Getlink: 2022 Annual Results: Record Performance for the Group
Driven by the strategy of operational excellence and the successful start-up of ElecLink’s commercial operations
- Group
- Revenue of €1.606 billion (+107%1)
- EBITDA of €886 million (+198%), after provision of €142 million related to the future sharing of ElecLink’s profits
- Free Cash Flow2 of €714 million
- Cash at 31/12/2022 of €1.2 billion
- Consolidated net profit of €252 million
- Eurotunnel
- Revenue of €1.049 billion (+63%)
- EBITDA of €593 million (+120%)
- Europorte
- Revenue of €137 million (+5%)
- EBITDA of €29 million (+4%)
- ElecLink
- Revenue of €420 million
- EBITDA of €264 million, after provision of €142 million related to future profit sharing
PARIS–(BUSINESS WIRE)–Regulatory News:
Getlink (Paris:GET):
Yann Leriche, Getlink CEO, said: “In 2022, Getlink achieved a high-quality performance across all its entities, driven by the commitment of its teams, its strategy of operational excellence for customers, promising good prospects for 2023. Our low-carbon model and our capacity for innovation place us favourably at the heart of the societal and economic challenges of the years to come.”
- 2023 outlook
In 2023, Getlink will continue to strengthen its performance and operational discipline and will keep on innovating to sustain its value creation trajectory, despite contrasting market developments. The Group will also continue to invest in its environmental leadership through the deployment of the Oleo100 biofuel, the launch of on-site green electricity projects and the virtuous renovation of the first Passenger Shuttle.
- An EBITDA target of over €910 million3 (+€24 million compared to 2022), which takes into account in particular:
- the forward pricing for electricity as observed on 2 February 2023 and the same methodology as applied in 2022 in respect of the ElecLink profit-sharing mechanism;
- a cautious approach to the level of Eurotunnel’s business rates, which the Valuation Office Agency has stated it wants to multiply by almost 2.5, i.e. an additional charge of about €25 million per annum4.
- A capital expenditure budget of around €160 million for Eurotunnel to improve its operational performance and with a view to constantly reinforcing safety, enhancing its environmental leadership and strengthening its growth levers through:
- modernisation of the rolling stock,
- a campaign to renew the tracks in the Tunnel,
- further development of smart border services.
- Payment of a dividend of €0.50 per share, subject to approval at the AGM on 27 April 2023, significantly higher than the pre-pandemic level and in line with the Group’s desire to share value creation with its shareholders.
HIGHLIGHTS OF THE PAST YEAR
- Environment
- Alignment of 93% of the revenue of the Group’s activities with European Taxonomy (86% in 2021).
- Rating of the Group as a green asset with a positive impact: through the improvement of the CDP rating to A-, the integration into the Vérité 40 indices of Axylia and CAC SBT 1.5° and the increase in the rating of MSCI France index (AA).
- Reduction of greenhouse gas emissions by 4.5% in 2022 compared to 2021, on a like-for-like basis.
- Say on Climate vote at the 2022 AGM.
- Launch of the “Initiative for Effective Corporate Climate Action” research chair with the Toulouse School of Economics5 to explore and anticipate the impacts of the climate transition on businesses with one of the leading academic centres in this field.
- Publication of the Energy Efficiency Action Plan.
- Getlink’s commitment to the French EcoWatt system to reduce national consumption.
- Group
- Cash of €1.2 billion held at the end of December, reflecting the Group’s ability to continue generating Free Cash Flow.
- Active cost management limiting the effects of inflation.
- Optimisation of the financial structure with the refinancing of the C2A tranche of Eurotunnel’s debt.
- Appointment of Brune Poirson and Lord Ricketts to the Board of Directors.
- Strengthening of Eiffage’s shareholding as they became the Group’s largest shareholder with 18.79% of the shares through the purchase of TCI Fund Management’s stake.
- Eurotunnel
- Le Shuttle Freight
- Traffic up with nearly 1.45 million trucks transported (+6%) in a sluggish market, confirming its status as the cross-Channel market leader with 42.2% market share.
