Eurotunnel, the heavily indebted Anglo-French channel tunnel operator, has reported a 1% rise in revenue last year to €793m, but it said freight traffic dropped. The transport activities generated a 2% rise in revenues to €777m.
The revenue from its shuttle trains business was up by 4%, the first increase for Eurotunnel's principal activity since 2002. Truck traffic for the shuttle business was up 2%, accompanied by a substantial increase in yield, it said. Car traffic was down by 3%.
Eurotunnel said the decline should be viewed in the context of a voluntary reduction of about 20% in capacity during 2005, which has significantly increased shuttle loadings. Coach traffic was up by 22% and railway revenues were stable at €344m.
Although Eurostar traffic continues to increase, rail freight tonnage, transported by the railway operators EWS and SNCF Freight, shows a decline of 16% for the year.
Eurostar, the separate passenger train service linking London to Paris, Brussels and other destinations through the tunnel, earlier today reported 7% higher 2005 sales of £464m.
Eurotunnel changed its business strategy in 2005, including how it charges tunnel users, to better exploit times of heightened demand. The company is in talks with its banks to cut debts of £6.2 billion by more than half and has until January 31 to agree a deal or else request permission to extend the period for the talks.
