Eurotunnel Group: Activity in the Third Quarter of 2014

Strong Revenue Growth (+7%)

PARIS--()--

Groupe Eurotunnel

  • Third Quarter 2014
    • Total Group revenues for the 3rd quarter of 2014 show an increase of 7% to €343.9 million, compared to the 3rd quarter in 20131.
  • Cross-Channel Fixed Link
    • Revenues from Shuttles grew by 7% to €160.3 million.
  • Europorte: continued revenue growth (+8%)
  • MyFerryLink: revenues increased by 20% to €30.3 million

Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA stated: “This summer Eurotunnel set new records for traffic and this momentum is continuing. The energy in the UK economy and the application of the Marpol environmental regulations to the ferry companies from January 2015, strengthen the Eurotunnel Group’s competitive advantages”.

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  • First nine months of 2014: key events
    • Cross-Channel Fixed Link
  • Eurotunnel Le Shuttle broke several records this summer: 375,000 vehicles were transported in the month of August and the daily record was broken on three separate occasions2, reaching a new peak of 16,416 vehicles. Even more remarkably, more than 85,400 vehicles3 were carried during the week of 11-17 August 2014. This is the highest number ever reached in 20 years of operations.
  • Eurotunnel, the leading rolling motorway with 1.5 million trucks transported each year, is building capacity to be able to carry 2 million trucks per year from 2020. The order for three new truck shuttles will deliver the capacity required to accompany market growth and to enable 8 departures per hour in future, compared to 6 per hour today. The terminal capacity will also be increased with the addition of a secure parking area for 370 trucks in Coquelles. The works on site are progressing on schedule.
  • The introduction of new environmental regulations (Marpol convention) on the ferries from 1 January 2015 is likely to cause price rises in the cross-Channel market.
  • CIFFCO, the opal coast international railway training centre created by the Eurotunnel Group, has obtained recognition for its “Train Driver” programme from the French body which accredits national certifications (Répertoire National des Certifications Professionnelles). Until now, SNCF has been the only company recognised for this programme, which has enabled Europorte to attract new customers. The recognition by the State of this increasingly important profession adds value to the job for the future, is at the heart of youth employment and calls upon many different skills: independence, respect for traffic regulations and safety procedures, customer information, etc. Recognition of this certification will also enable the delivery of a national vocational qualification through study with work placements.
  • The 1000MW interconnector between the UK and France being developed by ElecLink (a joint venture between the Eurotunnel Group and Star Capital Partners) has now obtained all the necessary authorisations. The interconnection contracts have been signed with the National Grid Electrical Transmission in the UK and the Réseau de Transport d’Electricité in France. The agreement of the Intergovernmental Commission (IGC) and the British and French regulators (OffGEM and CRE) has been obtained, as has the derogation requested from the European Commission. It is expected to be in service at the end of 2016.
  • Europorte
  • The Port of Bordeaux has chosen Europorte to operate its terminals at Verdon, following a public tender consultation. A mixed industrial and logistics platform spread over 110km of the Gironde Estuary, the Grand Port Maritime de Bordeaux is situated at a crossroads of land river and sea routes and handles approximately 9 million tonnes of freight each year.
  • Europorte continues its trajectory through new contracts in rail haulage. In July it opened a bulk fertiliser transport route with the Borealis group, a leading and innovative chemicals and fertiliser specialist, with 3 rotations per week between Grand Quevilly and Rochelle or Flambon, and one rotation per week from Grandpuits (Seine et Marne) to Champagne and the South West. This contract will enable Europorte to develop a presence on new routes on the Atlantic coast.
  • New developments can also been seen at Europorte subsidiary, Socorail, such as the establishment of a dedicated rail traction team at the Induslacq industrial site at Bassin de Lacq, in the Pyrenees, and the creation of a dozen new track maintenance and ground handling jobs to manage the 4,000 wagon movements each year at Chem'pole 64, in Mourenx..
  • GB Railfreight, the third largest operator in the UK continues to show strong growth in its order book. It has recently renewed contracts with Network Rail and Mediterranean Shipping Company UK. The new 5-year agreement with Network Rail brings significant additional activity to the business. The company has also signed major new contracts for the transport of aggregates. To keep up with business development, GB Railfreight has acquired 21 class 66 locomotives to bring its class 66 fleet to a total of 71 locos.
  • MyFerryLink