- Development of the services offered at Le Truck Village.
- Successful launch of the First offer, a new priority freight service.
- Acceleration of the “unaccompanied transport” activity with more than 4,000 trailers transported in 2022 (compared to 162 in 2021).
- Le Shuttle
- Confirmation of market leader status with 2.1 million passenger vehicles transported and a car market share of 62.8%.
- Value-creation marketing approach through anticipation and taking into account changes in customer preferences and behaviour.
- Success of the My Eurotunnel application downloaded more than 265,000 times.
- Eurostar
- Return of volumes with 8.3 million passengers.
- Launch of a fourth daily London – Amsterdam service.
- Rail freight trains
- In a difficult market, launch, with the CAT group, of a cross-Channel rail freight service on behalf of Toyota.
- Le Shuttle Freight
- Europorte
- Increase in Europorte’s annual revenue (+5%) to €137 million.
- Continuation of the profitable growth strategy with EBITDA of €29 million, up €1 million compared to 2021.
- First French rail freight company to invest in the ETCS signalling system and to equip its locomotives with this new technology.
- Obtaining ECM certification (European certification of entities in charge of maintenance) for locomotives and Wagon function 4.
- ElecLink
- ElecLink entered service on 25 May.
- Successful operational launch with a very high cable availability rate of 90% (vs 84% average IFA availability between 2011 and 2020).
FINANCIAL RESULTS
The Group’s consolidated revenue for the 2022 financial year totalled €1.606 billion.
Consolidated EBITDA totalled €886 million, multiplied by almost three compared to 2021 and driven by the excellent performance of all of the Group’s activities.
Trading profit amounted to €659 million, up by €551 million compared to 2021.
The Group’s consolidated net profit for the 2022 financial year amounted to €252 million after a loss of €229 million in 2021.
Cash at 31 December 2022 stood at a record level of €1.2 billion, an improvement of €478 million compared to 31 December 2021.
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About Getlink
Getlink SE (Euronext Paris: GET) is, through its subsidiary Eurotunnel, the concessionaire of the Channel Tunnel infrastructure until 2086 and operates Truck and Passenger Shuttle services (cars and coaches) between Folkestone (UK) and Calais (France). Since 31 December 2020 Eurotunnel has been developing the smart border so that the Tunnel remains the fastest, most reliable, easiest and most environmentally friendly way to cross the Channel. Since its inauguration in 1994, more than 481 million people and 99 million vehicles have travelled through the Channel Tunnel. This unique land link, which sees 25% of trade between the Continent and the United Kingdom, has become a vital link reinforced by the ElecLink electrical interconnector installed in the Tunnel, which helps to balance energy needs between France and the United Kingdom. Getlink complements its sustainable mobility services with its rail freight subsidiary Europorte. Committed to “low-carbon” services that control their impact on its environment (through its activities the Group avoids the equivalent of 2 million tonnes of CO2 per year), Getlink has placed at the heart of its concerns the place given to people, nature and places.
Next meetings in 2023:
20 April 2023: traffic and first quarter revenue for 2023
27 April 2023: Getlink SE Annual General Meeting
20 July 2023: 2023 half-year results
Additional information:
The Board of Directors, meeting on Wednesday 22 February 2023 under the chairmanship of Jacques Gounon, approved the accounts for the financial year ended 31 December 2022. A report with unqualified certification is being issued by the auditors.
The financial analysis of the consolidated financial statements is available on the Group’s website: www.getlinkgroup.com.
REVIEW OF THE CONSOLIDATED RESULTS AND FINANCIAL SITUATION FOR THE YEAR ENDED 31 DECEMBER 2022
The following information relating to Getlink SE’s financial situation and consolidated results must be read in conjunction with the consolidated financial statements set out in section 2.2.1 of the 2022 Universal Registration Document.
Accounting standards applied6 and presentation of the consolidated results
Pursuant to EC Regulation 297/2008 of 11 March 2008 on the application of international accounting standards, the consolidated financial statements of Getlink SE for the financial year ended 31 December 2022 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union at 31 December 2022.
