Breaking News

Tweet TWEET

GET: Groupe Eurotunnel SA: Eurotunnel Group: Activity in the Third Quarter of 2013

  GET: Groupe Eurotunnel SA: Eurotunnel Group: Activity in the Third Quarter
  of 2013

UK Regulatory Announcement

Strong Revenue Growth (+16%)

PARIS

Groupe Eurotunnel (Paris:GET):

► Third Quarter 2013

  *In a heavily competitive context, total revenue for the third quarter in
    2013 has increased by 16% to €309.8 million, compared to the third quarter
    of 2012^1 and by 7% excluding maritime activities.

  *Cross-Channel Fixed Link

       *Shuttle revenues increased by 4% to €144.1 million
       *Revenues from the use of the railway network increased by 4%

  *Europorte: continued revenue growth (+21%)
  *MyFerryLink firmly installed in the Short Straits market with revenues of
    €25.2 million

Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA
stated: “This summer, following a very positive first half year, Eurotunnel
established many new records even though the previous year was exceptional due
to the London Olympic Games. The upturn in the British economy has brought new
impetus to our markets which we intend to make the most of”.

                                  *********

► First nine months of 2013: key events

  *Cross-Channel Fixed Link

Transport of vehicles on Le Shuttle saw high levels of traffic during the
summer period: on 17 August, the absolute one-day record was passed with
15,982 vehicles^2 carried. In July, traffic levels were also very high, with
the summer holiday departure weekend seeing almost 33,300 vehicles carried
between Thursday 25^th and Sunday 28^th July.

  *The British and French States rejected the Reasoned Opinion addressed to
    them by the European Commission on the subject of access charges for the
    Channel Tunnel, a process in which the Commission had also requested that
    they guarantee the independence of the regulatory authority the
    Inter-Governmental Commission^3. The Eurotunnel Group has commissioned an
    independant report which proves that the current access charges are highly
    competitive considering the scale of the initial investment.
  *After the Inter-Governmental Commission granted on 14 June 2013 the
    railway operator Deutsche Bahn a certificate allowing it to operate
    passenger services through the Channel Tunnel, Eurostar announced in
    September the launch of a direct service between London and Amsterdam
    starting in December 2016. This is the largest aviation market in Europe
    with more than 3 million business and leisure passengers per year^4.
    Eurostar will also introduce direct services between London, Lyon and
    Marseille in 2015, bringing additional passengers to their services.
    Eurostar will thus finally realise the potential in these markets which
    will open new horizons for Eurotunnel in terms of growth.
  *The ETICA programme launched by Eurotunnel in May to develop cross-Channel
    rail freight traffic is already bearing fruit: two new services will be
    launched by the year end and two more are planned for 2014, with other
    prospects being analysed. The first contract signed already represents a
    transfer to rail of 80 trucks per week.
  *The Channel Tunnel won the World Prize for Engineering category “Major
    Civil Engineering Project of the last 100 years” awarded by the
    International Federation of Consulting Engineers (FIDIC). It was
    recognised unanimously by an international jury from amongst the most
    remarkable human achievements of the 20^th century. The longest undersea
    tunnel in the world and the project managers Setec and Atkins US were
    selected from more than 150 projects from across all five continents.
  *Europorte
  *Europorte, which brings together Groupe Eurotunnel SA’s rail freight
    operators in France and the United Kingdom, continues to grow. GBRf has
    consolidated its position as 3rd largest operator in Great Britain,
    carrying increasing quantities of biomass, coal and aggregates. GBRf has
    signed a contract with Hitachi Rail Europe to organise the testing and
    certification process for the Class 800 and 801 trains destined for the
    West Coast Mainline as part of the ambitious Intercity Express Programme.
    GBRf was selected for its reliability and expertise and is becoming an
    important player in the modernisation of the British railway system. To
    prepare for further growth in France, despite the dominant position of the
    publicly owned services, Europorte continues to train locomotive drivers
    in France, providing the skilled employment creation necessary for growth
    in the freight sector.
  *MyFerryLink

MyFerryLink has had a very successful summer season, despite intense
competition from the two other maritime operators, each of which has almost
twice as many services operating on the Short Straits. The SCOP crews who
operate the ships which are leased from the Group have shown that they have
brought to customers a wider choice of services.
The Eurotunnel Group is awaiting the decision by the Competition Arbitration
Tribunal concerning the prohibition decreed by the Competition Commission on
it operating any ferry activity out of the port of Dover, a decision which was
in contradiction with the opinion of the French competition authority’s
decision made on 8 November 2012.

