor should they get into government on how they would approach third-party retailing, and we can unpack that. And then I think there's some great opportunities in the short term around kind of potential partnership with Trainline and other third-party retailers. So, let me go back to the top. So, I think about this as a sort of broader arc. If you think what happened as we went through COVID and the challenges the industry faced, we moved from the franchise model with P&L to the concession model where there wasn't a revenue accountability. And then for various reasons, 4 relatively significant talks all moved into public ownership, and we have about 20% right now in public ownership. This is clearly taking that to the next step with a plan to take each of those franchises into public ownership as their franchise expires. And those data are fully available over the next essentially 3 years. I think that is another kind of consideration within that, which is the Department of Transport's ability to absorb those talks into kind of public control and to set up the body whilst setting up a shadow GBR organization. And our best understanding is to date, they've achieved about 2 per year as they do that now. Maybe they can get to 3. But the broader point here is it's going to take the full term to bring each of those talks into public ownership and set up the kind of financial legal incentive structures that will allow that to happen. And that's sort of very much how we think about it. And I think that means there's going to be a huge focus from the department in just making that entity come to life. And so, in that first time, I don't see there being a huge focus on doing a lot of other things, which I think is where one of the sort of supplementary questions went to. As in second category, we talked about in terms of important principles being established, I mean there's a couple of obvious ones here. They're very clear. They're not planning to launch a single app or kind of GBR app. And if you kind of remember when we went through the William's review, that was a kind of central tenet and the headline on the day, and we've got a lot of energy on that. And I think that was seen as a sort of kind of marquee part of it. That is absolutely not part of their plan, which is clearly important. And the other part was a commitment to a competitive retail market. And I think Louis Hague on the day spent quite a lot of time talking about the innovation that Trainline had brought to the market. And they are talking a lot about ensuring this is driven for the customer. And I think there's an appreciation of the value that third-party retailers like Trainline can bring and the innovation to do that. So, my take on that is building an app is not a priority for them. I'll speculate in a second on what that could become because that's where you're going, I think. And then the final one is the other key takeaway from the day is this focus on delivering, and I suspect they'll want to do it fast and kind of with momentum for customers in the short run. And specifically, they named a few things. So, delay repay, digital seasons, potentially exploring the mobile pay-as-you-go era. These are all things that we have been pushing out, as you know, over the last 2 or 3 years. And actually, she even talked about instructing GBR to work with Trainline and others to bring this to life. So, when we think about digital seasons, currently at 50% availability. My expectation is if Labor were to come into power, we'd be moving in an accelerated way for wider adoption of that and bringing delay repay to life, which is the #1 customer ask, which, as you know, at the moment, we're not able to offer. So, that's sort of broad principle. Then you asked a couple of sort of subjection of that and no doubt there'll be other questions. We can only hypothesize of what it might look like to reduce the number of top websites. And it's hard to even come up with a scenario here. I think in the context of taking a full first time to bring those to websites into public control. It's not inconceivable to me that you begin to see sort of regional agglomerations of top groups, right? And at some point in the future, and I'm sort of thinking into second term now if Labor were to win the first and then the second time, you would imagine ultimately, procurement exercises that began to sort of look at sort of, let's say, wider regional and I think GTR is not a bad example here, as you know that's a very big talk that really stitches together 3 or could be 4 different sort of sub talks. Not crazy, I think, to imagine a world like that, if you kind of look at the lessons learned from the cause process, it's far from straightforward. Both from a kind of legal, procurement and ultimately financial process on the basis that there would be a separation of the retailing unit, and they have to trade on a level playing field. But I'm really entering kind of speculative phase of the answer at this point. And then the branding point, I think, Louis, did say something as and I think she said, eventually, we would think about branding. That was her word. And what that tells me is, and look, you have to ask her for more answers and a long way from this actually coming to pass is, I don't think an incoming government is going to spend a lot of time repainting the trends and spending a lot of money on that out of cycle before they've got the talk together, into a single public ownership body in a world where there's sort of political risk of with painting trains, but not delivering on the broader promises and the things customers care about. And then sort of a final thought for me is, why do you people come to Trainline? I think it has almost nothing to do with what's painted on the side of the trains. It's because we are finding value for customers because we are supporting them on their journey because they sort of trust us to support their journey. That's why they come to us rather than what is on ultimately on the side of the trains. But apologies, that was a long answer, but there was quite a lot of it, and I suspect we get some supplementary questions in it. Good.

