Getlink: Conference Call Feedback

Research evidence excerpt

Getlink: Conference Call Feedback

etails:

outcome of EES implementation. The second consideration is the availability

of the Eleclink asset in H2, around which there is always a slight uncertainty. Sam Edmunds - Specialist Sales - European Industrials

The final variable relates to how long the market share improvement in freight (44-20) 7742-8733

shuttles is maintained. The range assumes that the higher maintenance Opex sam.edmunds@jpmorgan.com

seen in H1 continues in H2. Ian Mitchell - Specialist Sales -

• EES. Getlink stressed that, as a result of its investment in preparedness for EES European(44-20) 7134-1356Energy

implementation, it is not facing issues with the implementation of the system ian.e.mitchell@jpmorgan.com

in the manner of other operators and sees a competitive advantage relative to

other cross-channel routes as a result. Getlink’s guidance range assumes

limited disruption related to the implementation of EES. Biometric controls are

scheduled to be implemented from 6 September, but management sees a

likelihood this will have to be delayed, given issues with the readiness of the

necessary technology.

• Shuttle Traffic. EES was not supportive in H1 and clearly had an impact on

passenger volumes, although Getlink’s competitors saw greater traffic

declines. The UK press is highly negative about EES as a result of issues at

airports and the Port of Dover, and management’s concern is that while the

shuttles are not facing these issues the reporting will affect the appetite for

travel to the EU. Overall, however, an increase in market share is expected as

a result of EES implementation given the greater challenges the ferries are

expected to face.

• Shuttle Yields. Getlink will deploy new pricing tools by year-end and expects