Eurotunnel Announces 2001 Third Quarter Results.

Business Editors

PARIS--(BUSINESS WIRE)--Oct. 16, 2001

Eurotunnel, the operator of the high-speed transport system linking the UK to Continental Europe through the Channel Tunnel, today announced its 2001 third quarter results.

- Quality of service restored following



		

		

		

		

		

		
		
			

 

		
		
		
		
		
	

 reinforced protection of the French
terminal against intrusions by asylum seekers

- Sustained growth in truck traffic (+6%)

- Increase in target passenger traffic: short and medium break stays (+5%)

- Slight increase in revenue from core transport business (+1%)

- Operating revenue down by 3% due to the absence of telecommunication cable
sales

Eurotunnel's operating revenue for the third quarter 2001 is (pound)144.1 million, down 3% at constant exchange rates on the third quarter of 2000 ((pound)148.0 million).

Revenue from Eurotunnel's core transport business (Eurotunnel shuttles and Railways) is up 1% on the third quarter of 2000 ((pound)139.2 million against (pound)137.5 million), and represents 97% of turnover.

----------------------------------------------------------------------
(pound)million   3rd Quarter     3rd Quarter    % change   3rd Quarter
                 2001            2000                      2000
                 unaudited (a)   restated (a)              reported

Shuttle services     85.9           85.1          + 1%        83.6
----------------------------------------------------------------------
Railways             53.3           52.4          + 2%        51.4
----------------------------------------------------------------------
Non transport
 activities           4.9           10.5         - 53%        10.1
----------------------------------------------------------------------
Operating revenue   144.1          148.0          - 3%       145.1
----------------------------------------------------------------------

(a) The exchange rate applicable for the year to 30 September 2001 and
    for the restated year to 30 September 2000 is (pound)1 = FRF
    10.666. The equivalent 2000 exchange rate was (pound)1 = FRF 10.7

      I. Transport activity

      Shuttle services

      The operating revenue from Shuttle services is (pound)85.9
million, an increase of 1% at constant exchange rates compared with
the third quarter of 2000.

                ------------------------------------------------------
                3rd Quarter 2001  3rd Quarter 2000  % change  % change
                                                              in
                                                              market
                                                              size (a)
----------------------------------------------------------------------
Freight shuttles    287,140 trucks   272,052 trucks    + 6 %     + 7 %
----------------------------------------------------------------------
Passenger shuttles  703,552 cars(b)  749,927 cars(b)   - 6 %     - 2 %

                     19,621 coaches   20,778 coaches   - 6 %     - 8 %
----------------------------------------------------------------------
(a) Dover-Folkestone/Calais market

(b) Including motorcycles, vehicles with trailers, caravans and
    campervans

Freight shuttles

The period has seen a sustained growth in truck traffic (+6%), despite being affected by the nightly incursions of would be stowaways onto the French terminal. Operating conditions had been affected since the spring by a massive influx of asylum seekers.

The considerable investment made by Eurotunnel during the summer to make the freight boarding area more secure and the strengthening of security measures have gradually restored the quality of service, which is now at a satisfactory level.

Passenger shuttles

Passenger traffic (cars and coaches) reduced by 6%. This is entirely due to the reduction in the number of passengers who used to travel to buy large quantities of goods such as alcohol and tobacco ("express shoppers"), and who paid very low fares for their day trip tickets. By contrast Eurotunnel's key passenger market segment in terms of revenues, short break and medium stays, has seen a 5% increase in volume. This change in customer patterns has led to an increase in average passenger yield, and a slight rise in revenue from the passenger shuttle activity.

      Railways

                  ----------------------------------------------------
                  3rd Quarter 2001   3rd Quarter 2000     % change
----------------------------------------------------------------------
Eurostar          2,042,043            2,098,920           - 3 %
                  passengers(a)        passengers(a)
----------------------------------------------------------------------
Freight trains    633,105 tonnes       713,601 tonnes     - 11 %
----------------------------------------------------------------------

(a) The passenger number given is for passengers carried by Eurostar
    through the Channel Tunnel, and excludes passengers between
    Paris/Calais or Brussels/Lille.

Revenues from Railways ((pound)53.3m) increased by 2% and consist mainly of payments guaranteed under the Minimum Usage Charge.

The number of passengers carried by Eurostar through the Channel Tunnel in the third quarter of 2001 fell by 3% compared with the third quarter of 2000, and the tonnage carried by rail freight services, operated by SNCF and EWS, fell by 11% during the same period.

II. Non-transport activities

Revenue from non-transport activities are down by 53% due to the absence of telecommunication cable sales in the third quarter 2001 (compared with one cable sold in the third quarter of 2000).

This activity now only represents 3% of Eurotunnel's revenue, compared with 7% for the third quarter of 2000.

Philippe Lazare, Eurotunnel Chief Executive Officer, said:

"The quality of our freight service has been restored after we put in a very considerable effort. The truck market continues to grow and our priority now is to return to more realistic prices for this service. The most profitable segment of the passenger market appears to be picking up.

"The impact of recent events should be limited, although customer confidence in transport could still be affected by unforeseen events. So far, there has been no significant impact on our freight business and no adverse effect on our passenger shuttle business. Indeed, in certain key passenger business segments - short breaks and medium length stays - we are seeing increased bookings from now until the end of the year."

Additional information on Eurotunnel can be accessed on the company's home page: http://www.eurotunnel.com