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Last Updated: Monday, 21 July, 2003, 06:56 GMT 07:56 UK
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.

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