-
Group
- Revenue of €1.829 billion (+14%1)
- EBITDA of €979 million (+11%), after a provision of €156 million relating to the future sharing of ElecLink profits
- Free cash flow2 at €638 million
- Cash position3 at 31/12/2023 of €1.562 billion (+€366 million)
- Consolidated net profit up 30% to €326 million
-
Eurotunnel
- Revenue of €1.121 billion (+8%)
- EBITDA at €582 million (-1%)
-
ElecLink
- Revenue of €558 million (vs €420 million in 2022, with operations starting on 25 May 2022)
- EBITDA of €368 million, after a provision of €1564 million for future profit sharing
-
Europorte
- Revenue of €150 million (+9%)
- EBITDA at €29 million (stable)
PARIS–(BUSINESS WIRE)–Regulatory News:
Getlink SE (Paris:GET):
Yann Leriche, Chief Executive Officer of Getlink, said: “In 2023, Getlink achieved unprecedented results thanks to the exceptional performance from ElecLink and the solid results of Eurotunnel and Europorte in challenging markets. This performance confirms the Group’s strategic choices to offer attractive, simple, and low-carbon services to its customers. In 2024, Getlink will further strengthen its operational excellence and agility to reinforce its competitive advantages, particularly in relation to smart borders. On 6 May 2024, the Channel Tunnel will celebrate its 30th anniversary. Green, augmented and digitalised, the Tunnel is the cornerstone of the decarbonisation of cross-Channel transports. The recent announcements from new operators wishing to launch high-speed passenger train services between London and continental Europe attest to its market potential”.
> Outlook for 2024
In 2024, in the context of very intense competition in cross-Channel transport, Getlink will pursue its strategy of operational excellence and strengthening its agility in order to optimise the attractiveness of its services and its value creation.
-
Target EBITDA between €780 and €830 million5 taking into account in particular:
- The revenue already secured for ElecLink6 (71% of the cable’s capacity has been sold for €292 million subject to the actual delivery of the service), recent prices on the electricity market (which show a foreseeable normalisation of Franco-British spreads compared to the exceptional levels recorded in 2022 and 2023) and using a similar method to that used for 2023 with regard to the provision for profit sharing.
- The implementation of EES formalities from October 2024 on Eurotunnel sites, which has been the subject of intense preparation to turn it into a competitive advantage.
- Payment of a dividend of €0.55 per share, subject to approval by the General Meeting of 7 May 2024, up 10% on the amount paid in 2023 and in line with the Group’s desire to share value creation with its shareholders. The payment of this dividend would be effective on 5 June 2024.
HIGHLIGHTS OF THE PAST YEAR
> CSR strategy
- Reduction in greenhouse gas emissions (Scopes 1 and 2) of 10.5% in 2023 compared to 2022, confirming the Group’s trajectory towards achieving a -30% reduction in its emissions in 2025, compared to 2019 emissions.
- Alignment of 93% of Group revenue to European Taxonomy (93% in 2022).
- Strong growth in the use of renewable energies (including fuels, electricity, etc.), reaching 61% in 2023 compared to 46% in 2022.
- Creation of the decarbonised margin financial indicator, providing the Group with a management tool that links its financial and climate performance. In 2023, the Group’s decarbonised margin reached 97% of its EBITDA margin (stable compared with 2022). This pioneering indicator has met with a strong external response and has been included in the 2024 edition of Vernimmen, a leading academic work in finance.
- Launch of the “Climate Talks“, in association with the Toulouse School of Economics. The first two sessions focused on ESG ratings (April) and the impact of corporate climate action on the weighted average cost of capital (October). A forum for exchange and debate aimed at decision-makers from the financial and corporate spheres, the “Climate Talks” benefit from first-rate academic support. This initiative contributes to raising the profile of the Group’s CSR actions by comparing them with other companies’ practices.
- With 28% of the top three management levels being women, the Group exceeded its target for a better representation of women (compared with the target of 25%), reflecting the impact of initiatives implemented on the ground, and relayed through management, to promote gender equal access to technical careers.
