Eurotunnel today revealed an improvement in its losses, and said it will gain in the long-term from the end of duty free sales.
The company lobbied for abolition because it felt it benefited rival ferry operators. Now people would compare the tunnel with the ferries purely on a transport basis, said Charles Mackay, group deputy chairman.
In response, it struck a low-cost supply agreements with BAA, which took over its retail operations at the beginning of the month.
However, the end of duty free would have an impact on full year figures and the strong growth seen in the first half of the year could not be projected forward to predict the annual results.
Turnover jumped 16% to £327m from £283m in the six months to June 30. Retail and other related revenues increased 18% to £95m. Underlying losses were £64m, against £130m for the same period the previous year.
The company outperformed ferry operators in the short Channel crossing market for cars, seeing its traffic grow 6% to 1.6m cars against the market average jump of 4%. Coach traffic fell 4% while lorry traffic increased by 12%.
The company also leases the tunnel to Eurostar for continental passenger traffic and to a number of freight train operators. Eurostar passenger numbers improved marginally, while rail freight tonnage fell 16%.
EGi News 20/07/99
Do you have a comment about this story? Send a note to the editor.
