News

Channel Tunnel operator Eurotunnel enjoyed a rare piece of good news last week, when it announced a large drop in half-year losses. Net losses for the six months to the end of June were €32m (£21m), compared with €105m (£71m) in the same period last year. One of the reasons for the smaller loss was that Eurotunnel was allowed to pay less interest on its debt as a result of a ruling from the Paris Commercial Court. Eurotunnel spent €181m (£122m) servicing its debt in the first six months of 2007,  compared with €245m (£170m) in 2006.

The company has struggled with the huge debts incurred by the building of the tunnel ever since it opened in 1994. A continuing cut in the interest rate on the debt was secured as part of a restructuring deal agreed at the end of June and the company is optimistic that its full year results could improve even further. Eurotunnel's shuttle service saw a 9% increase in truck numbers in the first half of 2007 compared to last year.

Jacques Gounon, chief executive and chairman, says the company's performance was even more gratifying because of the ending of the Minimum Usage Charge (MUC) paid by the railway companies that use the tunnel. Gounon says: "To fully appreciate our performance it is important to take into account the loss of the MUC, which represented, in the first half of 2006, 14% of total revenue. All other things being equal, our revenue has increased by 7%."