Ivar Kelly from UBS here. First one, I mean, you talked about the opportunity in Europe and given that it is fairly big, frankly. Taking a step back, I mean, what does that actually mean for your expectations of revenue growth going forward over the medium term? And secondly, building on the Solutions division, you talked about some new entrants coming into the market. And I'm sure you'd prefer tickets to go through your own platform. But what's the opportunity you have there ahead of you to operate the platforms for Kardspeed and the trend that you mentioned?

Sure. So, why don't we sort of buy up on the first one, and I'll come back on the second one. I think in terms of revenue expectations. I think what we've done here is you kind of have to break this down into the constituent parts of this sort of geos. And I think what we've laid out is in Spain, we continue to see very strong growth and expect that to continue over the coming years. The 43% average over Italy, Spain is a really good starting point. Italy, we can see how that will accelerate. There's a lot to play for there. And I think particularly egos entry into that market, and we anticipate 2026 is a re-accelerant in that market because it will be low cost, and I think that we've just seen what that does in Spain. We've got some nice case studies now where we've got on some of the REITs 2 premium players, but without Wigo, and we see the value of low cost and how that just changes customers' mind. So, I think that really drives a kick-up in Italy. Obviously, the market that you will see the biggest sort of inflection in our overall international numbers is France because it's of the scale of it. And we're going to have to sort of watch parity on its own right is it's sort of almost EUR 1 billion market not quite for that one line. And Renfe coming in, will accelerate that and it's on right, that's good. But we really need to drive that level of growth. We need route to down to Marseille to Bordeaux and probably Deliland then we'll get, I think, that inflection point in France where French customers will just need to look at all carriers when they're booking rather than just this Paris-Lyon corridor. And look, I think foreign travel continues. I don't think we expect a growth trajectory inflection we've seen as well, but we see double-digit very profitable growth to continue as more particularly Americans, but frankly, all over the world, Discover Europe is a great rail destination. I don't know, Pete, do you want to add anything on revenue?

Yes. I agree with, of course, everything Jody's laid out. We're obviously in a growth stage. And so we're balancing the pace at which we drive revenue versus the trying to grow net ticket sales. And of course, the majority of the focus is in is gain really strong foothold. And then over time, we can feather in more monetization levers as that scale comes through. I just don't want the friction to get in the way of the brand spend and the performance marketing spend that drives new customer acquisition in the meantime. And then more broadly, for the group, of course, the U.K. revenue drivers are also evolving. I think it's well understood that on the day tickets where we don't charge a booking fee means that the take rate begins to dilute over time because that's where we're growing a bit faster. There are a few other changes such as the refund fee that is an industry-wide fee has changed. So, that used to be a GBP 10 fee that all operators and retailers would charge. And that's now going to be a GBP 5 fee that came in, in April, which, of course, is a great thing for customers. I think if you had a GBP 20 ticket at GBP 10 fee is quite significant and a bit overcharged. That creates a bit of a headwind for us as well. And we'll continue to work on the ancillary revenues that we've been talking about, so hotels, parking and other things like advertising, which supports some offset to these headwinds. Net-net, I think there will be a step down in this coming year in take rate. I think consensus pre-transaction fee is in the range of about 8.2%, 8.3%, which I feel is about the right place. And, of course, we've got the retail review impact coming through into revenue next year as well. So, that we'll see a bit of a step down as well. And there are a variety of margin offsets that will come into play and still supports the leverage story that we have seen so strongly emerge as well. So, yes, those are some other thoughts on the revenue drivers. And then, new entrants?

Yes, new entrants. Look, they do represent opportunity. And as you can imagine, the high-level conversations in our curve pretty regularly. I don't think, at the moment, we think of them as a massive driver of that business a couple of years out. It sort of depends how just more broadly, they evolve. They often have a little bit of an older school thinking about their entry, no one specifically more on external branding rather than a digital approach. But I think over time, we see that the direction of the travel. And in the end, they're going to want to minimize the cost, and we have a great solution. But it's not something in the next 2 years, I think you're going to notice a kind of top line level within that division.

