Trainline’s recent sales figures have sparked concerns about the future of the rail ticketing platform, particularly in light of potential competition from a government-backed rival.

The company reported a 12 percent increase in net ticket sales, totaling £5.9 billion for the year ending in February. However, this growth fell short of analysts’ expectations.

Changes in Google’s search engine algorithms, which impact how web results are ranked and prioritize paid advertisements, also affected the company’s online sales, according to a pre-close update from Trainline.

International sales growth decelerated to 1 percent, or 4 percent on a constant currency basis, reaching £1.1 billion. This slowdown is attributed to a decrease in demand from American travelers following a post-pandemic spike.

Despite these challenges, the company, a member of the FTSE 250, announced plans to proceed with an additional £75 million in share buybacks. Full-year results are set to be unveiled on May 7.

Investors are increasingly worried about the government’s proposal to create a state-supported train ticketing platform that could consolidate various operators’ ticketing websites, posing a direct threat to Trainline’s market position.

The prospect of competition from Great British Railways (GBR), which has been discussed since 2021, looms large over Trainline. The company’s shares dropped 40 percent following the initial proposal announcement but recovered somewhat when the initiative was delayed and ultimately abandoned in 2023.

Trainline highlighted its commitment to investing in the UK market, emphasizing that the government acknowledges the important role independent retailers play. The formation of GBR as a regulatory body is expected to take several years, with a minimal timeline set for its establishment by 2027.

Jody Ford, chief executive of Trainline, underscored the need for an open, fair, and competitive market in the UK and Europe.

Although consumers may find it cheaper to directly purchase tickets from rail operators, Trainline has carved out a £1.3 billion business by facilitating a smoother ticket-buying experience for passengers navigating Britain’s complex 55 million ticket and fare options.

In addition to its ticket sales, Trainline is exploring alternative revenue streams, including collaborations with hotel booking platforms and travel insurance providers.

Following the announcement of its financial results, Trainline’s shares fell by 41.5p, equivalent to a 13.2 percent decline, closing at 272.5p.