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Investing.com -- Getlink SE stock climbed 1.6% on Tuesday after the company reported its full-year 2024 revenues, which, despite being down 12% year-on-year (YoY) at constant currency to €1,614 million, were approximately 1% above the Visible Alpha consensus of €1,600 million.
The slight increase in Eurotunnel revenues and a miss on Eleclink expectations marked the company's financial performance.
The Eurotunnel operator stated that Eurotunnel and Europorte revenues were slightly ahead of consensus expectations, with Eurotunnel revenues growing 5% YoY in the fourth quarter and 3% YoY to €1,166 million for the full year.
Shuttle revenues, however, saw a modest decrease of 1% to €727 million in FY2024. On the other hand, Eleclink revenues significantly underperformed, dropping 86% YoY in the fourth quarter and 50% to €280 million for the full year, falling short of consensus estimates.
Despite the revenue decline, Getlink did not update its EBITDA guidance for 2024, remaining confident in its ability to achieve the projected range of €780-€830 million. The Visible Alpha consensus forecasts an EBITDA of €807 million, with RBC's estimate slightly higher at €818 million.
The consensus forecasts have adjusted within the guidance range as Eleclink's return to service has been delayed.
Getlink's revenue growth in Europorte, which increased by 15% in the fourth quarter and 12% YoY to €168 million, was attributed to traction activity in France, Socorail's infrastructure segment, and a solid performance from recent acquisitions.
An RBC analyst commented on the company's outlook, stating, "We rate Getlink Sector Perform with a €15.50 price target. We expect 2025E, like 2024E, will be characterized by the continued normalization of electricity spreads after a bumper start for the Eleclink interconnector."
"We expect some benefit to Eurotunnel from a reduction in ferry overcapacity, and we agree with Getlink management that the outlook for freight volumes could improve under the current government in the UK. However, we do not expect the latter to be a 2025E story," the analyst added.
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