2018 half-year results: strong growth in net profit

25/07/2018 - 06:30
    • Revenues: a further increase to €510 million (+4%)1
    • EBITDA increased to €250 million (+5%)
    • Net profit up strongly to €39 million (+15%)
  • Eurotunnel:
    • Revenues increased to €450 million (+4%)
    • Increase in EBITDA of 4% to €247 million
  • Europorte:
    • Revenues increased to €60 million (+2%)
    • Significant increase in EBITDA to €4 million

 

“For the first six months of 2018, Getlink has published growth in its revenues and EBITDA for the 9th consecutive first-half. We confirm our outlook for 2022 and our shareholder remuneration policy”.

 Jacques Gounon, Chairman and Chief Executive Officer of Getlink

 

Key events in the half year

  • Group
    • The arrival of Atlantia as an investor in the Group
    • At its Investor Day on 19 June, the Group confirmed its financial objectives and dividend policy
    • Payment of €160 million in dividends for the 2017 financial year
    • Negative impact of the SNCF strikes on EBITDA estimated at €4.5 million
  • Eurotunnel
    • Strength of Le Shuttle and Le Shuttle Freight
    • Opening of the Folkestone Flexiplus lounge
    • Increase in truck market share (+1.7 points) to 40.9% and relative stability in the car market at 57.6%
    • Eurostar traffic growth up to 5.2 million passengers (+3%), aided by the opening of the London-Amsterdam service on 4 April 2018 and a record month in June with 1.016 million passengers (+6.6%), the second biggest month in their history, despite the impact of strikes during the second quarter
    • Underlying growth of +20% for cross-Channel rail freight trains, which were strongly affected by the SNCF strikes
  • Europorte
    • Increase in revenues (+2%) due to winning new contracts
    • Negative impact of SNCF strikes on Europorte EBITDA, estimated at €1.6 million
    • Significant increase in EBITDA to €4 million, in line with the strategic plan
  • ElecLink
    • On-time and on-budget
    • €355 million investment to date since taking control in 2016

 

Operating profit continues to improve

The consolidated revenues for the Group in the first six months of 2018 reached €510 million, an increase of €18 million, or +4% compared to the first half of 2017.

The Group’s operating costs have increased by €7 million for the six months. For the Fixed Link, charges increased by +4% to €203 million.

The consolidated figures for the first six months show an increase of €11 million in EBITDA to €250 million.

For the Fixed Link, this is the 9th consecutive first-half of the year when EBITDA has increased, +4% to €247 million.

We should remember that revenues and operating profit remain characterised by the strong seasonality across the year and that these first-half results cannot be extrapolated across the full year.

Net finance costs increased slightly (+€3 million) in the first six months of 2018, an increase due to the impact of the increase in British and French inflation on the cost of the indexed tranches of the debt.

In the first half of 2018, the Group’s net consolidated result was a profit of €39 million, an increase of +15%.

The Free Cash Flow for the Group’s continuing activities has increased by +€2 million to €108 million in the first six months of 2018, compared to €106 million in the first half of 2017.

 

OUTLOOK

Looking towards 2022, the Group remains confident in its capacity to generate sustainable growth and continues to expect growth in its EBITDA. The Group reconfirms its outlook for the medium term:

2018 Objectives:

  • EBITDA: €545 million at an exchange rate of £1=€1.14
  • Dividend 2018: €0.35 per share

Outlook for 2022:

  • EBITDA: above €735 million (at least +38%)
  • Free Cash Flow: c.€400 million (approx. +70%)
  • Annual increase in dividend: +€0.05 per share

 

GROUP REVENUES

First half (January to June)

 

€ million

 

 

        1st half 2018*

 

 

       1st half 2017**

 

 

   Change

 

 

          1st half2017

 

 

Exchange rate €/£

 

 

1.136

 

 

1.136

 

 

 

 

 

1.161

 

 

Shuttle Services

296

 

282

 

+5%

 

285

 

 

Railway Network

147

 

144

 

+2%

 

146

 

 

Other revenues

7

 

7

 

0%

 

7

 

 

Sub-total Fixed Link

450

 

433

 

+4%

 

438

 

 

Europorte

60

 

59

 

+2%

 

59

 

 

Revenues

510

 

492

 

+4%

 

497

 

* Average exchange rate for the first half of 2018: 1£ = €1.136.

