Half-year results 2024: Robust half-year results, annual EBITDA guidance confirmed
Group:
- Revenue: €808 million (-14%[1] due to the normalisation of ElecLink's contribution)
- EBITDA[2]: €424 million (-15%) after a provision of €55 million relating to the future sharing of ElecLink’s profits
- Net profit: €173 million, an improvement of +7%
- Cash position[3]: €1,497 million at 30 June 2024 (an improvement of €203 million vs. 30 June 2023)
- Target EBITDA for 2024 between €780 and €830 million confirmed
Eurotunnel:
- Revenue of €540 million (+1%)
- EBITDA at €291 million (+4%)
ElecLink:
- Revenue of €185 million (vs. €330 million in H1 2023)
- EBITDA at €117 million (vs. €207 million in H1 2023), after a provision of €55 million for future sharing of the interconnector’s profits
Europorte:
- Revenue of €83 million (+14%)
- EBITDA at €16 million (+23%)
Yann Leriche, Getlink's Chief Executive Officer, commented: "The half-year performance reflects the normalisation of the energy markets and consequently ElecLink's contribution to the Group's results. Thanks to the continuation of its operational and commercial excellence programmes as well as the good momentum of passenger traffic, Getlink reports solid results, enabling us to confirm our targets for 2024.”
Half-Year Highlights
Governance
- Yann Leriche's term of office as Chief Executive Officer expired on 30 June 2024; the term was renewed for four years by the Board of Directors.
- Géraldine Périchon, the Group's Chief Financial Officer since September 2020 and a member of the Executive Committee, has been appointed Deputy CEO.
- The Annual General Meeting held on 7 May 2024 approved the amendment to Article 19 of the Articles of Association relating to the age limit for the Chairman, who has reached the age of 70, to maintain the Chairman in office until the end of his term of office as Director, i.e. until the 2026 Annual General Meeting, approving the financial statements for the year ending 31 December 2025.
- The Annual General Meeting also approved the renewal of the terms of office as Directors of Sharon Flood and Jean-Marc Janaillac for a period of four years. The meeting approved the ratification of the co-option of Jean Mouton as Director.
CSR strategy
- Focusing actions to achieve decarbonisation milestones by 2024-2025 in line with the Paris Agreement's 1.5°C trajectory.
- Third edition of the Rencontres du Climat held at the Ministry of Ecological Transition and Territorial Cohesion, in the presence of the French Minister.
Group
- EBITDA at €424 million post-provision for ElecLink profit-sharing of €55 million.
- Free cash flow of €274 million[4].
- Distribution of €298 million in dividends (€0.55 per share) for 2023 financial year.
- Acquisition of ChannelPorts, a leader in the UK customs services market, strengthening the Group's portfolio of smart border solutions.
- Getlink's credit rating upgraded to BB by S&P Global Ratings (previously BB-).
Eurotunnel
- LeShuttle
- Decrease in traffic by 4%, with 967,962 passenger vehicles transported, impacted by intensifying competition from ferry companies, some of which are deviating from the social models applicable in the United Kingdom and France.
- Confirmation of leadership position on the car market with a 59% market share.
- Continuation of the commercial excellence strategy with the launch of new initiatives to improve customer experience: new duty-free partner in France, new booking website, new partnerships signed.
- LeShuttle Freight
- Truck traffic down 4%, penalised by a weak economic environment in the United Kingdom and continuing fierce competition from ferry operators.
- 36% market share.
- Railway network
- Eurostar traffic up 6%, with almost 5.4 million passengers, exceeding the record level of H1 2019.
Europorte
- Revenue growth of 14% due to acquisitions completed in 2023 and the signing of new contracts.
- Improved profitability with EBITDA up 23%.
ElecLink
- Revenue of €185 million, down 44%, impacted by the expected normalisation of electricity markets.
- EBITDA at €117 million, down 43%, after taking into account a profit-sharing provision of €55 million.
