THE ending of guaranteed income from railway companies has dented Eurotunnel revenue by nine per cent.

But the Channel Tunnel operator claimed that losses would have been higher had it not already compensated for much of the expected shortfall.

Under the Minimum Usage Charge (MUC), Eurotunnel received income from Eurostar and freight railway companies irrespective of the number of passengers or amount of freight carried.

But from last November, when the MUC was scrapped, Eurotunnel depended on revenue according to actual usage.

The number of passengers travelling on Eurostar trains was 1,792,649 during the first quarter of 2007, almost 100,000 more than during the same period in 2006, representing an increase of six per cent.

Freight trains carried 365,642 tonnes, down seven per cent, and well below the original forecast levels and the capacity of the Channel Tunnel.

Overall, Eurotunnel revenues fell from £129.9million to £118.5million in the first quarter of the year.

However, revenue from Shuttle services rose by 10 per cent to £75.8million. The number of cars and trucks carried both went up 11 per cent, to 409,612 and 349,359 respectively.

Eurotunnel recently undertook a major financial restructuring exercise to more than halve its debt. Most large shareholders have backed the plan, but smaller ones have voiced objections.

Jacques Gounon, Eurotunnel's chairman and chief executive, said: "These are very good figures and are particularly encouraging for the new Groupe Eurotunnel."