Context of the preparation of the consolidated annual financial statements
The Group’s results in 2022 are significantly better than in 2021, driven by the recovery of the Eurotunnel business following the full lifting of Covid-19 border crossing and quarantine restrictions in the first half of 2022 and by the commercial launch of the ElecLink interconnector at the end of May 2022.
Eurotunnel’s operating margin (EBITDA) for 2022 is higher than in 2019 before the pandemic at equivalent exchange rates, despite traffic levels remaining lower, particularly for Passenger Shuttles and Eurostar, thanks to the Group’s effective application of its yield management strategy and the measures taken to adapt its operational capacity to changes in traffic demand and to control its costs.
On 25 May 2022, the Group’s subsidiary ElecLink started commercial operation of its 1 GW interconnector, transporting electricity between Great Britain and France. Against the backdrop of highly volatile electricity markets in 2022, ElecLink in its first seven months of operation has made a very significant contribution to the Group’s revenue and profitability growth for the year.
The global geopolitical context, particularly the conflict in Ukraine since February 2022 and China’s tough strategy to deal with the resurgence of Covid, has had a significant impact on the global economy, resulting in a sharp rise in inflation and energy costs, as well as delays and shortages in supply chains. To date, the most significant direct impact on the Group has been a significant increase in some of its costs, notably Eurotunnel’s and Europorte’s traction energy costs, and its financial charges on the inflation-linked tranches of Eurotunnel’s Term Loan. The general deterioration in the economic climate in the United Kingdom and Europe during the second half of 2022 and the impact of the energy crisis and very high inflation levels on purchasing power, have contributed to a weakening of the cross-Channel passenger and truck markets. In addition, the cross-Channel truck market and Eurotunnel’s Truck Shuttle traffic continue to be impacted by the consequences of Brexit on trade between Europe and the United Kingdom and on the fluidity of border crossings.
In 2022, the Group continued its strategy of prudent cash management and has maintained a high level of liquidity, with net cash available at 31 December 2022 of €1,196 million.
During the first half of 2022, the Group successfully refinanced the C2A tranche of the Eurotunnel Term Loan as part of the ongoing optimisation of its funding structure, thereby avoiding a significant increase in financial charges which would have taken effect in the second half of the year in accordance with the terms of the credit agreement.
1 ANALYSIS OF CONSOLIDATED INCOME STATEMENT
In order to enable a better comparison between the two years, the 2021 consolidated income statement presented in this section has been recalculated at the exchange rate used for the 2022 income statement of £1=€1.168.
Summary
Thanks to the recovery of Eurotunnel’s activity following the lifting of international traffic restrictions and the start-up of ElecLink during the first half of 2022, the Group’s consolidated revenue for the 2022 financial year amounted to €1,606 million, an increase of €832 million (107%) compared to 2021, of which €420 million was generated by ElecLink between 25 May and 31 December 2022 in the context of an exceptionally volatile energy market. Excluding the contribution of ElecLink, revenue for 2022 exceeded that of 2019 by €90 million. Operating costs of €720 million were up by €239 million (50%) compared to 2021 reflecting the start of ElecLink’s commercial operation as well as the upturn in Eurotunnel’s activity, higher energy costs and inflation. At €886 million for 2022, EBITDA improved by €589 million compared to 2021, of which €323 million related to Eurotunnel and €265 million to ElecLink. Group EBITDA in 2022 was €317 million above 2019, or on a like-for-like basis for Eurotunnel and Europorte, €53 million above 2019. At €659 million, the trading profit in 2022 was up by €551 million compared to 2021. After taking into account net financial expenses (including other financial income and charges) which were €106 million higher mainly due to the impact of the significantly increased inflation rates on the index-linked portion of the debt, the Group’s pre-tax result from continuing operations for 2022 was a profit of €267 million compared to a loss of €237 million in 2021, an improvement of €504 million.
After taking into account a net tax charge of €15 million, the Group’s net consolidated result for the 2022 financial year was a profit of €252 million, compared to the loss of €229 million in 2021, an improvement of €481 million.
