Eurotunnel cheered by revenue lift
Channel Tunnel operator Eurotunnel set aside its debt worries to report a 2% rise in revenues for the first six months of the year today.
The group said there had been a “marked improvement” in its performance, but warned that this could be undermined by the possible negative impact on supplier demands and customer reservations following the failure of certain creditors and the company to agree on a plan to tackle its £6.2bn (€9.06bn) debt mountain.
Last week the struggling company asked a French court to freeze its massive debts so it can continue its cross-Channel operations while a court-administered survival plan is worked out.
Alongside debt talks, Eurotunnel has restructured its fares in order to compete more effectively with low-cost airlines. Revenues in the first half of the year rose to £277m (€404.76m) with turnover from its own car and truck shuttle services up 3% on a year earlier.
The group also said it had reduced operating costs by 9% to £116m (€169.5m).
Jacques Gounon, chairman and chief executive of Eurotunnel said, “Eurotunnel’s operating results for the first half of this year are very good.
“This marked improvement I the tangible result of the considerable efforts made by the staff and shows the potential Eurotunnel has.
“It would be an injustice if these efforts were reduced to nothing by the refusal of creditors to reach a rapid solution to the question of the debt”.
Eurotunnel has repeatedly warned that, without a debt overhaul, the company will not be able to guarantee its future beyond 2007 – the point at which it is due to start paying back a significant portion of the debt.
Bankruptcy is likely to mean that control of the tunnel is passed to a group of banks.
