Getlink, the operator of the Channel tunnel, presents mixed results in the 3rd quarter. Its ElecLink electrical cable business continues to weigh on its performance, despite the good performance of cross-Channel traffic. Discover the details…
The operator of the Channel tunnel Getlink has revealed almost stable turnover in the 3rd quarter of 2024. While its cross-Channel transit activity is doing well, the company remains affected by low electricity prices which are penalizing its branch of ElecLink electrical cable between France and England.
ElecLink weighed down by falling electricity prices
In the 3rd quarter, the turnover of ElecLink, the one gigawatt cable connecting the two banks of the Channel since 2022, fell by 21%. A poor performance which follows a halving of its revenues in the first half. Getlink explains this trend with a “expected normalization of electricity markets”after two years of high prices.
This decline corresponds to an expected normalization of electricity markets.
– Getlink
“Historical professions” that stand out
To achieve a turnover of 475 million euros over the past quarter (-0.4% over one year), the group relied on its vehicle and passenger transport activities via the Channel Tunnel. . This branch, which generated 359 million euros in revenue (+5%), constitutes “a real satisfaction” according to Yann Leriche, general manager of Getlink.
In detail:
- Truck traffic increased by 2%
- Car traffic fell by 0.3%, penalized by “strong competition from ferry operators” according to Getlink
- Despite a 1% decline in the number of passengers, sales of the rail network (including Eurostar) jumped 10%
An annual Ebitda target revised downwards
In view of these elements, Getlink has confirmed that it is targeting a gross operating surplus (Ebitda) of between 780 and 830 million euros for the entire 2024 financial year. An objective lower than the performance of 2023, where Ebitda stood at 979 million euros.
The persistent weakness of electricity prices, which should continue to weigh on ElecLink in the coming months, explains this downward adjustment of the group’s ambitions. Getlink will therefore have to rely on the good direction of its cross-Channel activity to mitigate the impact of this difficult context on its profitability.
The Channel Tunnel, a key link in Franco-British trade
Despite these headwinds, the Channel Tunnel remains a strategic asset for Getlink and an essential crossing point for cross-Channel flows:
- More than 20 million passengers use it every year
- Nearly 3 million vehicles pass through it
- More than 25% of trade between the UK and continental Europe passes through the tunnel
The Channel Tunnel is an essential link in commercial and human exchanges between the United Kingdom and continental Europe. Its competitive position and strategic importance make it a valuable asset for Getlink, despite a sometimes volatile context.
– A financial analyst
Inaugurated in 1994, the Channel Tunnel has survived decades and geopolitical ups and downs, from Brexit to the health crisis, to establish itself as a lasting link between the two banks of the Channel. A status that Getlink intends to preserve and enhance, by focusing on the complementarity of its transport and energy interconnection activities.
