Getlink SE: history, ownership, mission, how it works & makes money

A Brief History of Getlink SE

Getlink SE, formerly known as Eurotunnel, was established in 1986 to manage the Channel Tunnel, which connects the United Kingdom and France beneath the English Channel. The company was first listed on the Paris Stock Exchange in 2007, reflecting its ongoing commitment to transparency and investor access.

In 1994, the Channel Tunnel officially opened, significantly enhancing cross-border transport between the two nations, and making Getlink a key player in the rail and transportation sector. The initial investment for the construction of the tunnel was around €15 billion.

Getlink operates through several subsidiaries, including Eurostar International Limited, which provides high-speed rail services, and Le Shuttle, which transports vehicles through the tunnel. As of 2023, Eurostar operates trains with a capacity of about 900 passengers and has transported over 30 million travelers since its inception.

Financially, Getlink has shown resilience and growth. In 2019, the company reported revenues of approximately €1.33 billion, with a net profit of around €195 million. The COVID-19 pandemic significantly impacted operations in 2020, leading to a decline in revenue to approximately €725 million, alongside a net loss of about €96 million.

In 2021, Getlink rebounded with revenues of about €1.08 billion, and by 2022, the company reported revenues of approximately €1.5 billion, indicating a strong recovery trajectory.

As of June 2023, Getlink reported a net debt of approximately €6 billion, reflecting ongoing investments in infrastructure and services. The company continues to focus on sustainability, with plans to further reduce carbon emissions by 40% by 2030.

Getlink's stock performance has been notable, especially in the wake of the pandemic recovery. In October 2023, Getlink's share price is around €17.50, up from a low of €10.20 in early 2020. The company has a market capitalization exceeding €4.2 billion.

The push towards digital transformation and improved customer experience is evident in Getlink's recent investments in technology, aiming to enhance operational efficiency and passenger convenience. The company is increasingly focusing on partnerships and collaborations to expand its services, including freight transport, signaling its ambition to be a leader in the multi-modal transport landscape.

A Who Owns Getlink SE

Getlink SE, formerly known as Eurotunnel, is a publicly traded company listed on the Euronext Paris under the ticker symbol GET. The ownership structure of Getlink SE involves a mix of institutional and private investors, with varying degrees of influence over the company's operations.

Major Shareholders

As of the latest financial reports, the ownership of Getlink SE is characterized by a few significant stakeholders:

The top two shareholders, CDPQ and the French Government, together control a significant portion of the company, amounting to approximately 57.8% of total shares. This concentration of ownership grants them substantial influence over strategic decisions.

Institutional Investor Trends

Institutional investors have shown a growing interest in Getlink SE as reflected in the trading volumes and share movements over recent years. In 2022, Getlink SE reported an average daily trading volume of approximately 1.1 million shares, indicating robust investor activity.

Stock Performance

The stock price of Getlink SE has experienced fluctuations largely influenced by broader economic conditions and specific operational performance. The closing price on October 13, 2023, was €12.60, reflecting a year-to-date increase of 15%. This performance is driven by the recovery of cross-Channel passenger traffic post-pandemic.

Shareholder Dynamics

Getlink SE has a dynamic shareholder base that can impact decision-making processes such as board appointments and major strategic initiatives. The company holds annual general meetings where shareholders can express their votes on key issues, yielding an overall voting power concentrated in the hands of significant stakeholders.

Furthermore, the company's strategy for growth through infrastructure investment continues to attract attention from both institutional investors and market analysts, further solidifying its position in the transportation sector.

Getlink SE Mission Statement

Getlink SE, the operator of the Channel Tunnel, aims to be a leader in sustainable and efficient transportation across Europe. The company operates under its mission to provide a reliable, high-quality service for passengers and freight, fostering economic growth and connectivity. This mission not only reflects its commitment to customer service but underscores its focus on integrating sustainability in its operations.

The mission statement emphasizes three core principles: safety, sustainability, and efficiency. Getlink SE is dedicated to ensuring safety across all levels of its operations. According to their 2022 Annual Report, the company achieved a **99.9%** safety performance rate, reflecting its rigorous safety protocols.

In terms of sustainability, Getlink has set ambitious goals. The company aims to reduce its carbon emissions by **25%** by 2025, relative to 2016 levels. As of 2023, they reported a reduction of **17%**, demonstrating progress in its commitment to green transportation.

Getlink's service efficiency is highlighted by its punctuality rates, which stood at **90.2%** for Eurotunnel Le Shuttle in the fiscal year 2022. This performance metric underscores the company’s dedication to providing a seamless travel experience for passengers.

Financially, Getlink recorded a revenue of **€1.4 billion** in 2022, a **10%** increase compared to the previous year, driven by a significant uptick in passenger numbers and freight transport. The revenue from the Eurotunnel segment specifically accounted for about **70%** of total revenue, highlighting its vital role in the company’s overall performance.