> Group
- Consolidated cash position of €1.562 billion at the end of December, up €366 million thanks to continued strong free cash flow generation.
- Appointments of Marie Lemarié and Benoît de Ruffray to the Board by the General Meeting of 27 April 2023.
- Co-optation of Jean Mouton as a non-independent Director to replace Carlo Bertazzo – former CEO of Mundys – who resigned.
> Eurotunnel
-
Truck Shuttles: LeShuttle Freight
- Traffic of 1.207 million trucks transported (-17%) penalised by a sluggish economic environment and by intensified competition from ferry companies deviating from the social models applicable to ships sailing under French and British flags. However, the Group confirmed its status as leader in the Short Straits cross-Channel market, with a 36% market share.
- Launch of Sherpass, the digital platform for advanced border services.
- Launch of Drivers Club, the first loyalty scheme for truck drivers.
-
Passenger Shuttles: LeShuttle
- Confirmation of market leader status with 2.255 million passenger vehicles transported (up 6% on the 2022 level), representing a car market share of 58.4%.
- Relaunch of a new brand identity in France and the United Kingdom, reflecting the strategic positioning of a simple, fast, seamless, and low-carbon service.
- Continued roll-out of new customer services and marketing initiatives (new booking site, loyalty programme, etc.).
-
Railway Network
- Eurostar traffic up 29%, with 10.7 million passengers transported.
- Announcement by two new rail operators (Evolyn and Heuro) of plans to launch new high-speed passenger services via the Channel Tunnel to link London and continental Europe.
- Creating the conditions for doubling direct high-speed links between Europe and the United Kingdom within 10 years, via the Channel Tunnel, by reducing the time-to-market of new services from 10 to 5 years.
-
Costs and capital expenditure
- Eurotunnel’s operating costs increased by €85 million (+19%), penalised in particular by the sharp rise in energy costs (+€40 million, i.e. +70%). Against this backdrop, the Group continued to apply operational discipline and to optimise its yield management strategy.
- Capex of €159 million (excluding subsidy mentioned below), in line with the target of €160 million announced at the beginning of 2023, reflecting the acceleration of work to modernise rolling stock and adapt our terminals to the new border control systems (EES). These investments are aimed at improving our customer services and strengthening our competitive advantages.
- Receipt of a public subsidy of €21 million from the French State to cover part of the cost of Brexit-related investment under an agreement signed in December 2023.
> Europorte
- Europorte’s annual revenue up 9% to €150 million.
- EBITDA stabilised at €29 million, penalised by cost inflation and strike action by the French network operator.
- Targeted external growth with the acquisition of a majority stake in Renofer, a company specialising in rail maintenance and installation work, and the acquisition of a minority stake in TS Rail, which specialises in rail maintenance, work, and engineering studies.
> ElecLink
- Continued operational excellence, with cable availability of over 98% in 2023 and 5.5 TWh transported.
- Revenue of €558 million for the first full year of operation of the interconnector, which started on 25 May 2022, up 33% on 2022.
- EBITDA of €368 million (vs €264 million in 2022) after taking into account a profit-sharing provision of €156 million (€142 million in 2022). The total provision in respect of profit sharing under the ElecLink exemption, established in accordance with IAS 37, has been adjusted in 2023 to update underlying assumptions which take into account the normalisation of the electricity market.
FINANCIAL RESULTS
The Group’s consolidated revenue for the 2023 financial year is €1.829 billion.
Consolidated current EBITDA amounted to €979 million, up 11% on 2022 thanks to the increased contribution from ElecLink.
The trading result amounted to €735 million, up 12% on 2022.
The Group’s consolidated net profit for 2023 is €326 million, up 30% on 2022.
Cash, cash equivalents and cash management financial assets at 31 December 2023 reached a new record level of €1.562 billion, up by €366 million compared to 31 December 2022. The net debt decreased by €279 million (-7%) at €3,629 million.