Marcus Diebel from JPMorgan. I would like to talk a bit more about competition. I mean, clearly, in the U.K., Uber, we talked about it a lot. We've seen them now for a couple of months. But what is the latest view? Do you think they're here to stay? Do you think there's a risk that they increase their offering, i.e., the discount offering of tickets, I mean without referring to them, I think more like how you actually think about this? Or is it just business as usual at this point? And then more importantly, also in the European markets, Spain, clearly a success story. Could you maybe tell us a bit more what your share within the other online aggregators is? I mean, you obviously showed impressive barge charts about some of the connections, but I think it would be interesting to see how you see your competitive or your competitors in your segment not only comparing to the state incumbents? And then lastly, also competition. The bus market is also going to change rapidly. I mean, there are players now who grow buses city-to-city connections very quickly, very aggressively. They are coming to the U.K. or they are in the U.K. now, but they're rolling this out quite strongly. What do you think how this impacts your business? And more importantly, how this impacts actually rail prices and therefore, rail being attractive to the consumer?

Sure. I'll start with the U.K. and obviously, the reference to Uber. I mean I'm happy to speak specifically to Uber. Look, Uber is not a new story anymore. They've been here for what. I mean I think we're probably up to 18 or 17 months now. And during that period, they've had the #2 travel app, they have a lot of -- we've all seen it right, a lot of in messaging around their rail offering, and they've had this 10% discount pretty much from the start, I think. And then we saw, what, 6, 7 months ago, that first wave of U.K. stations with takeovers and pretty widely spread. And they've come again on a second wave over the last sort of 4 or 5 weeks, and they've actually gone regionally and they've got some TV there. Look, you see the same data we do. Let me triangulate against this and look, and we still believe they are under 1% of the U.K. rail market. And this is not a new story and that they've been added a while and I don't see them really making traction or have any sense of growth. Of course, we watch this very closely. Anecdotally, what kind of tell you from what we hear from our customers in and around is that, of course, sometimes 10% off if you're going to Edinburgh, that people are going to take that. Like why wouldn't you, right? If you can do that, and it makes sense. But more broadly, what we're hearing is actually that 10% often doesn't compensate for, whether it be split save or some other savings that we've helped them find and therefore, there is a question around even what is a promotional mechanic. But more importantly, people are sort of saying the product experience is just so inferior to Trainline, I'm just not interested in that. So, I can't really speculate on what they're going to do in the future. All I can say is I feel like they've been trying pretty hard for 18 months, and I don't think they've made really any progress in the U.K. rail market. I think, the broader point on international and particularly Spain, I think what was kind of trying to talk to earlier is we really don't see anyone else in that unique position we sit within Spain for those combination of reasons. The fact we can aggregate all of the inventory. Therefore, each player in that light is not offering other tickets, and that makes us the place. And when we look at the other kind of potential aggregators, there really isn't anyone remotely close on scale. And I think this is where we're beginning to where we are, have been for a few years now. But in Europe, benefiting from the scale of our platform, the fact we developed this platform in the U.K. and able to bring it, we've got, as you know, hundreds of engineers working on this problem where I think other businesses who are not incumbent operators have got kind of dozens. And that just means we are developing a playbook, and we've developed aggregation in Italy, then Spain and now we're bringing it back to the U.K. on the London to Edinburgh, and that's bringing those scale economies. And then we can invest harder on the brand. We've done station takeovers. There's no other player who in Europe who's got the scale to be able to do that. And that is what gives kind of the overall point right. We've developed this model, and we've seen it flat in Spain, and we feel incredibly well positioned as we think about kick up in Italy and then ultimately, France, which is really the price here, right? This is the same scale as the U.K. market. So, we get pretty excited about that. I'll speak to bus market and Pete, you should definitely chime in if you see anything there. I mean, yes, we definitely see the liberalization in bus and I think that's a good thing and competitive for customers when I think multiple forms of kind of public transport is clearly good. We don't really see that having a massive impact on prices, yet as you know, we offer Busan we'll continue to have partnerships because we think it's a healthy kind of alternative, but it always feels like it's the 10% solution rather than something, anything like the scale of what rail is on a TAM level or whatever. It hasn't yet arrived anything liberalization is coming in Spain. But we will continue to offer that as a choice, but I feel like it's very kind of marginal in the broad rail perspective in core European markets is very different in other places around the world. Pete, do you want to add anything on that?