29/02/2024 - 7:34

2023 annual results: historic Group performance

29/02/2024 - 7:34
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Historic Group performance, boosted by an exceptional contribution from ElecLink.

Group

  • Revenue of €1.829 billion (+14%[1])
  • EBITDA of €979 million (+11%), after a provision of €156 million relating to the future sharing of ElecLink profits
  • Free cash flow[2] at €638 million
  • Cash position[3] at 31/12/2023 of €1.562 billion (+€366 million)
  • Consolidated net profit up 30% to €326 million

Eurotunnel

  • Revenue of €1.121 billion (+8%)
  • EBITDA at €582 million (-1%)

ElecLink

  • Revenue of €558 million (vs €420 million in 2022, with operations starting on 25 May 2022)
  • EBITDA of €368 million, after a provision of €156[4] million for future profit sharing

Europorte

  • Revenue of €150 million (+9%)
  • EBITDA at €29 million (stable)

 

Yann Leriche, Chief Executive Officer of Getlink, said: "In 2023, Getlink achieved unprecedented results thanks to the exceptional performance from ElecLink and the solid results of Eurotunnel and Europorte in challenging markets. This performance confirms the Group’s strategic choices to offer attractive, simple, and low-carbon services to its customers. In 2024, Getlink will further strengthen its operational excellence and agility to reinforce its competitive advantages, particularly in relation to smart borders. On 6 May 2024, the Channel Tunnel will celebrate its 30th anniversary. Green, augmented and digitalised, the Tunnel is the cornerstone of the decarbonisation of cross-Channel transports. The recent announcements from new operators wishing to launch high-speed passenger train services between London and continental Europe attest to its market potential”.

 

Outlook for 2024

In 2024, in the context of very intense competition in cross-Channel transport, Getlink will pursue its strategy of operational excellence and strengthening its agility in order to optimise the attractiveness of its services and its value creation.

    • Target EBITDA between €780 and €830 million[5] taking into account in particular:
      • The revenue already secured for ElecLink[6] (71% of the cable’s capacity has been sold for €292 million subject to the actual delivery of the service), recent prices on the electricity market (which show a foreseeable normalisation of Franco-British spreads compared to the exceptional levels recorded in 2022 and 2023) and using a similar method to that used for 2023 with regard to the provision for profit sharing.
      • The implementation of EES formalities from October 2024 on Eurotunnel sites, which has been the subject of intense preparation to turn it into a competitive advantage.
    • Payment of a dividend of €0.55 per share, subject to approval by the General Meeting of 7 May 2024, up 10% on the amount paid in 2023 and in line with the Group's desire to share value creation with its shareholders. The payment of this dividend would be effective on 5 June 2024.

 

HIGHLIGHTS OF THE PAST YEAR

CSR strategy

  • Reduction in greenhouse gas emissions (Scopes 1 and 2) of 10.5% in 2023 compared to 2022, confirming the Group's trajectory towards achieving a -30% reduction in its emissions in 2025, compared to 2019 emissions.
  • Alignment of 93% of Group revenue to European Taxonomy (93% in 2022).
  • Strong growth in the use of renewable energies (including fuels, electricity, etc.), reaching 61% in 2023 compared to 46% in 2022.
  • Creation of the decarbonised margin financial indicator, providing the Group with a management tool that links its financial and climate performance. In 2023, the Group's decarbonised margin reached 97% of its EBITDA margin (stable compared with 2022). This pioneering indicator has met with a strong external response and has been included in the 2024 edition of Vernimmen, a leading academic work in finance.
  • Launch of the "Climate Talks", in association with the Toulouse School of Economics. The first two sessions focused on ESG ratings (April) and the impact of corporate climate action on the weighted average cost of capital (October). A forum for exchange and debate aimed at decision-makers from the financial and corporate spheres, the "Climate Talks" benefit from first-rate academic support. This initiative contributes to raising the profile of the Group's CSR actions by comparing them with other companies’ practices.
  • With 28% of the top three management levels being women, the Group exceeded its target for a better representation of women (compared with the target of 25%), reflecting the impact of initiatives implemented on the ground, and relayed through management, to promote gender equal access to technical careers.

Group

  • Consolidated cash position of €1.562 billion at the end of December, up €366 million thanks to continued strong free cash flow generation.
  • Appointments of Marie Lemarié and Benoît de Ruffray to the Board by the General Meeting of 27 April 2023.
  • Co-optation of Jean Mouton as a non-independent Director to replace Carlo Bertazzo - former CEO of Mundys - who resigned.

