Stocks

Headlines

Getlink SE Reports Decline in Profit and Revenue for 2024

Getlink SE announces a cautious outlook with a decline in profits. The company faces economic uncertainty affecting its revenue streams.

Date: 
AI Rating:   5

Profit and Revenue Decline: Getlink SE has reported a decline in both profit and revenue for fiscal 2024. The consolidated net profit fell by 5% to 317 million euros, a drop from the previous year's profit of 332 million euros. Moreover, consolidated revenue decreased by 12%, amounting to 1.61 billion euros compared to 1.84 billion euros last year.

Revenue Factors: This decline in revenue is attributed to the normalization of electricity markets and the suspension of ElecLink's contribution in the last quarter. Despite the overall decline, Eurotunnel and Europorte reported increases in revenues of 3% and 12%, respectively, indicating potential areas of growth within the company.

EBITDA Overview: For fiscal 2024, the consolidated EBITDA also dropped by 16%, from 990 million euros to 833 million euros, influenced negatively by the lower contribution from ElecLink. However, Eurotunnel saw an 8% increase in its EBITDA, which suggests that not all segments of the business are performing poorly.

Future Projections: Looking ahead to fiscal 2025, Getlink projects a consolidated EBITDA between 780 million euros and 830 million euros. This forecast reflects ongoing economic uncertainty in Europe and the competitive environment posed by ferry operators, which may lead to cautious investor sentiment.

Dividend Announcement: On a positive note, the company has proposed a dividend payment of 0.58 euros per share, rising 5.5% from the previous year, subject to shareholder approval. This indicates a commitment to shareholder returns despite current challenges.

Capital Expenditure Plans: Getlink plans to gradually increase capital expenditures to a range of 170 million euros to 220 million euros over the next several years, indicating a long-term investment strategy that could improve operational efficiency and service offerings.

Stocks:  GRPTY