Getlink, operator of the Channel Tunnel, has reported a 23% drop in sales in the first quarter of 2024, mainly due to the fall in electricity prices that affected ElecLink, the power link between France and England.
Impact on ElecLink
ElecLink, which had benefited from exceptional market conditions in the previous year, saw its sales fall by 54% to 107 million euros in the first quarter of 2024. This reduction is attributed to the normalization of electricity prices after a particularly favorable year.
Stable Eurotunnel activity
Eurotunnel’s core business, vehicle and passenger transport, remained stable, with sales of 244 million euros. However, car transport was down slightly by 2%, partly due to increased competition from ferries, which, according to Getlink, practice “social dumping”.
Legal measures against social dumping
Getlink is preparing for the implementation of a new law in July that will target social dumping on cross-Channel routes, forcing ferry companies to comply with French labor laws, including minimum wages and limits on seafarers’ working hours. This measure aims to reduce the competitive advantage of operators using practices deemed unfair.
Performance of other segments
Truck traffic through the tunnel fell by 6%, reflecting a stagnant market. By contrast, Eurostar saw a 9% increase in passenger numbers, with 2.4 million travelers in the first quarter, helping to keep sales in this business stable. Rail freight subsidiary Europorte posted sales of €40 million, up 14% on the previous year.
Despite the challenges of the first quarter, Getlink is maintaining its financial targets for 2024, with a projected EBITDA of between 780 and 830 million euros.