***************************
About Getlink
Getlink SE (Euronext Paris: GET), through its subsidiary Eurotunnel, is the concession holder until 2086 for the Channel Tunnel infrastructure and operates Truck Shuttles and Passenger Shuttles (cars and coaches) between Folkestone (UK) and Calais (France). Since 31 December 2020 Eurotunnel has been developing the smart border to ensure that the Tunnel remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. Since it opened in 1994, close to 500 million people and more than 102 million vehicles have travelled through the Channel Tunnel. This unique land link, which carries 25% of trade between the Continent and the United Kingdom, has become a vital link, reinforced by the ElecLink electricity interconnector installed in the Tunnel, which helps to balance energy needs between France and the United Kingdom. Getlink completes its sustainable mobility services with its rail freight subsidiary Europorte. Committed to “low-carbon” services that control their impact on the environment (through its activities, the Group avoids the equivalent of 1.9 million tonnes of CO2 per year), Getlink has made the place of people, nature and territories a central concern.
Upcoming events in 2024:
25 April 2024: traffic and revenue for the first quarter of 2024
7 May 2024: Getlink SE General Meeting
25 July 2024: half-year results 2024
Additional information:
The Board of Directors, chaired by Jacques Gounon, met on Wednesday 28 February 2024 to approve the financial statements for the year ended 31 December 2023. An unqualified auditor’s report is currently being issued by the statutory auditors.
A financial analysis of the consolidated financial statements is available on the Group’s website: www.getlinkgroup.com
REVIEW OF THE CONSOLIDATED RESULTS AND FINANCIAL SITUATION FOR THE YEAR ENDED 31 DECEMBER 2023
The following information relating to Getlink SE’s financial situation and consolidated results must be read in conjunction with the consolidated financial statements set out in section 2.2.1 of the 2023 Universal Registration Document.
Accounting standards applied and presentation of the consolidated results
Pursuant to EC Regulation 297/2008 of 11 March 2008 on the application of international accounting standards, the consolidated financial statements of Getlink SE for the financial year ended 31 December 2023 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union at 31 December 2023.
Context of the preparation of the consolidated annual financial statements
The Group’s results for the 2023 financial year have improved significantly compared with 2022, thanks to the full-year impact of ElecLink activity (the electricity interconnector came into operation on 25 May 2022) and continued recovery in the cross-Channel passenger markets, in particular in Eurostar traffic. However, the cross-Channel truck market continues to be depressed, impacted both by the continuing effect of Brexit and the impact of the weakened economic climate in the United Kingdom, and in a market that is highly competitive.
The global geopolitical context, and in particular the conflicts in Ukraine since February 2022 and in the Middle East since October 2023, continues to have major repercussions on the world economy. The sharp rise in inflation and energy costs since the end of 2021 is reflected in a significant increase in some of the Group’s costs, notably Eurotunnel’s and Europorte’s traction energy costs, as well as in the financial charges on the inflation-linked tranches of Eurotunnel’s Term Loan compared to the pre-crisis period in 2019.
During 2023, the Group has continued to prepare for the future through its capital expenditure programme while continuing its strategy of prudent cash management. The Group has maintained its high level of liquidity, with cash and cash management financial assets at 31 December 2023 of €1,562 million.
Further details of recent developments in the Group’s results are set out in the sections below.
1 ANALYSIS OF CONSOLIDATED INCOME STATEMENT
In order to enable a better comparison between the two years, the 2022 consolidated income statement presented in this section has been recalculated at the exchange rate used for the 2023 income statement of £1=€1.153.
Summary
At €1,829 million, the Group’s consolidated revenue for the 2023 financial year increased by €230 million (14%) compared to 2022 thanks in large part to ElecLink’s contribution over the full 12-month period compared to seven months in 2022 (+€138 million) as well as to the continued recovery in passenger traffic for Shuttle and Eurostar. Operating costs of €850 million were up by €132 million (18%) compared to 2022, of which €34 million was due to the full year activity of ElecLink reflecting notably the provision for the interconnector’s profit sharing. At €979 million for 2023, EBITDA improved by €98 million compared to 2022. At €735 million, the trading profit in 2023 was up by €81 million compared to 2022. After taking into account net financial expenses (including other financial income and charges) which were €87 million lower thanks to the impact of the slowdown of inflation on the indexation cost of the A tranches of Eurotunnel’s debt, the Group’s pre-tax profit improved by €149 million to €414 million for 2023, compared to €265 million in 2022.
