Eurotunnel has improved its financial performance to edge into a pro-forma, first time profit of US$2M for 2007 on its underlying business, but the improvement in net earnings was much more after financial restructuring benefits.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was 12% higher at almost US$880M, on revenues 6% higher at US$1.55bn.
The trading profit jumped 22% to US$554M but, after the exceptional profit of US$6.64bn due to the restructuring, the net earnings were effectively equivalent to that huge saving. Debt servicing was cut down by 40% by the financial restructuring.
The company said that the improved performance was aided by further income from Eurostar passenger trains following the full opening of the high-speed rail link (HS-1) to London, although that was late in the year. Eurostar passenger volumes increased 5% to 8.26M.
In addition, Eurotunnel also benefited from increased traffic levels for its core business of car and freight shuttles between Folkestone and Calais, which saw revenues lift 8% to US$1bn. Vehicle traffic was 8% up to 1.4M lorries and 2.14M cars.
In the first quarter of this year the increase in traffic was proving to be sustained, Eurotunnel added.
