Thalys gets 120 million financing from European banks
Thalys receives financing from five European banks for a total amount of 120 million euros, the operator announced on Tuesday. The financing has a term of four years. The international operator is relying on external financing for the first time since its establishment.
Just like other international operators, Thalys has had difficult times with a revenue decline of -70 percent in 2020 and a net profit of -137.7 million euros in the same year. The operator has a negative EBITDA of – 78.5 million euros, this represents the company’s profit after subtracting operating expenses and the costs of running the daily business. Following news about a financing package for Eurostar earlier this month, the Thalys board of directors now approved financing from five European banks.
“We are pleased with the completion of this transaction. It secures the future of Thalys at a time when travel restrictions are lifted and our activities gradually resume”, said Bertrand Gosselin, Thalys CEO. “This funding is fully integrated into the Thalys recovery plan that is being continued. With the completion of this transaction, Thalys can focus on its commercial recovery and resumption of growth”.
Merger with Eurostar
The French SNCF, the largest shareholder of both Thalys and Eurostar, announced a merger at the end of 2019. The corona crisis has put those plan on hold, it is unclear when the merger takes place. Gosselin stated earlier that both carriers must first get their financing in order. Eurostar has also been hit hard by the corona crisis, and received a 291 million euro financing earlier this month the merger was postponed. Perhaps that with the two operators getting financial funding, the merger is back on the agenda.