Groupe Eurotunnel says sterling's weakness lightens debt load

Groupe Eurotnnel SA said sterling's weakness is lightening its debt load, as it booked a 4% annual rise in third-quarter revenue to €320.3m.

"Our business has never been stronger," enthused chairman and chief executive Jacques Gounon.

Channel Tunnel Fixed Link shuttle revenues were up 12% to €178.6m, with shuttle traffic up 14% and passenger shuttle traffic up 2%. There was a 10% decline in Eurostar traffic.

The company added that Europorte revenues were down 7% to €63.4m.

"The Group is well placed for the sustained period of growth in the UK economy forecast by the IMF and the Bank of England," said Gounon in a statement.

"At the same time, the fall in the value of the pound has had a significant positive impact on the service of our debt.

"These encouraging signs, combined with new records broken this quarter for the Group put into perspective the change in public opinion following the vote in favour of Brexit."

Looking ahead, Group Eurotunnel said activity remains positive, with record volumes achieved despite an uncertain European context.

It added that there was no sign of slowdown in the UK economy, and observed that the FTSE had grown more than 10% since the non-binding UK referendum to quit the EU.

"Variations in the value of sterling have had no significant impact on our business in the past and the movement in exchange rates does not damage growth in profitability."