Eutelsat Com Regulatory News (ETL)

18 Jul 2006 15:40

Eurotunnel PLC/Eurotunnel S.A.18 July 2006 18 July 2006Immediate release Results from Operations for the first half of 2006 Shuttle revenue continues to grow: +3% (to £152 million)Operating costs reduced by 9% (to £116 million)Operating margin significantly increased: +12% (to £161million) The radical reorientation of commercial and operating policy undertaken in 2005has had a very positive effect on Eurotunnel's operating results during thefirst six months of 2006. Revenue has continued to progress (£277 million, +2% compared to the first halfof 2005) supported by growth in Shuttle Services activity (+3%), the Group'score business. It should be noted that this increase in revenue is continuing,even though Eurotunnel benefited economically from the disruption to services atthe port of Calais during the first half of 2005. The growth is also notable at a time when Eurotunnel no longer pursues trafficvolumes: with the number of vehicles carried on Eurotunnel Shuttles stable ordiminishing by comparison to 2004 (see annex 2), the increase in revenuedemonstrates that the optimisation of load factors, the introduction of adynamic pricing model (for Passenger) and the re-establishment of direct controlover the sales and marketing of our Truck Service, needed to be put in place. The other notable success is the significant reduction in operating costs seenduring the first half of 2006: costs are down by 9%, to £116 million. Theincrease in revenue and the reduction in costs combine to give a verysatisfactory growth in the operating margin (+12%), which has risen to £161million. The profitability of our activities, calculated by the relationship of theoperating margin to revenue, reached a record level of 58% during the period. For the second half of 2006, Eurotunnel would like to point out that thesituation created by the refusal of certain creditors to approve the proposedfinancial restructuring and, by consequence, the request for the safeguardprocedure in France could have a negative impact on customer reservations orsupplier demands which is difficult to predict. Jacques Gounon, Chairman and Chief Executive of Eurotunnel said, "Eurotunnel'soperating results for the first half of this year are very good. This markedimprovement is the tangible result of the considerable efforts made by the staffand shows the potential Eurotunnel has. It would be an injustice if these efforts were reduced to nothing by the refusalof creditors to reach a rapid solution to the question of the debt". Note to editors: we remind you that Eurotunnel's annual accounts at 31 December2005 are the object of a warning procedure (Procedure d'alerte) initiated by theFrench auditors on 12 February 2006 and that they have not been approved. Annex 1. Operating results (in £ millions)* Exchange rate •/£ 1st half 2006 1st half 2005** 2006/2005 (estimated, un-audited)* (restated(1)) (% change) 1.441 1.441Shuttle Services 152 148 +3%Railways ***120 118 +2%Transport activities 272 266 +2%Non-transport activities 5 5 -Revenue 277 271 +2%Operating expenses (116) (127) -9%Operating margin 161 144 +12% Operating margin / Revenue 58% 53% +5pts * estimated, un-audited figures. ** the figures from the first half of 2005 have been recalculated at anexchange rate of £1=€1.441, in order to allow direct comparison with the figuresfor the first half of 2006. For the same reason, they have also beenrecalculated in accordance with the IFRS accounting standard, as adopted byEurotunnel on 31 December 2005. *** of which £37 million from the Minimum Usage Charge clause in the contractlinking Eurotunnel to the railways, which guarantees a minimum level of tolls,independent of variations in traffic levels. This arrangement expires at the endof November 2006. Annex 2. Shuttle Services and Railways traffic 1st half 1st half 2006/2005 1st half 2006/2004 2006 2005 (%change) 2004 (%change) Freight Shuttles 649,596 703,363 -8% 646,468 0%Passenger Shuttles 887,464 951,561 -7% 944,832 - 6% • cars**** 33,030 39,831 -17% 29 834 +11% • coaches Eurostar***** 3,733,403 3,675,508 +2% 3,406,698 + 10% (passengers)Freight Trains SNCF/EWS 79, 672 847,716 -7% 978,717 - 19%(in tonnes) **** including, motorcycles, vehicles with trailers, caravans, and camper vans ***** the number of Eurostar passengers in this table includes only thosetravelling through the Channel Tunnel, and therefore excludes passengerstravelling between Paris-Calais and Brussels-Lille No 987/2006 For media enquiries contact John Keefe on + 44 (0) 1303 284491. Email: John.keefe@eurotunnel.com For investor enquiries contact Xavier Clement on + 33 1 55 27 36 27. Email: xavier.clement@eurotunnel.com www.eurotunnel.com Eurotunnel manages the infrastructure of the Channel Tunnel and operatesaccompanied truck shuttle and passenger shuttle (car and coach) services betweenFolkestone, UK and Calais, France. Eurotunnel also earns toll revenue fromtrain operators (Eurostar for rail passengers, and EWS and SNCF for railfreight) which use the Tunnel. Eurotunnel is quoted in London, Paris andBrussels. -------------------------- This information is provided by RNS The company news service from the London Stock Exchange