EuroBusiness Media (EBM): Groupe Eurotunnel SE reports 2016 first half-results. I have the pleasure of being with Jacques Gounon, welcome. You are the Chairman & CEO of Eurotunnel. In this first semester sales are up 2%, EBITDA is up 4% despite headwinds - the Brexit and terrorist attacks, obviously. Are you satisfied with the results of this first semester?
Jacques Gounon: Yes, very strong result for that half-year indeed, which is not a surprise because we have a very high quality of our offer, we want to deliver the best service to our clients. This is very well known. We are very well protected against migrants and asylum seekers. So all in all, on the Fixed Link, we can say that it is a very positive and dynamic half year with an incredible growth of our traffic including the yields. So, all in all, very strong, more than resilient, I would say performing result for this first half.
EBM: Now the Brexit is of course on everyone’s mind. What outlook for the future? What impact do you think this will have on your business?
Jacques Gounon: We have integrated in our strategy the Brexit outcome as a possible assumption for a long time and we are prepared for this situation. Having said that, I don’t think that there will be a very negative impact in the short term, because you know that negotiations will last at least two years. On top of that, I welcome the appointment of Theresa May as a Prime Minister because we know her very well. I’m quite sure that her Majesty’s government will do a very good job. We know that the Brits are very pragmatic so I know that for my own business - not for other issues but for my own business-, there will be no significant change. We are delivering just-in-time services and this is absolutely key for the British economy.
EBM: Speaking about your different businesses, Truck traffic grew double-digit, which is quite an amazing performance. What is your outlook for this business; how would you rate your ability to continue on this track?
Jacques Gounon; Definitively confident on such a very good track record. You know that this has been the most historical record that we have on the Truck-Shuttle business in the tunnel since the opening. So it’s absolutely incredible. 10% growth is absolutely key. And if we look at the passengers, for our Passenger Shuttle business we have increased our market share by 2 points in an environment which is quite difficult, that you have just reminded, with attacks and other very tough issues, so yes, we believe that we are very confident that we can continue on such trend.
EBM: Eurostar figures were down 3% and the volume of transported cars remain stable. What do you make of these numbers? Are passengers less willing to travel these days?
Jacques Gounon: As far as Eurostar is concerned, they are doing a very good job but it’s quite clear they have been impacted by the attacks, both in Belgium and in France which is an incredible pity, but I know that they want to react, and so the very slight, small loss of traffic is not significant and I do think that Eurostar will restart through the summer period with the new destinations, and of course in 2017 with the Amsterdam destination. So I’m fully confident. Car-Shuttle business, I think that yes we have to take care of that, but for instance throughout the Euro 2016 we have seen that when there are such kind of events we have all the Brits on board in order to go through the shuttle service. So all in all, no specific threat or fear on the Passenger business, including Eurostar.
EBM: Europort saw a 4% decrease in sales, a first in what has been a long-term growth story. Are there reasons for concern?
Jacques Gounon: Yes, of course, because the environment in Great Britain with less coal transportation is something which prevents us from continuing this organic growth, and in France unfortunately, we had to face a lot of strikes on the public railway network which is a pity. Having said that, we are not chasing volumes, we are chasing EBITDA so we are very pleased by the fact that EBITDA is stable.
EBM: And finally, you are working on a project of electrical interconnection called ElecLink. Could you give us an update on this project?
Jacques Gounon: ElecLink is an electrical interconnection between the UK and Europe and in these times of energy transition, both in France and Germany, we believe that there will be an additional need for electricity transportation between Great Britain and the Continent. So it’s a highly valuable asset and we were not in a position to have the full control of this business when we set up the ElecLink joint venture. Now we have the possibility to invest, so we are ready to take full control of this very good business, creating high value for our shareholders.
EBM: Jacques Gounon, Chairman & CEO of Eurotunnel, thank you very much.
Jacques Gounon: Thank you.
