Sterling Slide Pounds Eurotunnel Earnings Outlook

Sterling slide pounds Eurotunnel earnings outlook

PARIS,(Pakistan Point News - 20th july,2016)- Eurotunnel, which manages the rail link under the Channel, lowered Wednesday its earnings targets due the fall in the value of the pound but said that Brexit would not harm long-term growth. Sales fell 10.3 percent to 581.8 million euros ($639.2 million), although three-quarters of this was due to the shutting down of its ferry service MyFerryLink, the company said. The rest was attributable to the value of the pound, which had already slid before the vote by Britain to leave the European Union in June, after which it collapsed to a 31-year low against the dollar before recovering slightly.

But Eurotunnel said its analysts "have concluded that the potential impact of this decision is not likely to affect the long term sustainable growth of the Channel Tunnel's activity..." "During the 22 years that the Tunnel has been in operation, sterling has experienced significant fluctuations against the euro without hindering the general trend of traffic growth," it added.