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Eurotunnel revenues up, operating costs down in first half of 2006
By Caroline Salls
Pittsburgh, July 17 - Eurotunnel SA said in a company news release that the radical reorientation of commercial and operating policy it undertook in 2005 has had a very positive effect on its operating results during the first six months of 2006.
Revenue has continued to progress, as the £277 million in revenue for the first half of the year is a 2% improvement over the first half of 2005 and is supported by a 3% growth in shuttle services activity.
Eurotunnel said the increase in revenue reflects the optimization of load factors, the introduction of a dynamic pricing model and the re-establishment of direct control over the sales and marketing of its truck service.
The company also saw a significant reduction in operating costs during the first half of 2006, with costs down by 9%, to £116 million.
The increase in revenue and the reduction in costs combine to give the company a 12% growth in the operating margin, which has risen to £161 million.
The profitability of Eurotunnel's activities, calculated by the relationship of the operating margin to revenue, reached a record level of 58% during the period.
For the second half of 2006, Eurotunnel said the situation created by the refusal of certain creditors to approve the proposed financial restructuring and the request for the safeguard procedure in France could have a negative impact on customer reservations or supplier demands.
"Eurotunnel's operating results for the first half of this year are very good," chairman and chief executive Jacques Gounon said in the release.
"This marked improvement is the tangible result of the considerable efforts made by the staff and shows the potential Eurotunnel has.
"It would be an injustice if these efforts were reduced to nothing by the refusal of creditors to reach a rapid solution to the question of the debt."
Eurotunnel is the Paris-based operator of the Channel Tunnel.
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