The Channel Tunnel Group, Getlink, says Brexit becomes very likely

PARIS (Reuters) – Channel Tunnel Operator, Getlink (GETP.PAPublished on Tuesday lower operating profits in the first half of the year and said the scenario that Britain would leave the EU without divorce on October 31 was becoming "very likely".

Getlink, formerly known as Eurotunnel, said its key reference scenario was now the "no-deal", and that it therefore provided that earnings before interest, taxes, depreciation and amortization (EBITDA) for 2019 is expected to fall to 560 million euros (503 million pounds). of 569 million in 2018.

"Our scenario is clearly the no-deal but we can deal with it. We remain confident in the ability to manage the next steps of Brexit and confirm the dividend growth policy, "said Jacques Gounon, CEO of Getlink, during a conference call.

"We are cautious but not worried. Economic activity will continue to grow, "he said, adding that Getlink's activities responded to" vital needs ".

S & # 39; APPLYING TO ITS FINANCIAL TARGETS FOR 2022

The stakes are high.

In 2018, the group transported 21 million pbadengers, 17 million trucks, 2.7 million cars and 26% of trade between Britain and the European Union, generating thousands of jobs . It is feared that a hard Brexit will slow down business.

Its EBITDA in the first half decreased by 2% to 255 million euros due to the slowdown of the cross-Channel markets in the second quarter of 2019 and the negative impact of the French customs strike from 4 March to 15 May.

Revenues, however, increased by 2% to 523 million euros.

In the longer term, Getlink remained confident in the resilience of its business and maintained its EBITDA target of exceeding 735 million euros by 2022 and increasing its dividend by 0.05 euros per share. here 2022.

Getlink transports Eurostar high-speed trains between Paris, Brussels and London, as well as shuttle trains containing pbadenger cars, coaches and freight trucks.

In the cross-Channel automotive markets, the hesitation of some customers with regard to the effects of Brexit has slightly affected the profile of bookings, but Getlink remained confident in its traffic goals for the period summer peak.