Eurotunnel warns on revenues

Eurotunnel, the firm which operates the Channel Tunnel, has warned its revenues this year may not be enough to cover interest repayments.

The group blamed a fall in passenger numbers following stiff competition for the shortfall.

Its revenues fell 7% in the first six months of the year, from £292m a year ago to £272m.

Underlying losses at the firm also widened by 2% to £79m.

"Our first half results reflect the current depressed demand and consequent pricing pressures which are affecting the travel and freight transport sectors as a whole," said chairman Charles Mackay.

Bleak outlook

Eurotunnel said it had managed to reduce its debt in the past six months by £90m.

But it warned that the current weak demand would continue in the next six months.

Passenger numbers fell to 2.8million from 3.2million a year ago.

"These challenging market conditions now look set to continue in the second half.

"As a result of the continuation of these difficult market conditions, we are now unlikely to achieve the full year revenues needed to cover our interest charges from cashflow," warned Mr Mackay.