- Outstanding operational performance, with more than 3.5 TWh transported in the first half of the year and an availability rate of 100%.
- €139 million of revenue already contracted for H2[5], with 29% of cable capacity still available for H2.
Operating profit impacted - as expected - by the normalisation of the electricity markets
The Group's consolidated revenue for the first half of 2024 is €808 million, down 14% compared to the first half of 2023, reflecting the expected normalisation of the electricity markets. Eurotunnel (+1%) and Europorte (+14%) reported solid revenue growth.
The Group's operating costs excluding the provision for ElecLink profit sharing were stable in H1, at €329 million. Eurotunnel segment operating costs were down 3% to €249 million thanks to lower energy costs and ongoing efficiency programmes.
Consolidated EBITDA for the first half amounted to €424 million, down 15% due to the lower contribution from ElecLink (-43%), whilst EBITDA for Eurotunnel and Europorte increased by 4% and 23% respectively.
Net finance costs fell by 24% to €144 million for the first six months of 2024.
Taxes represented net income of €15 million (vs. an expense of €28 million in the first half of 2023), reflecting the lower pre-tax income of ElecLink and the impact of the activation of tax loss carryforwards on deferred taxes.
The Group's consolidated net profit for the first half of 2024 reaches €173 million, up 7% compared to the first six months of 2023.
Operating cash flow was €457 million in the first half of 2024, compared with €539 million in the first half of 2023.
The Group's free cash flow was €274 million in the first half of 2024, down €81 million for the same period in 2023, due to the lower contribution from ElecLink.
Cash position at 30 June 2024 was €1,497 million (compared with €1,294 million at 30 June 2023).
GUIDANCE
The performance of the first half of 2024 enables the Group to confirm its EBITDA target in 2024 to be between €780 million and €830 million[6].
This target takes into account:
- The revenue already secured for ElecLink (at 30 June, 85% of the cable's 2024 capacity has been sold for a revenue of €324 million subject to actual delivery of the service), recent electricity market prices and using a similar method to that used for 2023 with regard to the provision for profit sharing.
- The implementation of EES formalities, during the 4th quarter, on Eurotunnel’s sites, which has been the subject of intense preparation to turn it into a competitive advantage.
In the second half of 2024, against a backdrop 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.
GROUP REVENUE
First half-year (January-June)
Second quarter (April-June)
First-quarter reminder (January-March)
EUROTUNNEL TRAFFIC
First half-year (January-June)
Second quarter (April-June)
First-quarter reminder (January-March)
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The financial statements of the period ending 30 June 2024 were established by the Board of Directors on 24 July 2024 and were subject to a review by the statutory auditors.
The H1 2024 results presentation is available at https://www.getlinkgroup.com.
Q3 2024 revenues will be announced on 17 October 2024.
Disclaimer: All forward-looking statements in this presentation are Getlink SE management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the section “Risk Factors” in our Universal Registration Document and documents filed by the Group with the French securities regulator (AMF) (available on the Group’s website https://www.getlinkgroup.com). Getlink SE undertakes no obligation to publicly update or revise any of these forward-looking statements.
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 a quarter 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.
Footnotes
- ^ [1] All comparisons with the income statement for the first half of 2023 are made at the average exchange rate for the first half of 2024 of £1=€1.172.
- ^ [2] In this release, “EBITDA” is equivalent to “current EBITDA” as defined in note D.4 of the 2023 consolidated financial statements: it is calculated by adding back depreciation charges to the trading profit.
- ^ [3] In this release, “cash” includes cash, cash equivalents and cash management financial assets.
- ^ [4] Free cash flow represents the cash generated by current activities. This indicator is defined in “other financial indicators” section of the Group’s 2024 half-year financial report. This indicator does not include payments linked to the interconnector profit-sharing mechanism.
- ^ [5] At 30 June 2024, subject to actual delivery of service.
- ^ [6] Target set based on the current scope of consolidation and an exchange rate of £1=€1.15, assuming a constant regulatory and fiscal environment.
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