25th Jan 2005 07:30
Eurotunnel PLC/Eurotunnel S.A.25 January 2005 EMBARGO: Not for release before 0730 hours (UK time) on Tuesday, 25 January 2005 TRADING UPDATE: 2004 REVENUE & TRAFFIC Eurotunnel, operator of the Channel Tunnel, today reported revenue and trafficfigures for the year-ended 31 December 2004. Jean-Louis Raymond, Chief Executive, said: "The cross-Channel market has remained difficult for all operators, as it hasfor Eurotunnel. "The improvement in Eurostar traffic over the last year has certainly beenencouraging, but competitive pressure remains strong and the impact on themarket of the development of 'no-frills' airlines is being felt ever morestrongly. "Making sure that Eurotunnel remains competitive in the future has required aradical change in commercial policy. "This is why a new commercial strategy has been in place in the Truck businesssince 1 January 2005. It reinforces the Eurotunnel shuttles' specific strengthsto the market: speed, frequency and reliability. The new Passenger strategy willbe launched in time for the summer. "At the same time, the policy of controlling costs continues to bear fruit. "By combining these initiatives, Eurotunnel has given itself the means tostabilise revenues and to restore margins." Traffic 2004 2003 % change % market change* Truck Shuttles 1 281 207 trucks 1 284 875 trucks 0% + 6% Passenger Shuttles 2 101 323 cars** 2 278 999 cars** - 8% - 6% 63 467 coaches 71 942 coaches - 12% - 4% * Short Straits market: Folkestone-Dover/Boulogne-Calais-Dunkerque-Zeebrugge ** including motorcycles, cars with trailers, caravans and campervans Revenue £ million 2004 2003 2004/2003 2003 unaudited restated(1) % change publishedExchange rate •/£ 1.466 1.466 1.435 Shuttle Services 285 306 - 7% 309 Railways 234 230 + 2% 232 Transport activities 519 536 - 3% 541 Non-transport activities 19 24 - 23% 25 Operating revenue 538 560 - 4% 566 (1) 2003 operating revenue has been restated at an exchange rate of £1=€1.466to permit a direct comparison with 2004. Shuttle Services Truck Shuttles Overall, the Short Straits truck market returned to growth in 2004. Eurotunnelcarried 1,281,207 trucks in 2004, a similar result to that achieved in 2003.Eurotunnel did not benefit from the growth in the market stimulated,predominantly, by increased trade from the former Eastern bloc countriesfollowing their accession to the EU in May 2004, and by the continuing shiftfrom trucks to containerised units which benefits the northern part of theoverall UK-Continental market. The benefits of a faster crossing via theChannel Tunnel make less impact on such long-distance logistics chains. Passenger Shuttles The Short Straits car market fell by 6% in 2004. Eurotunnel carried 2,101,323cars, representing an 8% fall in traffic. The car market continued to contractthroughout 2004, whilst traditional ferry operators, new entrants, and the 'no-frills' airlines maintained strong competitive pressure. The Short Straits coach market fell by 4% in 2004 as scheduled cross-Channelcoach services continued to contract. Eurotunnel's greater dependence on thescheduled coach market together with continued expansion from 'no-frills'airlines resulted in a 12% fall in volume to 63,467 coaches in 2004. Railways (Eurostar & rail freight) The Channel Tunnel is also used by rail services not managed by Eurotunnel -Eurostar for high-speed passenger-only services on London/Paris and London/Brussels, and EWS and SNCF for international rail freight services. Eurostar The number of passengers carried through the Channel Tunnel by Eurostar rose by15% in 2004 to 7,276,675 passengers (excludes domestic passengers between Paris/Calais and Brussels/Lille.) Rail freight Rail freight tonnage carried through the Channel Tunnel increased by 8% to1,889,175 tonnes in 2004. Revenues from Eurostar and rail freight services through the Tunnel areprotected by the Minimum Usage Charge (MUC) paid to Eurotunnel by the Railways.Despite these increases, traffic from the Railways remains significantly belowlevels required to exceed MUC payments. Consequently, the revenue increase inthis sector was only 2% to £234 million. Payments under the MUC continue untilthe end of November 2006. Non-transport activities Revenue of £19 million from non-transport activities was 23% lower than in 2003due to lower revenues from telecoms, land sales and retail. Media enquiries:John Keefe/Kevin Charles, tel: + 44 (0) 1303 288728 Investor enquiries:Xavier Clement, tel: + 33 1 55 27 36 27 News release no. 923 Eurotunnel manages the infrastructure of the Channel Tunnel and operatesaccompanied truck shuttle and passenger shuttle (car and coach) services betweenFolkestone, UK and Calais/Coquelles, France. Eurotunnel also earns toll revenuefrom other train operators (Eurostar for rail passengers, and EWS and SNCF forrail freight) which use the Tunnel. Eurotunnel is quoted on the London, Parisand Brussels Stock Exchanges. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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