Getlink's core profits drop, dragged down by Eleclink

(Reuters) -Transport and infrastructure operator Getlink reported a drop in its half-year core profit as growth in its Eurotunnel and Europorte activities was outweighed by a fall in Eleclink's contribution.

WHY IT'S IMPORTANT

Eleclink's first-half sales fell more than 50% to 92 million euros ($108 million) compared to 185 million euros in the first half of 2024, due to the combined effects of the expected normalisation of electricity markets and business suspensions.

Overall, Getlink continued to benefit from operational resilience despite the shutdowns of Eleclink's activities, as Eurostar's traffic grew 4% to more than 5.6 million passengers, exceeding the record level of 2024's first half.

However, its freight segment suffered due to a lacklustre economic environment in Britain and a highly competitive cross-Channel market, with a slight drop of 2% in traffic.

The company's net profit was down 35% to 113 million euros.

CONTEXT

In addition to a normalisation of the electricity markets, Getlink has been impacted by the suspension of Eleclink's electrical interconnector between France and Britain between September 25 and February 10 due to a damaged cable, as well as a disruption for maintenance between May 19 and June 2.

QUOTE

Yann Leriche, CEO: "Our results are, as expected, down, and this is largely due to the fall in spreads, the normalisation of the energy and electricity markets in particular. And it's also due to two interruptions we had to make to the cable."

($1 = 0.8497 euros)

(Reporting Johan Bodinier in Gdansk; Editing by Lincoln Feast.)