** Recalculated at the exchange average rate of the first half of 2018.

 

Second quarter (April to June)

 

€ million

 

 

2nd quarter 2018

 

 

2nd quarter 2017

 

 

Change

 

 

2nd quarter 2017

 

 

Shuttle Services

157.5

 

152.6

 

+3%

 

153.9

 

 

Railway Network

77.5

 

76.3

 

+2%

 

77.0

 

 

Other revenues

3.9

 

4.1

 

-5%

 

4.0

 

 

Sub-total Fixed Link

238.9

 

233.0

 

+3%

 

234.9

 

 

Europorte

30.1

 

30.3

 

-1%

 

30.3

 

 

Revenues

269.0

 

263.3

 

+2%

 

265.2

 

 

First quarter (January to March)

 

€ million

 

 

1st quarter 2018*

 

 

1st quarter 2017**

 

 

Change

 

 

1st quarter 2017

 

 

Exchange rate €/£

 

 

1.137

 

 

1.137

 

 

 

 

 

1.168

 

 

Shuttle Services

138.3

 

129.4

 

+7%

 

130.8

 

 

Railway Network

70.1

 

68.1

 

+3%

 

68.9

 

 

Other revenues

3.3

 

3.1

 

+5%

 

3.2

 

 

Sub-total Fixed Link

211.7

 

200.6

 

+6%

 

202.9

 

 

Europorte

29.7

 

28.9

 

+3%

 

28.9

 

 

Revenues

241.4

 

229.5

 

+5%

 

231.8

 

 

* Average exchange rate for the first quarter 2018: 1£ = €1.137.

** Recalculated at the exchange average rate of the first quarter of 2018.

 

FIXED LINK TRAFFIC

First half (January to June)

 

 

 

 

1st half-year 2018

 

 

1st half-year 2017

 

 

Change

 

 

Truck Shuttles

 

845,132

 

823,147

 

+3%

 

 

Passenger Shuttles

Cars*

1,163,054

 

1,138,087

 

+2%

 

 

Coaches

27,274

 

27,714

 

-2%

 

 

High-speed passenger trains (Eurostar)**

Passengers

5,198,821

 

5,040,425

 

+3%

 

 

Rail Freight***

Tonnes

670,853

 

601,237

 

+12%

 

 

Trains

1,060

 

1,043

 

+2%

 

 

Second quarter (April to June)

 

 

 

 

 

 

2nd quarter 2018          

 

 

      2nd quarter 2017

 

 

Change

 

 

 

Truck Shuttles

 

 

421,281

 

413,291

 

+2%

 

 

 

Passenger Shuttles

Cars*

675,851

 

671,525

 

+1%

 

 

 

Coaches

16,462

 

16,548

 

-1%

 

 

 

High-speed passenger trains (Eurostar)**

Passengers

2,819,078

 

2,769,754

 

+2%

 

 

 

Rail Freight***

Tonnes

298,692

 

292,512

 

+2%

 

 

 

Trains

484

 

500

 

-3%

 

 

First quarter (January to March)

 

 

 

 

1st quarter 2018   

 

 

 

1st quarter 2017

 

 

Change

Truck Shuttles

 

 

423,851

 

409,856

 

+3%

Passenger Shuttles

Cars*

487,203

 

466,562

 

+4%

Coaches

10,812

 

11,166

 

-3%

High-speed passenger trains (Eurostar)**

Passengers

2,379,743

 

2,270,671

 

+5%

Rail Freight***

Tonnes

372,161

 

308,725

 

+21%

Trains

576

 

543

 

+6%

 

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

** Only passengers using Eurostar to cross the Channel are included in this table, thus excluding those who travel between Continental stations (such as Brussels-Calais, Brussels-Lille, Brussels-Amsterdam).

*** Rail freight services by train operators (DB Cargo on behalf of BRB, SNCF and its subsidiaries, GB Railfreight, Rail Operations Group, RailAdventure and Europorte) using the Tunnel.

 

 

 

  1. All comparisons with the income statement for the first half of 2017 are made at the average exchange rate for the first half of 2018 of £1=€1.136.

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