Getlink: All-time record annual results in 2018
- Revenue increased by 5%1 to €1.079 billion
- EBITDA increased to €569 million (+9%)2
- Consolidated net profit of €130 million (+16%)
- Strong Free Cash Flow3 of €252 million, increased by €16 million
- On the strength of this exceptional performance, a 20% increase in the dividend will be proposed at the next AGM, on 18 April 2019, to €0.36 a share, above the announced target.
Jacques Gounon, Chairman and Chief Executive Officer of Getlink, stated,
“The Group has seen its ninth consecutive year of growth and has had an exceptional 2018 from both operational and financial perspectives with results that exceed market expectations. The Group is focusing on Brexit from a solid foundation in order to provide our customers with the best possible service whilst increasing our competitiveness.”
- Financial objectives for 2019
- Dividend 2019: €0.36 per share subject to approval at the AGM on 18 April 2019, an increase of 6 cents (1 cent above target);
- EBITDA4: €560 or €575 million depending on the border controls implemented by both States after 29 March 2019.
- Confirmed 2022 outlook
- EBITDA above €735 million;
- Dividend increase of 5 cents per year.
HIGHLIGHTS OF THE YEAR
- Entry of Altantia and Eiffage to the Group’s capital;
- First issue of Green Bonds for €550 million to finance the ElecLink project.
- In 2018, Le Shuttle trains carried 2.7 million passenger vehicles and 1.7 million trucks;
- Revenue for Le Shuttle activity increased by 6% compared to 2017, in line with the strategy of quality of service and premium policy;
- The Truck Shuttle service set a new traffic record, confirming the resilience of its economic model and by growing twice as fast as the UK economy;
- In 2018, Eurostar transported nearly 11 million passengers, a new all-time record exceeding the previous one by more than half a million passengers. This record is based on continued growth of existing markets and excellent results for the new London – Amsterdam service;
- Eurotunnel is ready for Brexit: the #BrexitAndBeyond campaign for stakeholders, including customers and the authorities, the optimisation of the two terminals, the creation of a veterinary and phytosanitary customs zone and border inspection post for the French authorities, the installation of e-gates for passengers and additional investments in information systems.
- Europorte posted revenue growth and a profitability increase of almost 30% using comparable accounting standards, ahead of its business plan and despite SNCF strikes in the second quarter of the year;
- Europorte posted a net profit before tax of €1.4 million, confirming the operational excellence of its teams.
- Investment: €213 million in 2018 and €453 million to date;
- Pulling of the cable through the Tunnel will start as soon as IGC approval is received;
- Operations are expected to start in 2020.
The Group’s consolidated revenue for the 2018 financial year amounts to €1.079 billion, an increase of €51 million (+5%) compared to 2017.
Operating costs amounted to €510 million, an increase of only €5 million compared to 2017.
Consolidated EBITDA amounted to €569 million, an improvement of €46 million compared to 2017 at constant exchange rates, of which €19 million is due to the application of the new IFRS 16 standard.
After taking into account the impact of IFRS 16 on depreciation charges (+€ 18 million) which offset the improvement in EBITDA, the trading profit increased by €24 million to €395 million (+6%).
The Group’s consolidated net result for the 2018 financial year is a profit of €130 million, compared to €112 million in 2017, up 16%.
Cash held at the end of December 2018 amounted to €607 million.
With confidence in the robustness of its business model and the very good results in 2018, the Group confirms its intention to accelerate the dividend policy for its shareholders. It will therefore propose at its AGM to increase the dividend to €0.36 per share for the 2018 financial year, an increase of 20% compared to 2017.
The current political situation, particularly in the United Kingdom, is likely to generate uncertainty about the short-term impact of the exit of the United Kingdom from the European Union on 29 March 2019. The Group considers that this uncertainty is likely to affect its activity in the first weeks following this date.
Confident in the commitment of both States to quickly set up effective border control procedures without any operational discontinuity, the Group sets a financial objective of an EBITDA for 2019 of €560 million in the case of a “no deal” or €575 million, if an agreement is reached, at an exchange rate of £1 = €1.128.
Nevertheless, and despite this short-term uncertainty, the Group remains very confident in the solidity of its various businesses and their medium-term growth potential. The Group still expects to exceed €735 million in EBITDA by 2022 (at £1 = €1.14).
Dates for your diary
18 April 2019: AGM
23 April 2019: 2019 first quarter revenue and traffic
23 July 2019: 2019 half-year results
The Board of Directors at its meeting on Wednesday 20 February 2019 under the chairmanship of Jacques Gounon, approved the financial statements for the year ending 31 December 2018.
The financial analysis of the consolidated financial statements is available on the Group’s website:
Getlink SE’s consolidated and parent company accounts for 2018 have been audited and certified by the statutory auditors.
Retrouvez les resultats complets dans le document joint.
- All comparisons with the 2017 income statement are based on the average exchange rate for 2018: £1=€1.128.
- Of which €19 million is due to the first-time adoption of the new IFRS 16 standard on leasing contracts (no restatement of the previous year).
- Excluding capital expenditure for ElecLink and net receipts from financial operations.
- At the rate of £1=€1.128 and current scope.