MyFerryLink has matched expectations, achieving 10% market share for freight over the period. The summer season has been a great success, despite the strong competition from the two other ferry companies who each operate almost twice as many cross-Channel services. The teams from the SCOP who operate the ships owned by the Group have proven their professionalism and the quality of service they can provide. The Eurotunnel Group is appealing against the decision by the Competition and Markets Authority (CMA) to prevent MyFerryLink from operating the Berlioz or the Rodin out of Dover, within six months of its order. As a reminder, the French competition authority gave its blessing to the acquisition of these ships by the Eurotunnel Group on 8 November 2012. Eurotunnel contests the argument that it acquired SeaFrance, when that company had been liquidated 7 months before the acquisition of the ships.

1 All comparisons with 2013 are made at the average exchange rate for the first nine months of 2014 of £1=€1.250

2 On 2, 9 and 16 August, the traffic reached successively, 16,150, 16,416 and 16,167 vehicles, significantly higher than the previous record set on 17 August 2013 of 15,982 vehicles.

3 Cars and coaches, compared to 82,967 vehicles in 2013

EUROTUNNEL GROUP REVENUES

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

Revenue for the Group grew by 7% compared to 2013 at a constant exchange rate to reach €343.9 million.

Revenues

(€ million)

 

3rd quarter
2014
un-audited

 

3rd quarter
2013
restated*

 

Change
2014/2013

 

3rd quarter
2013
published**

Shuttle Services   160.3   150.1   +7%   144.1
Railway Network 80.8 79.1 +2% 76.4
Other revenues   4.7   4.0   +17%   3.8
Sub-total Fixed Link   245.8   233.2   +5%   224.3
Europorte   67.8   62.9   +8%   60.3
MyFerryLink   30.3   25.1   +20%   25.2
Revenue   343.9   321.2   +7%   309.8

* Average exchange rate for the first nine months of 2014: £1=€1.250

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

At €245.8 million, revenue for the Fixed Link in the 3rd quarter of 2014 grew by 5%. Including Europorte and MyFerryLink, total revenue for the Eurotunnel Group reached €343.9 million, a significant 7% increase despite the highly competitive cross-Channel market. The Eurotunnel Group is helped by the strong growth in the UK economy.

Revenue for Shuttle Services increased by 7%, compared to the same period in the previous year, reaching €160.3 million, based on a combination of growth in car and truck traffic and an increase in yield.

Revenues from the Railway network increased by 2% in the third quarter as a result of growth in the number of passengers carried, low inflation and a reduction in access charges introduced by Eurotunnel as part of the effort to re-launch the cross-Channel rail freight sector.

The number of rail freight trains using the Channel Tunnel leapt by 9% due to commercial success and an energetic approach to new markets.

Revenues from Europorte reached €67.8 million (+8%).

MyFerryLink made remarkable progress, posting an increase of 20% to €30.3 million in the space of a year, enabling it to further strengthen its load factor. At the same time, this activity remains modest compared to the rest of the Group, as its revenues account for just 8% of the Eurotunnel Group’s total revenues.

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

Revenues

(€ million)

 

Year to date
30 Sept 2014
un-audited

 

Year to date 30
Sept 2013
restated*

 

Change
2014/2013

 

 

Year to date 30
Sept 2013
published**

Shuttle Services   397.2   374.5   +6%   363.7
Railway Network 229.2 223.4 +3% 217.5
Other revenues   11.3   10.1   +11%   9.8
Sub-total Fixed Link   638.4   608.0   +5%   591.0
Europorte   194.7   177.6   +10%   172.4
MyFerryLink   69.4   55.0   +26%   55.0
Revenue   902.5   840.6   +7%   818.4

* Average exchange rate for the first nine months of 2014: £1=€1.250.