After taking into account a net tax charge of €88 million (up by €73 million due to ElecLink), the Group’s net consolidated result for the 2023 financial year was a profit of €326 million, compared to the profit of €250 million (restated) in 2022, an improvement of €76 million.
|
|
|
|
|
|
|
|
€ million |
2023 |
2022 |
Change |
2022 |
|
|
Improvement/(deterioration) of result |
|
restated* |
€M |
% |
published |
|
Exchange rate €/£ |
1.153 |
1.153 |
|
|
1.168 |
|
Eurotunnel |
1,121 |
1,042 |
79 |
+8% |
1,049 |
|
Europorte |
150 |
137 |
13 |
+9% |
137 |
|
ElecLink |
558 |
420 |
138 |
+33% |
420 |
|
Revenue |
1,829 |
1,599 |
230 |
+14% |
1,606 |
|
Eurotunnel |
(539) |
(454) |
(85) |
-19% |
(456) |
|
Europorte |
(121) |
(108) |
(13) |
-12% |
(108) |
|
ElecLink |
(190) |
(156) |
(34) |
-22% |
(156) |
|
Operating costs |
(850) |
(718) |
(132) |
-18% |
(720) |
|
Current EBITDA** |
979 |
881 |
98 |
+11% |
886 |
|
Depreciation |
(244) |
(227) |
(17) |
-7% |
(227) |
|
Trading profit |
735 |
654 |
81 |
+12% |
659 |
|
Other operating (charges)/income (net) |
(7) |
12 |
(19) |
|
12 |
|
Operating profit (EBIT) |
728 |
666 |
62 |
+9% |
671 |
|
Net finance costs |
(320) |
(441) |
121 |
+27% |
(445) |
|
Other net financial income |
6 |
40 |
(34) |
41 |
|
|
Pre-tax profit |
414 |
265 |
149 |
267 |
|
|
Income tax |
(88) |
(15) |
(73) |
(15) |
|
|
Net consolidated profit for the year |
326 |
250 |
76 |
252 |
|
|
EBITDA / revenue |
53.5% |
55.1% |
-1.6pts |
|
55.2% |
|
* Restated at the rate of exchange used for the 2023 income statement (£1=€1.153). |
|||||
|
** Trading profit before depreciation charges. |
|||||
a) Eurotunnel segment
This segment includes the activities of the Eurotunnel sub-group companies, as well as those of the Group’s holding company Getlink SE and its other direct subsidiaries excluding Europorte and ElecLink. Eurotunnel, which represents the Group’s core business, operates and directly markets its Shuttle Services and also provides access, on payment of a toll, for the circulation of the Railway Companies’ High-Speed Passenger Trains (Eurostar) and Rail Freight Services through its Railway Network.
|
|
|
|
|
|
|
€ million |
|
|
Change |
|
|
Improvement/(deterioration) of result |
2023 |
* 2022 |
M€ |
% |
|
Exchange rate €/£ |
1.153 |
1.153 |
|
|
|
Shuttle Services |
726 |
726 |
– |
– |
|
Railway Network |
369 |
294 |
75 |
+26% |
|
Other revenue |
26 |
22 |
4 |
+18% |
|
Revenue |
1,121 |
1,042 |
79 |
+8% |
|
External operating costs |
(336) |
(268) |
(68) |
-25% |
|
Employee benefits expense |
(203) |
(186) |
(17) |
-9% |
|
Operating costs |
(539) |
(454) |
(85) |
-19% |
|
Current EBITDA |
582 |
588 |
(6) |
-1% |
|
EBITDA/revenue |
52% |
56% |
-4pts |
|
|
* Restated at the rate of exchange used for the 2023 income statement (£1=€1.153). |
||||
|
Object Omitted |
Object Omitted |
* Restated at the rate of exchange used for the 2023 income statement (£1=€1.153).
i. Eurotunnel revenue
Revenue generated by this segment, which in 2023 represented 61% of the Group’s total revenue, was up by 8% compared to 2022, to €1,121 million.