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| € million | 2022 | 2021 | Change | 2021 | |
| Improvement/(deterioration) of result |
| restated* | €M | % | published |
| Exchange rate €/£ | 1.168 | 1.168 |
|
| 1.167 |
| Eurotunnel | 1,049 | 644 | 405 | +63 % | 644 |
| Europorte | 137 | 130 | 7 | +5 % | 130 |
| ElecLink | 420 | – | 420 | – | – |
| Revenue | 1,606 | 774 | 832 | +107 % | 774 |
| Other income | – | 4 | (4) | -100% | 4 |
| Total turnover | 1,606 | 778 | 828 | +106 % | 778 |
| Eurotunnel | (456) | (378) | (78) | -21% | (378) |
| Europorte | (108) | (102) | (6) | -6% | (102) |
| ElecLink | (156) | (1) | (155) |
| (1) |
| Operating costs | (720) | (481) | (239) | -50% | (481) |
| Operating margin (EBITDA) | 886 | 297 | 589 | +198 % | 297 |
| Depreciation | (227) | (189) | (38) | -20% | (189) |
| Trading profit | 659 | 108 | 551 | +510 % | 108 |
| Other operating income/(charges) (net) | 12 | (47) | 59 |
| (47) |
| Operating profit (EBIT) | 671 | 61 | 610 |
| 61 |
| Net finance costs | (445) | (308) | (137) | -44% | (308) |
| Other net financial income | 41 | 10 | 31 |
| 10 |
| Pre-tax profit/(loss) from continuing operations | 267 | (237) | 504 |
| (237) |
| Income tax (cost)/income | (15) | 8 | (23) |
| 8 |
| Net profit/(loss) from continuing operations | 252 | (229) | 481 |
| (229) |
| Net result from discontinued operations | – | – | – |
| – |
| Net consolidated profit/(loss) for the year | 252 | (229) | 481 |
| (229) |
| EBITDA (excluding other income) / revenue | 55.2% | 37.9% | 17pt |
| 37.9% |
| * | Restated at the rate of exchange used for the 2022 income statement (£1=€1.168). |
a) Eurotunnel segment
This segment includes the activities of the Eurotunnel sub-group companies, as well as those of the Group’s holding company, Getlink SE and its other direct subsidiaries excluding Europorte and ElecLink. Eurotunnel, which represents the Group’s core business, operates and directly markets its Shuttle Services and also provides access, on payment of a toll, for the circulation of the Railway Companies’ High-Speed Passenger Trains (Eurostar) and Rail Freight Services through its Railway Network.
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| € million |
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| Change | ||
| Improvement/(deterioration) of result | 2022 |
| * 2021 | M€ | % |
| Exchange rate €/£ | 1.168 |
| 1.168 |
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| Shuttle Services | 732 |
| 477 | 255 | +53 % |
| Railway Network | 295 |
| 155 | 140 | +90 % |
| Other revenue | 22 |
| 12 | 10 | +83 % |
| Revenue | 1,049 |
| 644 | 405 | +63 % |
| External operating costs | (269) | (193) | (76) | -39% | |
| Employee benefits expense | (187 | ) | (185) | (2) | -1% |
| Operating costs | (456 | ) | (378) | (78) | -21% |
| Operating margin (EBITDA) | 593 |
| 266 | 327 | +123 % |
| EBITDA (excluding other income)/revenue | 57 | % | 41% | 15pt |
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| Other income ** | – |
| 4 | (4) |
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| EBITDA Eurotunnel | 593 |
| 270 | 323 | +120 % |
| * | Restated at the rate of exchange used for the 2022 income statement (£1=€1.168). | |
| ** | Other income of €4 million received in 2021 relating to the 2019 financial year. |
The results of the Eurotunnel segment have recovered significantly in 2022 following two years of significant disruptions due to the health crisis and related measures since mid-March 2020, thanks to an effective application of the yield management strategy and the decisions taken by the Group to adapt its operational capacity to changes in traffic demand and to control its costs. Passenger Shuttle and Eurostar traffic however remained affected by the effects of the pandemic during the first half of 2022, albeit to a lesser extent than in 2021, and traffic levels generally were below 2019 levels in the second half of 2022.
