Eurotunnel popularity sees Getlink results soar

Getlink, the Paris-based company known until recently as Groupe Eurotunnel, reported its 2017 financial results on Wednesday, with consolidated revenues for 2017 reaching €1.033bn - an increase of 4% over 2016.

The CAC Mid 60 component, which operates the Channel Tunnel and its associated infrastructure, said operating costs reached €507m - an increase of only 1% - while its consolidated EBITDA amounted to €526m - an improvement of €32m compared to 2016 at a constant exchange rate.

Trading profit increased by €30m to reach €374m, a 9% rate of growth.

The consolidated net profit for the group for the year reached €113m, compared to €188m in 2016, although that included €114m of non-recurring profits.

On a comparable basis, excluding the non-recurring items, the consolidated net result increased from €74m in 2016 to €106m in 2017.

Cash held at the end of December amounted to €613m.

Looking at key events during the 2017 year, Getlink said the refinancing of its floating rate debt reduced interest payments by €60m per year, and reduced its average cost of debt to below 4% from the second half year of 2017.

In 2017, Eurotunnel’s road vehicle shuttles carried 2.6 million passenger vehicles and 1.64 million trucks.

Revenue from shuttle services increased 3%, which the board put down to increased yield thanks to a high quality of service.

Le Shuttle attained an annual car market share of 54.9%, confirming once again its leadership in the short straits market.

The pets service - which Getlink said was one factor in customer loyalty - had another record year, with 331,372 animals transported - an increase of 10% compared to 2016.

Getlink said the truck shuttle service consolidated its traffic position through the year in 2017, with a market share of 39.1%.

Eurostar - the passenger service which runs between central London, Paris and Brussels - carried more than 10.3 million passengers in 2017, buoyed by a record end to the year.

That return to traffic growth, the announced launch of Eurostar services between London and Amsterdam on 4 April, and the prospect of services to other cities in France, were further encouragement for future growth in this traffic.

Eurostar is operated by company separate to Getlink, but uses Getlink’s infrastructure in crossing the English Channel.

Revenue for the company’s Europorte division increased 2%, which was said to be mainly due to an increase in volumes from major customers in the automobile, chemical and cereal sectors as a result of the quality of service provided.

Europorte generated a “substantially improved” EBITDA at €6m, the board said, while also generating a positive pre-tax net result of €0.3m.

Work on the group’s ElecLink project - which is constructing a power transmission link between the UK and France via the Channel Tunnel - was said to be progressing on schedule.

Entry into service was planned for 2020.

“The group has seen its eighth consecutive year of growth and has had another excellent year from both operational and financial perspectives,” commented Getlink chairman and chief executive Jacques Gounon.

“The outlook for the years to come is equally positive notably for cash generation, enabling the group to commit to a dividend increase of €0.05 per year for the next few years.”