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Eurotunnel makes loss of €11m (£8.7m) thanks to MyFerryLink service but sees revenues grow 8% to €559m (£442.5m)

22 July 2014
by Chris Price

Despite the blow of a closure ruling for its MyFerryLink service, Eurotunnel has reported an increase in revenues of 8% to €559m (£442.5m).

However, the Folkestone-based company recorded a net loss of €11m (£8.7m) in the first six months of this year, owing to its Dover to Calais operation.

The Channel Tunnel operator saw high-speed passenger numbers grow by a modest 2%, limited by French strikes in June but passing the five million mark for the first time.

A Eurotunnel train

A Eurotunnel train

Excluding the losses from MyFerryLink, the firm was in the black by €3m (£2.4m).

Its number of freight services increased 15% in the first half of this year, thanks to an incentive scheme for start ups and despite French strikes in June.

Its rail freight subsidiary Europorte saw revenues grow 10% to €127m (£100.5m).

Turnover for travel through the tunnel – known as the Fixed Link – grew 5% to €393m (£311.1m).

The company’s earnings before interest, taxes, depreciation and amortisation expanded by €12m (£9.5) to €216m (£171m), an increase of 6%.

Despite making losses, revenues at its Dover to Calais ferry service MyFerryLink were up by 31% to €39m (£30.9m).

MyFerryLink leaving Dover Port

MyFerryLink leaving Dover Port

Last month the Competition and Markets Authority ruled the cross-Channel service must cease operating within six months.

It said Eurotunnel broke merger rules when it bought the ferries formerly owned by defunct SeaFrance, meaning it must close by the end of the year.

The company plans to appeal the decision but it is widely expected the operator will have to cease regardless.

However, freight traffic on the service leapt by 30% despite the announcement, which Eurotunnel said “is a clear indication of customer support for MyFerryLink”.

The company said a “lack of awareness” about MyFerryLink was slowing progression on car numbers.

Eurotunnel chairman and chief executive Jacques Gounon said: “All areas of our business are growing.

“The Fixed Link achieved a record level of operating margin in a very active cross-Channel market.

“The new environmental constraints which will be imposed on the ferry companies from January 1, 2015, reinforce the attractiveness of the Fixed Link.”

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