The following graphs illustrate the evolution of the Eurotunnel segment’s revenue and EBITDA since 2019:
| Object Omitted | Object Omitted |
| * | Restated at the rate of exchange used for the 2022 income statement (£1=€1.168). |
i. Eurotunnel revenue
Revenue generated by this segment, which in 2022 represented 65% of the Group’s total revenue, was up by 63% compared to 2021, to €1,049 million.
The following graphs illustrate the monthly evolution in traffic volumes over the period January 2019 to December 2022:
| Object Omitted | Object Omitted | |||
| Object Omitted | Object Omitted |
Shuttle Services
Strong ticket yields, due mainly to the type of tickets booked (flexible, last-minute), have continued to mitigate the effect of the significant decline in cross-Channel passenger markets resulting from the pandemic. At €732 million for 2022, Shuttle Services’ revenue was up by 53% compared to the previous year.
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| Traffic (number of vehicles) | 2022 | 2021 | Change |
| Truck Shuttle | 1,446,765 | 1,361,529 | +6 % |
| Passenger Shuttle: |
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| Cars * | 2,109,920 | 953,143 | +121 % |
| Coaches | 17,518 | 7,062 | +148 % |
| * | Includes motorcycles, vehicles with trailers, caravans and motor homes. |
Truck Shuttle
Compared to the same period in 2021, Truck Shuttle traffic in the first half of 2022 benefited from a positive base effect due to the impact of the consequences of Brexit that occurred on 1 January 2021 as well as the interruption of P&O ferry traffic on 17 March until its gradual resumption from 26 April 2022 which disrupted the Short Straits market during this period. During the second half of 2022, the Short Straits truck market contracted as a result of the slowdown in economic activity related to the energy and inflation crisis. The number of trucks transported by Eurotunnel increased by 6% in 2022 compared to 2021, in a Short Straits truck market that contracted by 1.4%. The Truck Shuttle Service’s share of the market was at 42.2% for the year, an improvement of 3 points compared to 2021.
Passenger Shuttle
In the first half of 2022, the Short Straits market rebounded by 288% compared to the first half of 2021 as a result of the progressive lifting of travel restrictions and Eurotunnel’s car traffic, boosted by the transfer of P&O traffic during the period, increased by 248%. This growth slowed slightly in the second half of the year, to 160% for the full year 2022 compared to 2021 in a market weakened by the slowdown in economic activity, and the market remained 27% below 2019 pre-Covid levels. Having gained from safety benefits during the public health crisis, Eurotunnel’s car traffic market share at 63% has reduced by 11 points year-on-year but remains nevertheless above 2019 pre-Covid levels.
In a Short Straits coach market that grew by 319% in 2022, Eurotunnel’s Passenger Shuttle’s coach traffic grew by 148% and its market share decreased by 26 points to 37.8% (2021: 63.8%).
Railway Network
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| Traffic | 2022 | 2021 | Change |
| High-Speed Passenger Trains (Eurostar) |
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| Passengers * | 8,295,005 | 1,637,687 | 5.1x |
| Rail Freight Services **: |
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| Number of tonnes | 846,058 | 1,041,140 | -19 % |
| Number of trains | 1,488 | 1,654 | -10 % |
| * | Only passengers travelling through the Channel Tunnel are included in this table, excluding those who travel between continental stations (such as Brussels-Calais, Brussels-Lille, Brussels-Amsterdam, etc). | |
| ** | Rail freight services by train operators (DB Cargo for BRB, SNCF and its subsidiaries, GB Railfreight, RailAdventure and Europorte) using the Tunnel. |
The Group earned revenues of €295 million in 2022 from the use of its Railway Network by Eurostar’s High-Speed Passenger Trains and by Rail Freight Services, up by 90% compared to 2021 driven by the gradual recovery in passenger traffic between the various countries served by Eurostar.
