Eurotunnel sales drop by four percent

PARIS, Jan 25 (AFP) – Eurotunnel, which operates rail service linking France and Britain beneath the Channel, said Tuesday its 2004 sales fell four percent to EUR 789 million (USD 1.28 billion) from 2003.

Re-calculated sales in 2003 came to EUR 821 million.

The number of passengers carried through the tunnel by the Eurostar train rose 15 percent to 7,276,675 while rail freight tonnage increased eight to 1,889,175 tonnes, the company said.

Eurotunnel chief executive Jean-Louis Raymond said: “The cross-Channel market has remained difficult for all operators, as it has for Eurotunnel.

“The improvement in Eurostar traffic over the last year has certainly been encouraging, but competitive pressure remains strong and the impact on the market of the development of ‘no-frills’ airlines is being felt ever more strongly.

“This is why a new commercial strategy has been in place in the truck business since January 1. The new passenger strategy will be launched in time for the summer.”

Eurotunnel is in talks with its creditors about the repayment schedule for its EUR 9.5 billion debt.

Eurotunnel shares following the sales report fell four percent to EUR 0.24 in early trading here on an overall market that was up 0.10 percent at 3,852.43.

Subject: French News