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

For the first nine months of the year, up to the end of September 2014, revenues for the Group reached €902.5 million (+7%).

  • Shuttle revenue grew by 6% to €397.2 million
  • Revenues from the use of the Railway Network (€229.9 million) increased by 3%
  • Europorte revenues grew by 10% to €194.7 million
  • FIXED LINK TRAFFIC

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

        Change
        2014   2013   2014/2013
Truck Shuttles   Trucks   353,469   334,933   +6%
Passenger Shuttles Cars¹ 869,945 848,045 +3%
    Coaches   14,106   15,242   -7%
High-speed passenger trains² (Eurostar)   Passengers   2,803,745   2,713,550   +3%
Rail freight trains3 Tonnes 389,146 331,211 +17%
    Trains   681   622   +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 2014)

        Change
        2014   2013   2014/2013
Truck Shuttles   Trucks   1,052,000   1,012,635   +4%
Passengers Shuttles Cars¹ 1,990,432 1,919,209 +4%
    Coaches   47,294   48,965   -3%
High-speed passenger trains² (Eurostar)   Passengers   7,845,120   7,658,205   +2%
Rail freight trains3 Tonnes 1,228,889 1,007,243 +22%
    Trains   2,164   1,909   +13%

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 (Passenger Shuttle)

Car traffic grew by 4% in the first nine months of the year ahead of a market showing slight growth. As a consequence, Eurotunnel remains leader, with an increase in market share to 50.3%. The Group has been able to offer services to customers seeking an environmentally friendly way to travel whilst continuing to provide opportunities for the large numbers of British tourists who prefer to travel to the Continent for their holidays, a destination that is both safer and easier to reach.

Truck Shuttles

Truck Shuttle traffic grew by 4% in the first nine months of 2014 compared to the same period in 2013, due to the spectacular growth in the UK economy (the cross-Channel market increased by 7% for the 9 month period) and to the strong security maintained by Eurotunnel, which reassures drivers before they cross the border. Market share for trucks is 37.3% for the first nine months of 2014.

The Railway Network

Eurostar

2,803,745 passengers travelled through the Channel Tunnel on board Eurostar trains during the third quarter, a 3% increase compared to the 3rd quarter in 2013. This strong growth continues the good performance delivered this summer on the back of promotions and additional capacity. This trend should continue in the future with the launch of new services to Lyon, Marseille and Amsterdam. The British government’s sale of its 40% stake in Eurostar is a catalyst for innovation for this rail company which is determined to capitalise on its potential.

Rail freight services by railway operators

Over the first nine months of the year, the number of rail freight trains passing through the Channel Tunnel has seen double digit growth (+13%) to reach 2,164 trains due to the introduction of new services.

  • MYFERRYLINK TRAFFIC

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

      Change
    2014   2013   2014/2013
Trucks   101,125   93,787   +8%
Cars*   164,385   138,525   +19%
Coaches   373   329   +13%

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

      Change
    2014   2013   2014/2013
Trucks   285,038   235,164   +21%
Cars*   273,210   255,131   +7%
Coaches   1,305   608   +115%

* Including motorcycles, vehicles with trailers, caravans and motor homes

MyFerryLink continued to grow through the quarter and is noteworthy as the only ferry company to increase its car traffic volumes in September. MyFerryLink has garnered 10% market share in cross-Channel freight with 101,125 trucks transported in the third quarter of 2014: a clear sign that the quality of service provided by this French operator meets the needs of the transporters.

Groupe Eurotunnel
For UK media enquiries:
John Keefe, + 44 (0) 1303 284491
press@eurotunnel.com
or
For investor enquiries::
Jean-Baptiste Roussille, +33 (0)1 40 98 04 81
jean-baptiste.roussille@eurotunnel.com
or
Michael Schuller, +44 (0) 1303 288749
Michael.schuller@eurotunnel.com

Short Name: Groupe Eurotunnel SA
Category Code: MSC
Sequence Number: 437910
Time of Receipt (offset from UTC): 20141022T061953+0100

Contacts

Groupe Eurotunnel SA

Contacts

Groupe Eurotunnel SA