A fresco for the 25th anniversary of the Chunnel
Getlink revealed 2019 half-year results, showing 10th consecutive increase in revenue, and illustrated the permanent link between France and the U.K.
Getlink’s 2019 half-year results showed the 10th consecutive increase in revenue.
Yields generated by the Eurotunnel segment, which represents 87% of the Group’s total revenue, reached €456M (+1% compared to the 2018 half-year).
A slight decrease in EBITDA by 1% to €251M,due to the impact of the Customs’ strike action (estimated at €10M), was recorded.
There were 809,621 trucks transported (-4%) and an almost stable market share at 40.4%, in a market contracted by 3%. Notable was the impact of the Customs’ strike (from March to May), the delay in implementation of Brexit and its uncertainties as well as the annual maintenance shutdown of several car factories in the UK in April instead of August, to justify such a decrease.
With 1.14 million vehicles transported, car traffic decreased by 2% thanks to a market share improvement of 2 points to 59.9% in a market contracted by 5.9%, affected by the uncertainties surrounding Brexit.
The Eurostar traffic showed a record for a first-half with 5.3 million passengers, driven by the continuing success of the London-Amsterdam service and the additional third service in June, despite the significant impact of the French Customs’ work to rule actions.
The Cross-Channel rail freight had a 10% growth in traffic compared to H1 2018.
Europorte’s revenue increased by 10% to €66M.
“2019 is a particular year, being the 25th anniversary of the crossChannel Fixed Link. We wanted to mark this event in our own way, with the creation of a fresco on the French portal of the Tunnel: a young girl looking through binoculars to the other side of the Channel. Her eyes, which look into the future, can be seen in Folkestone” stated Jacques Gounon, Chairman & Chief Executive Officer, in his traditional letter to shareholders.
The Franco-British artist YZ was chosen to create this fresco, which extends to over 50 metres wide and 17 metres high; this allegory of the binoculars shows the artist’s inspiration from her experiences in Folkestone, where she previously lived with her family, and the memory of the excitement of seeing the French coastline from the beach.
“We wanted to remember that the UK and France share a unique geographical, historical, economic, cultural link. This message has been magnificently created with this little girl who has a little of her in France as well as in the UK, looking out permanently on both sides of the Channel” said Gounon, who also commented half-year results.
“For Eurotunnel, after a very busy first quarter, the uncertainties that prevailed in the 2nd quarter have resulted in a slowdown in traffic, further compounded by the French Customs work to rule and the negative image of the ‘yellow jackets’ demonstrations.
Nonetheless, revenue has held up well (+1%) and EBITDA, which is slightly down (-1%), would have been up had it not been for the impact of the French Customs’ strike.
Our rail freight subsidiary Europorte has achieved an excellent performance: +10% in revenue to €66M and an EBITDA up to €13M. The commercial environment in France for this activity should be considerably improved next year with the financial responsibilisation of the historical operator, to which we believe we have contributed through our various interventions with the relevant officials.
Therefore, we are confirming our outlook for 2019, taking as a reference the ‘no deal’ scenario with an EBITDA of €560M (at an exchange rate of £1=€1.128). Our objective of continued growth in dividend payments is confirmed taking into account increase in our cash flows” concluded Getlink’s number one.