Eurotunnel, the Channel Tunnel operator, today posted a 9 per cent drop in first-quarter revenues but said sales rose 10 per cent for its core shuttle business.

Overall, revenues came in at £118.5 million, down from £129 million a year earlier as the dropping of the minimum user charge (MUC) formerly imposed on railway companies hit the figures.

Revenues from shuttle services, where Eurotunnel transports trucks and passenger vehicles on board its own rolling stock, rose to £76 million, from £67 million a year earlier.

The number of trucks and cars transported on Eurotunnel Shuttles increased 11 per cent, to about 760,000.

The MUC, which had been agreed with both Eurostar, the train operator, and freight companies, ran out in November. It had brought in £21 million in the first quarter of 2006.

Stripping out the effect of the MUC, revenues from railway companies were £40.9 million, up 6 per cent compared with the same period a year earlier.

The figures showing a continuing recovery in Eurotunnel's underlying profitability will bolster chairman Jacques Gounon who is attempting to persuade shareholders to back a rescue plan with creditors that will cut debts from £6 billion to £2.8 billion but hand equity to banks and hedge funds.

Shareholders have until May 15 to vote on the plan. Many have been angered by part of his plan to scrap free travel for investors.

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