EUROTUNNEL GROUP REVENUES

Revenue for the third quarter (1 July-30 September)

Group revenues have increased by 16% at a constant exchange rate to €309.8
million compared to 2012.

Revenues               3^rd Quarter   3^rd Quarter   Change       3^rd Quarter
                      2013          2012          2013/2012   2012
(€ million)            un-audited     restated*                   published**
Shuttle Services      144.1         138.5         +4%         142.1
Railway Network        76.4           73.8           +4%          75.5
Other revenues        3.8           3.8           -1%         3.9
Sub-total Fixed Link  224.3         216.1         +4%         221.5
Europorte             60.3          49.9          +21%        51.2
Sub-total before      284.6         266.0         +7%         272.7
maritime activities
MyFerryLink           25.2          1.9           n/a         1.9
Revenue               309.8         267.9         +16%        274.6

* Average exchange rate for the first nine months of 2013: £1=€1.182.
** Average exchange rate for the first nine months of 2012: £1=€1.232.

At €224.3 million, revenue for the Fixed Link in the third quarter of 2013
increased by 4% compared to the same period in 2012. Taking account of
Europorte and the new maritime activities, total revenues for Eurotunnel
reached €309.8 million, a significant 16% increase, in spite of the very
competitive cross-Channel market. The Eurotunnel Group has benefitted from the
upturn in the British economy, which appears to be improving ahead of other
western economies.

Revenues for Shuttle Services increased by 4% to €144.1 million compared to
the same period in the previous year.

Revenues from the railway network increased by 4%, although Eurostar saw its
revenues increase by 10% over the third quarter for traffic which only
increased by 5% due to the attractive access charges for railway operators.

Revenues from Europorte amounted to €60.3 million (+21%).9

MyFerryLink has posted an impressive growth, increasing from €1.9 million to
€25.2 million in the space of a year. This activity remains, however, marginal
as far as the Group is concerned in terms of revenue, with €55 million
recorded for the first nine months 2013. More significant, this activity broke
even in August (figures not audited), thereby proving its viability.

Revenues for the first nine months (1 January - 30 September)

Revenues                Year to date   Year to date   Change      Year to date
                       30 Sept 2013  30 Sept 2012             30 Sept 2012
(€ million)             un-audited     restated*      2013/2012   published**
Shuttle Services       363.7         357.7         +2%        365.4
Railway Network         217.5          212.1          +3%         216.4
Other revenues         9.8           9.3           +6%        9.5
Sub-total Fixed Link   591.0         579.1         +2%        591.3
Europorte              172.4         151.1         +14%       154.4
Sub-total before       763.4         730.2         +5%        745.7
maritime activities
MyFerryLink            55.0          1.9           n/a        1.8
Revenue                818.4         732.1         +12%       747.5

* Average exchange rate for the first nine months of 2013: £1=€1.182.
** Average exchange rate for the first nine months of 2012: £1=€1.232.

For the first nine months of the year, up until the end of September 2013,
Group revenues reached €818.4 million (+12%).

  *Shuttle services revenues increased by 2% to €363.7 million
  *Revenues from the use of the railway network (€217.5 million) increased by
    3%
  *Revenues from Europorte increased by 14% to €172.4 million

► FIXED LINK TRAFFIC

Traffic for the Third quarter (1 July to 30 September)

                                                                  Change
                                      2013       2012      
                                                                  2013/2012
Truck Shuttles              Trucks      334,933    363,028    -8%
Passenger Shuttles          Cars¹       848,045    820,484    +3%
                           Coaches     15,242     14,058     +8%
Eurostar passenger trains²  Passengers  2,713,550  2,596,005  +5%
Rail freight trains^3        Tonnes       331,211     297,139     +11%
                           Trains      622        571        +9%

¹ Including motorcycles, vehicles with trailers, caravans and motor homes.
² Only Eurostar passengers travelling through the Channel Tunnel are included
in this table, thus excluding journeys between Paris-Calais and
Brussels-Lille.
^3 Rail freight services by train operators (DB Schenker on behalf of BRB, the
SNCF and its subsidiaries, and Europorte) using the Tunnel.

