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Recovering British economy lifts Eurotunnel third-quarter revenue

Published 22/10/2014, 08:19
Recovering British economy lifts Eurotunnel third-quarter revenue
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PARIS (Reuters) - Eurotunnel said on Wednesday that third-quarter revenue rose 7 percent to 343.9 million euros (271.3 million pounds), driven by a recovering British economy and strong truck, freight and passenger traffic.

The operator of the Channel Tunnel linking France and Britain carries Eurostar high-speed trains between Paris, Brussels and London, as well as shuttle trains containing passenger cars, coaches and freight trucks.

"This summer Eurotunnel set new records for traffic and this momentum is continuing," Chief Executive Jacques Gounon said in a statement.

Passenger traffic in the quarter rose 3 percent year-on-year on the Eurostar to 2.8 million passengers. Traffic rose 6 percent on trucks but fell 7 percent on coaches compared with the same period last year. Rail freight tonnage rose 17 percent year-on-year, the company added.

The loss-making MyFerryLink ferry service achieved revenue growth of 20 percent at 30.3 million euros and now accounts for 8 percent of group revenue.

The future of the ferry business launched in 2012 was dealt a blow in June when Britain's competition regulator said Eurotunnel would have to stop operating the service in the next six months, confirming a decision it made in May.

Eurotunnel has appealed against the decision that it said would mean higher prices for consumers and put 600 people out of work. An appeal hearing is slated for Nov. 24-25.

Eurotunnel shares are down about 20 percent since the start of this year, giving the group a market value of 5.1 billion euros. The stock was up 1.1 percent in early trading on Wednesday.

(Reporting by Dominique Vidalon; Editing by James Regan)

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