In 2022, 8,295,005 Eurostar passengers used the Tunnel, 5 times that of 2021 and reaching 75% of the levels seen in 2019 before the public health crisis. The launch of a third (April) and fourth (September) daily direct return service between London and Amsterdam and Rotterdam also contributed to this increase.
Despite the development of a new service by the CAT group on behalf of Toyota, cross-Channel rail freight remains affected by the disruption to international supply chains and the changes in the structure of the steel sector, with the number of trains down by 10% in 2022 compared to 2021.
ii. Eurotunnel operating costs
In 2022, the Eurotunnel segment’s operating charges increased by 21% compared to 2021 to €456 million. This increase of €78 million is mainly due to the recovery in activity compared to 2021 as well as an increase of €25 million in energy costs, of which €20 million is due to increased energy prices.
| Object Omitted |
b) Europorte segment
The Europorte segment, which covers the entire rail freight transport logistics chain in France as well as cross-border flows to Belgium and Germany, includes most notably Europorte France and Socorail.
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| € million |
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| Change | |
| Improvement/(deterioration) of result | 2022 | 2021 | €M | % |
| Revenue | 137 | 130 | 7 | +5 % |
| External operating costs | (52) | (51) | (1) | -2% |
| Employee benefits expense | (56) | (51) | (5) | -10% |
| Operating costs | (108) | (102) | (6) | -6% |
| Operating margin (EBITDA) | 29 | 28 | 1 | +4 % |
In 2022, Europorte recorded an increase in revenue of €7 million (+5 %) and EBITDA of €1 million. Revenue growth was driven mainly by good sector positioning and continued growth in its transport business on cross-border flows between France, Belgium and Germany (which now account for 21% of Europorte’s total segment revenue), as well as by the re-invoicing of an energy surcharge to customers.
c) ElecLink segment
In 2022, the ElecLink project, which started in 2016, was completed, with the 1GW electricity interconnector between Great Britain and France becoming operational on 25 May 2022.
Between the start of commercial operations at the end of May 2022 and 31 December 2022, ElecLink generated revenues of €420 million and an EBITDA of €264 million.
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| € million |
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| Change |
| Improvement/(deterioration) of result | 2022 | 2021 | €M |
| Revenue | 420 | – | 420 |
| External operating costs* | (153) | – | (153) |
| Employee benefits expense | (3) | (1) | (2) |
| Operating costs | (156) | (1) | (155) |
| Operating margin (EBITDA) | 264 | (1) | 265 |
| EBITDA / revenue | 63% |
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| * | Including the estimated amount of the restitution of the sharing of the interconnector’s profit achieved in 2022 (see below). |
ElecLink’s revenues come mainly from sales of interconnector capacity.
ElecLink’s external operating costs include €142 million corresponding to an estimated amount of restitution of the sharing of the interconnector’s profit achieved in 2022 with the French and British national electricity grid operators in accordance with the exemption granted to ElecLink in 2014 (see section 6 below).
d) Operating margin (EBITDA)
EBITDA by business segment evolved as follows:
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| € million | Eurotunnel | Europorte | ElecLink | Total Group |
| EBITDA 2021 restated * | 270 | 28 | (1) | 297 |
| Improvement/(deterioration): |
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| Revenue | 405 | 7 | 420 | 832 |
| Other income | (4) | – | – | (4) |
| Operating costs | (78) | (6) | (155) | (239) |
| Total changes | 323 | 1 | 265 | 589 |
| EBITDA 2022 | 593 | 29 | 264 | 886 |
Contacts
Getlink:
For UK media enquiries contact
John Keefe on + 44 (0) 1303 284491
Email: [email protected]
For investor enquiries contact:
Michael Schuller on +44 (0) 1303 288749
Email: [email protected]
For other media enquiries contact
Anne-Sophie de Faucigny on +33 (0)6 4601 5286
Romain Dufour on +33(0)6 2000 3138
Virginie Rousseau on +33 (0)6 7741 0339