Traffic for the first nine months (1st January to 30 September 2013)

                                      2013       2012       Change
                                                                  2013/2012
Truck Shuttles              Trucks      1,012,635  1,094,129  -7%
Passengers Shuttles         Cars¹       1,919,209  1,869,203  +3%
                           Coaches     48,965     44,117     +11%
Eurostar passenger trains²  Passengers  7,658,205  7,438,285  +3%
Rail freight trains^3        Tonnes       1,007,243   906,694     +11%
                           Trains      1,909      1,725      +11%

¹ Including motorcycles, vehicles with trailers, caravans and motor homes.
² Only Eurostar passengers travelling through the Channel Tunnel are included
in this table, thus excluding journeys between Paris-Calais and
Brussels-Lille.
^3 Rail freight services by train operators (DB Schenker on behalf of BRB, the
SNCF and its subsidiaries, and Europorte) using the Tunnel.

Eurotunnel Shuttles

Le Shuttle

Car traffic increased by 3% in the first nine months and has thus maintained
growth, even though the third quarter of 2013 has to be compared to the
exceptional period of the Olympic Games in 2012. This growth in car traffic is
in line with that of the Short Straits market (+3%) and Le Shuttle’s share of
the car market has remained stable at the high level of 49%. Eurotunnel is
able to offer an environmentally responsible means of transport to passengers
who prefer to travel to continental Europe rather than other, less stable
countries around the world.

Coach traffic continues on its rapid development due largely to the
establishment of several European routes by specialists such as IDBus, Magabus
and Eurolines.

Truck Shuttles

Truck Shuttle traffic returned to its previous levels with a decrease of 7% in
the first nine months of 2013 compared to the same period in 2012, due notably
to the increase in capacity by the ferries running between Calais and Dover
compared to 2012, when SeaFrance was no longer operating. However, the volumes
recorded by Eurotunnel remain 10% above the 2011 level which demonstrates the
appeal of this service. In this context, Eurotunnel maintains its pricing
policy which is based on the Tunnel’s strengths.

Adding MyFerryLink traffic (see below), during the first nine months of the
year the Group handled 2.22 million cars and coaches, 1.25 million tucks and
16.6 million passengers of which almost 9 million were on its own Shuttles and
boats.

The railway network

Eurostar

Eurostar declared that 2,713,550 passengers travelled through the Channel
Tunnel during the third quarter of 2013 which represents a 5% increase
compared to the third quarter in 2012. This strong growth is due to more
services being offered and justifies Eurotunnel’s position which is that it is
the quality of the service, the frequency of departures and the number of
destinations served which will provide increased traffic.
It is also worth mentioning that the audit requested by Eurotunnel of the
number of Eurostar passengers carried during the Olympic Games period in 2012
has not yet been completed due to a lack of cooperation by Eurostar.
Eurotunnel regrets this lack of transparency.

Rail freight services by railway operators

During the first nine months of 2013, the number of freight trains travelling
through the Channel Tunnel has seen double digit growth (+11%) to almost 2,000
trains, due to increases in intermodal traffic and the transport of steel.
Tonnage has also increased (+11%), with the symbolic threshold of 1 million
tonnes in 9 months having been passed. Eurotunnel continues to try to remove
the numerous non-tariff barriers which obstruct the development of
cross-Channel rail freight.

► MYFERRYLINK TRAFFIC

Traffic for the third quarter (1 July to 30 September)

                            Change
        2013     2012* 
                            2013/2012
Trucks   93,787   1,657  n/a
Cars     138,525  9,539  n/a
Coaches  329      3      n/a

Traffic for the first nine months (1 January to 30 September)

                            Change
        2013     2012* 
                            2013/2012
Trucks   235,164  1,657  n/a
Cars     255,131  9,539  n/a
Coaches  608      3      n/a

* MyFerryLink began commercial operations on 20 August 2012.

One year after the start of its services, MyFerryLink has carved out a 10%
market share of cross-Channel Short Straits freight traffic. 93,787 trucks
used the service in the third quarter of 2013, a sign that the new French
ship-owner has identified its client base with an offer that responds to the
needs of the hauliers.

^1 All comparisons with 2012 are made at the average exchange rate for the
first nine months of 2013: £1=€1.182
^2 Passenger vehicles includes cars, motorcycles, vehicles with trailers,
caravans and camper vans
^3 The Inter-Governmental Commission for the Channel Tunnel was established by
the British and French States
^4 Source Eurostar

Eurotunnel Press Contact:

For media enquiries contact John Keefe Consultant on + 44 (0) 1303 284491

Email: press@eurotunnel.com

For investor enquiries contact Michael Schuller on +44 (0) 1303 288749

Email:  Michael.schuller@eurotunnel.com

Contact:

Eurotunnel
 
Press spacebar to pause and continue. Press esc to stop.