The following graphs illustrate the monthly evolution in traffic volumes in 2022 and 2023:
|
Object Omitted |
Object Omitted |
|||
|
Object Omitted |
Object Omitted |
Shuttle Services
At €726 million for 2023, Shuttle Services’ revenue was stable compared to the previous year, with growth in yields offsetting lower traffic in the Truck Shuttle activity.
|
|
|
|
|
|
Traffic (number of vehicles) |
2023 |
2022 |
Change |
|
Truck Shuttle |
1,206,754 |
1,446,765 |
-17% |
|
Passenger Shuttle: |
|
|
|
|
Cars * |
2,236,713 |
2,109,920 |
+6% |
|
Coaches |
18,130 |
17,518 |
+3% |
|
* Includes motorcycles, vehicles with trailers, caravans and motor homes. |
|||
Truck Shuttle
Compared to 2022, the Short Straits market for trucks contracted by 2.4% in 2023 due to the continuing effect of Brexit and the impact of the deterioration of the economic climate in the United Kingdom in a highly competitive market, and remains some 15% below 2019 levels. With 1,206,754 trucks carried, Eurotunnel’s traffic decreased by 17% compared to 2022. As a reminder, during the first half of 2022, Eurotunnel benefitted from a transfer of traffic linked to the interruption of P&O’s services for several weeks. In a Short Straits truck market that is currently in overcapacity, Eurotunnel’s Truck Shuttle service continues to be market leader with a market share of 36.0% in 2023 (42.2% in 2022).
Passenger Shuttle
In the first half of 2023 compared to the first half of 2022, growth in the Short Straits car market and Passenger Shuttle traffic was strong with the progressive lifting of travel restrictions during the period and a transfer of traffic to Eurotunnel due to the P&O service disruptions. This growth cooled in the second half of the year. For the full year 2023, in a Short Straits market that grew by 14% compared to 2022, the Passenger Shuttle Service is the marker leader with a market share of 58.4%, down by 4.4 points year-on-year but remains nevertheless 1.5 points above 2019 pre-pandemic levels.
In a Short Straits coach market that grew by 65.4% in 2023, Eurotunnel’s Passenger Shuttle’s coach traffic grew by 3% and its market share decreased by 14 points to 23.7% (2022: 37.8%).
Railway Network
|
|
|
|
|
|
Traffic |
2023 |
2022 |
Change |
|
High-Speed Passenger Trains (Eurostar) |
|
|
|
|
Passengers * |
10,716,419 |
8,295,005 |
29% |
|
Rail Freight Services **: |
|
|
|
|
Number of trains |
1,417 |
1,488 |
-5% |
|
* Only passengers travelling through the Channel Tunnel are included in this table, excluding those who travel between continental stations (such as Brussels-Calais, Brussels-Lille, Paris-Brussels, etc). |
|||
|
** Rail freight services by train operators (DB Cargo for BRB, SNCF and its subsidiaries, GB Railfreight, RailAdventure and Europorte) using the Tunnel. |
|||
The Group earned revenues of €369 million in 2023 from the use of its Railway Network by Eurostar’s High-Speed Passenger Trains and by Rail Freight Services, up by 26% compared to 2022 driven by the recovery in passenger traffic between the various countries served by Eurostar.
In 2023, 10,716,419 Eurostar passengers used the Tunnel, an increase of 29% compared to 2022 and reaching 97% of the levels seen in 2019 before the public health crisis. After a first quarter marked by social unrest linked to pension reform, passenger numbers rose almost to the same level as those in 2019. Traffic in the period benefitted from the additional daily direct services between London and Amsterdam and Rotterdam (a third daily direct services was added in April 2022 and a fourth was added in September 2022).