Additionally, Getlink's net profit margin for the fiscal year 2022 was approximately **12.2%**, which is reflective of its operational efficiency and effective cost management strategies.

Getlink's commitment to fostering innovation and improving customer experience is also evident in its investment in digital infrastructure. As of 2023, the company allocated around **€70 million** toward developing advanced ticketing systems and enhancing customer service platforms.

Ultimately, Getlink SE continues to evolve its mission statement to align with changing market dynamics and environmental expectations, ensuring that it remains at the forefront of the transportation sector in Europe.

How Getlink SE Works

Getlink SE, formerly known as Eurotunnel, operates the Channel Tunnel, which connects the UK and continental Europe. The company primarily generates revenue from its transport services, which include Le Shuttle (vehicle transport) and Eurostar (passenger transport). In FY 2022, Getlink reported a revenue of €1.238 billion, an increase of 12% compared to €1.104 billion in FY 2021.

Getlink's transportation business is segmented into two main divisions: Infrastructure and Transportation. As of December 31, 2022, the revenue breakdown was as follows:

Getlink primarily relies on the toll fees charged to Eurostar and Le Shuttle services. In 2022, traffic through the Eurotunnel reached approximately 2.6 million passengers, alongside around 1.5 million vehicles transported via Le Shuttle.

Operationally, Getlink emphasizes sustainability and innovation. The company has pledged to reduce its carbon emissions by 30% by 2030 compared to 1990 levels. The initiative includes investments in energy efficiency and green technologies. For instance, Getlink has invested over €100 million in electric and hybrid train technology.

Financially, Getlink reported an EBITDA of €668 million for FY 2022, reflecting a margin of approximately 54%, indicating strong operational efficiency. Net profit for the same period stood at €265 million, up from €230 million in 2021.

As of October 2023, Getlink’s shares are listed on the Euronext Paris under the ticker GET. The company's stock performance has shown resilience, with a current share price of approximately €16.50, which represents a year-to-date increase of around 18%.

Getlink's strategic focus on expanding its operations to other transport routes and increasing its market share is supported by alliances and partnerships. The company has entered into collaborations with various logistics firms to enhance freight services across Europe, contributing to its ongoing growth. In 2022, freight traffic saw a 9% increase, underscoring the growing demand for cross-Channel transport.

How Getlink SE Makes Money

Getlink SE, formerly known as Eurotunnel, generates revenue primarily through its diverse infrastructure and transportation services. The company operates the Channel Tunnel, which connects the UK and France, and offers various transportation solutions including passenger and freight services.

In 2022, Getlink reported total revenues of €1.55 billion, marking an increase of 8% compared to 2021. This growth can be attributed to a recovery in passenger traffic post-COVID-19 and increased freight volumes.

Revenue Segments

The revenue streams for Getlink can be broken down into several main categories:

• Eurotunnel Le Shuttle Passenger: This segment includes transportation services for vehicles and passengers through the Channel Tunnel.
• Eurotunnel Le Shuttle Freight: Focused on the transportation of freight via the tunnel.
• Eurostar: High-speed passenger train services connecting London with various European cities.
• Telecoms and other activities: Income derived from telecommunications services and related initiatives.

Financial Performance by Segment

The Eurotunnel Le Shuttle Passenger segment remains a key driver of revenue, with 496 million euros earned in 2022. This is followed closely by the Eurotunnel Le Shuttle Freight segment, which brought in 470 million euros.

Passenger and Freight Traffic

The recovery of passenger traffic has been notable. In 2022, Eurotunnel transported approximately 1.5 million vehicles and 3.6 million passengers. In contrast, freight traffic showed resilience, with around 158,000 trucks transported through the tunnel during the same period.

Cost Structure

Getlink’s cost structure primarily consists of maintenance costs for the tunnel and rolling stock, employee salaries, and operational expenditures. In 2022, total operating expenses rose to €1.29 billion, reflecting the increased operational activities as traffic levels returned to pre-pandemic norms.

The company also invests in sustainability initiatives, aiming to reduce its environmental impact and enhance operational efficiency. This includes investments in renewable energy and innovative technologies, which will potentially reduce future costs associated with energy consumption.

Market Trends and Outlook

Looking ahead, the transportation sector is evolving. Getlink is positioned to benefit from the ongoing recovery in travel demand and increasing freight transportation needs across Europe. With the growth of e-commerce and trade, the freight segment is likely to see consistent demand, while passenger services will gradually return to pre-pandemic levels.

Getlink is well-positioned to capitalize on these trends, leveraging its extensive network and strong brand recognition. The company’s strategic focus on enhancing customer experience and operational efficiencies will support its revenue growth in the coming years.