Eurotunnel

  • Truck Shuttles: LeShuttle Freight
    • Traffic of 1.207 million trucks transported (-17%) penalised by a sluggish economic environment and by intensified competition from ferry companies deviating from the social models applicable to ships sailing under French and British flags. However, the Group confirmed its status as leader in the Short Straits cross-Channel market, with a 36% market share.
    • Launch of Sherpass, the digital platform for advanced border services.
    • Launch of Drivers Club, the first loyalty scheme for truck drivers.
  • Passenger Shuttles: LeShuttle
    • Confirmation of market leader status with 2.255 million passenger vehicles transported (up 6% on the 2022 level), representing a car market share of 58.4%.
    • Relaunch of a new brand identity in France and the United Kingdom, reflecting the strategic positioning of a simple, fast, seamless, and low-carbon service.
    • Continued roll-out of new customer services and marketing initiatives (new booking site, loyalty programme, etc.).
  • Railway Network
    • Eurostar traffic up 29%, with 10.7 million passengers transported.
    • Announcement by two new rail operators (Evolyn and Heuro) of plans to launch new high-speed passenger services via the Channel Tunnel to link London and continental Europe.
    • Creating the conditions for doubling direct high-speed links between Europe and the United Kingdom within 10 years, via the Channel Tunnel, by reducing the time-to-market of new services from 10 to 5 years.
  • Costs and capital expenditure
    • Eurotunnel's operating costs increased by €85 million (+19%), penalised in particular by the sharp rise in energy costs (+€40 million, i.e. +70%). Against this backdrop, the Group continued to apply operational discipline and to optimise its yield management strategy.
    • Capex of €159 million (excluding subsidy mentioned below), in line with the target of €160 million announced at the beginning of 2023, reflecting the acceleration of work to modernise rolling stock and adapt our terminals to the new border control systems (EES). These investments are aimed at improving our customer services and strengthening our competitive advantages.
    • Receipt of a public subsidy of €21 million from the French State to cover part of the cost of Brexit-related investment under an agreement signed in December 2023.

Europorte

  • Europorte's annual revenue up 9% to €150 million.
  • EBITDA stabilised at €29 million, penalised by cost inflation and strike action by the French network operator.
  • Targeted external growth with the acquisition of a majority stake in Renofer, a company specialising in rail maintenance and installation work, and the acquisition of a minority stake in TS Rail, which specialises in rail maintenance, work, and engineering studies.

ElecLink

  • Continued operational excellence, with cable availability of over 98% in 2023 and 5.5 TWh transported.
  • Revenue of €558 million for the first full year of operation of the interconnector, which started on 25 May 2022, up 33% on 2022.
  • EBITDA of €368 million (vs €264 million in 2022) after taking into account a profit-sharing provision of €156 million (€142 million in 2022). The total provision in respect of profit sharing under the ElecLink exemption, established in accordance with IAS 37, has been adjusted in 2023 to update underlying assumptions which take into account the normalisation of the electricity market.

 

FINANCIAL RESULTS

The Group's consolidated revenue for the 2023 financial year is €1.829 billion.

Consolidated current EBITDA amounted to €979 million, up 11% on 2022 thanks to the increased contribution from ElecLink.

The trading result amounted to €735 million, up 12% on 2022.

The Group's consolidated net profit for 2023 is €326 million, up 30% on 2022.

Cash, cash equivalents and cash management financial assets at 31 December 2023 reached a new record level of €1.562 billion, up by €366 million compared to 31 December 2022.The net debt decreased by €279 million (-7%) at €3,629 million.

 

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About Getlink

Getlink SE (Euronext Paris: GET), through its subsidiary Eurotunnel, is the concession holder until 2086 for the Channel Tunnel infrastructure and operates Truck Shuttles and Passenger Shuttles (cars and coaches) between Folkestone (UK) and Calais (France). Since 31 December 2020 Eurotunnel has been developing the smart border to ensure that the Tunnel remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. Since it opened in 1994, close to 500 million people and more than 102 million vehicles have travelled through the Channel Tunnel. This unique land link, which carries 25% of trade between the Continent and the United Kingdom, has become a vital link, reinforced by the ElecLink electricity interconnector installed in the Tunnel, which helps to balance energy needs between France and the United Kingdom. Getlink completes its sustainable mobility services with its rail freight subsidiary Europorte. Committed to "low-carbon" services that control their impact on the environment (through its activities, the Group avoids the equivalent of 1.9 million tonnes of CO2 per year), Getlink has made the place of people, nature and territories a central concern.

https://www.getlinkgroup.com

Upcoming events in 2024:

25 April 2024: traffic and revenue for the first quarter of 2024

7 May 2024: Getlink SE General Meeting

25 July 2024: half-year results 2024

Additional information:

The Board of Directors, chaired by Jacques Gounon, met on Wednesday 28 February 2024 to approve the financial statements for the year ended 31 December 2023. An unqualified auditor's report is currently being issued by the statutory auditors.

A financial analysis of the consolidated financial statements is available on the Group's website: www.getlinkgroup.com

 

Footnotes

 

  1. ^ [1] All comparisons with the 2022 income statement are made at the average 2023 exchange rate of £1 = €1.153.
  2. ^ [2] Defined as: cash flow from operating activities less capital expenditure and debt servicing.
  3. ^ [3] Including cash, cash equivalents and cash management financial assets.
  4. ^ [4] The total provision in respect of sharing of ElecLink’s profits, established in accordance with IAS 37, has been adjusted in 2023 to update underlying assumptions of the electricity market.
  5. ^ [5] Based on the current scope of consolidation and an exchange rate of £1/€1.15, assuming a constant regulatory and tax environment.
  6. ^ [6] As at 18 February 2024.