Having been impacted throughout the year by a series of strikes by national railways, cross-Channel rail freight traffic was down by 5% in 2023 compared to 2022.
ii. Eurotunnel operating costs
In 2023, the Eurotunnel segment’s operating charges increased by 19% compared to 2022 to €539 million. This increase of €85 million is mainly due to inflation. Energy costs in particular were impacted, increasing by €54 million which was partially offset by €14 million in energy certificates received in 2023 from EDF for the operation of the new Truck Shuttles and from the French government for the gas and electricity support scheme.
b) Europorte segment
The Europorte segment, which covers the entire rail freight transport logistics chain in France as well as cross-border flows to Belgium and Germany, includes most notably Europorte France and Socorail.
|
|
|
|
|
|
|
€ million |
|
|
Change |
|
|
Improvement/(deterioration) of result |
2023 |
2022 |
€M |
% |
|
Revenue |
150 |
137 |
13 |
+9% |
|
External operating costs |
(58) |
(52) |
(6) |
-12% |
|
Employee benefits expense |
(63) |
(56) |
(7) |
-13% |
|
Operating costs |
(121) |
(108) |
(13) |
-12% |
|
Current EBITDA |
29 |
29 |
– |
– |
In 2023, Europorte recorded an increase in revenue of €13 million (+9%) driven by continued growth in flows to Germany and Belgium, by an energy surcharge rebilled to customers, and by sustained infrastructure activity with in particular the Port of Sète contract starting up in June 2023. EBITDA in 2023 remained stable due to inflationary pressure on energy costs and the impact of strikes by SNCF-R traffic staff in the first half of the year.
c) ElecLink segment
ElecLink’s revenues come mainly from sales of interconnector capacity (see section 1.4 of the 2023 Universal Registration Document).
The interconnector entered commercial services on 25 May 2022 and was therefore only in commercial service for seven months in 2022.
In 2023, its first full year of operation, ElecLink generated revenues of €558 million and an EBITDA of €368 million. Its revenue was impacted in 2023 compared to 2022 by the reduction of spreads in the electricity market since December 2022.
|
|
|
|
|
|
€ million |
|
|
Variation |
|
Improvement/(deterioration) of result |
2023 |
2022 |
M€ |
|
Revenue |
558 |
420 |
138 |
|
Profit sharing |
(156) |
(142) |
(14) |
|
External operating costs |
(28) |
(11) |
(17) |
|
Employee benefits expense |
(6) |
(3) |
(3) |
|
Operating costs |
(190) |
(156) |
(34) |
|
Current EBITDA |
368 |
264 |
104 |
|
EBITDA / revenue |
66% |
60% |
+6 pts |
In 2023, ElecLink’s operating costs totalled €190 million, including a provision of €156 million in respect of the sharing of the interconnector’s profit with the French and British national electricity grid operators in accordance with the exemption granted to ElecLink in 2014 (see note D.8 in section 2.2.1 of the 2023 Universal Registration Document). The total provision, prepared in accordance with IAS 37, was adjusted in 2023 using updated underlying assumptions that take account of the normalisation of electricity market trends.
d) Current EBITDA
EBITDA by business segment evolved as follows:
|
|
|
|
|
|
|
€ million |
Eurotunnel |
Europorte |
ElecLink |
Total Group |
|
EBITDA 2022 restated * |
588 |
29 |
264 |
881 |
|
Improvement/(deterioration): |
|
|
|
|
|
Revenue |
+79 |
+13 |
+138 |
+230 |
|
Operating costs |
-85 |
-13 |
-34 |
-132 |
|
Total changes |
-6 |
– |
+104 |
+98 |
|
EBITDA 2023 |
582 |
29 |
368 |
979 |
|
* Restated at the rate of exchange used for the 2023 income statement (£1=€1.153). |
||||
Thanks to the full-year impact of ElecLink’s contribution, the Group’s consolidated EBITDA in 2023 increased by €98 million (11%) compared to 2022, to €979 million.
Contacts
Press contacts:
Anne-Sophie de Faucigny: +33 (0)6. 46.01.52.86
Isabelle Tourancheau: +33 (0)7.51.62.61.63
Analyst and investor contacts:
Virginie Rousseau: +33(0)6.77.41.03.39
