Welcome!

Mobile IoT Authors: Elizabeth White, Sematext Blog, Liz McMillan, Fouad Khalil, Kevin Jackson

News Feed Item

Bouygues: Nine-month 2012 Results

PARIS, November 14, 2012 /PRNewswire/ --

  • Sales: €24.6 billion (+4%)
  • Net profit: €564 million (-29%), impacted by Bouygues Telecom
  • Construction businesses' order book at a high level, up 10% at €26.9 billion
  • Alstom's performances validates its roadmap
  • Sales target revised upwards to €33.2 billion

The Bouygues group reported a 4% increase in consolidated sales in the first nine months of 2012 to €24.6 billion (up 1% like-for-like and at constant exchange rates).

Current operating profit amounted to €954 million, down 29% on the first nine months of 2011, and operating profit fell 38% to €859 million after the inclusion of non-recurring charges related to adaptation plans at Bouygues Telecom and TF1. Net profit was also down 29% at €564 million. In keeping with the half-year trend, these results are mainly due to the lower profitability at Bouygues Telecom.

The financial structure is sound, with net debt under tight control.

Key figures

 
    (EUR million)
                                       9-month 2011   9-month 2012       Change
 
    Sales                                    23,719         24,597          +4%
  
    Current operating profit                  1,338            954         -29%
    Operating profit                       1,376[1]         859[2]         -38%
    Net profit attributable to the 
    Group                                       794            564         -29%
 
    Net debt[3]                               3,808       5,832[4]   +EUR2,024m
    Net gearing[3]                              36%            61%      +25 pts


[1]Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom

[2]Including €95 million linked to the cost of the adaptation plans at Bouygues Telecom and TF1

[3]End of period

[4]Net debt of €3,639 million before factoring in two one-off events: the share repurchase tender offer (€1,250 million) and the purchase of
4G frequencies (€943 million)

Business areas

In keeping with the first-half trend, the construction businesses posted good commercial performances. The order book stood at €26.9 billion, 10% higher than at end-September 2011, giving good visibility on future business activity.

Bouygues Construction reported nine-month sales of €7,748 million, up 9% overall (up 6% in France and 13% on international markets) and 4% like-for-like and at constant exchange rates. The current operating margin was a robust 3.4% and net profit amounted to €174 million, up 9%.

Order intake was very high, both in France and in international markets, growing 8% to reach €9 billion. The order book stood at €17 billion, 12% higher than at end-September 2011, with international markets accounting for 45%.

Bouygues Immobilier reported a 5% increase in sales to €1,631 million for the first nine months of 2012 (up 8% in residential property, down 16% in commercial property). The operating margin stood at 7.5%, reflecting early adjustment measures in response to lower residential property reservations in a contracting French market. Net profit amounted to €75 million.

In an unfavourable economic and tax environment, residential property reservations reflected the wait-and-see stance on the property market and a fall in buy-to-let investment. Reservations were 32% lower than in the first nine months of 2011 at €1,040 million. Commercial property reservations stood at a good level, up 6% to €358 million despite a sluggish market.

Sustained by the commercial property segment, the order book rose 9% in comparison with end-September 2011 to €2,879 million, offering good visibility and representing 14 months of sales.

Colas reported sales of €9,670 million, an increase of 5% overall (up 1% in France and 12% on international markets) and 3% like-for-like and at constant exchange rates. Current operating profit fell €38 million to €236 million, affected by delays in contract execution due to poor weather conditions in mainland France in the first half of 2012 and lower profitability on the sale of refined oil products. The cost of raw materials used in the refining activity has risen sharply and could only be partially passed on to customers.

Net profit amounted to €178 million, €31 million less than in the first nine months of 2011.

The order book grew 5% to €7 billion versus end-September 2011.

TF1 has launched the second phase of its optimisation plan

TF1 reported a 1% rise in sales to €1,853 million. The fall in advertising revenue was offset by the growth of diversification activities, up 6% on the first nine months of 2011, but continued to affect current operating profit, which stood at €154 million, down €41 million. TF1 has launched the second phase of its optimisation plan, designed to make its business model more flexible and to continue cutting costs. The plan aims to generate recurring cost savings of €85 million by end-2014. A non-recurring €25-million charge related to this plan was booked in the third quarter of 2012. Nine-month 2012 operating profit amounted to €129 million and net profit to €87 million, €38 million lower than in the first nine months of 2011.

Bouygues Telecom confirms its 2012 targets and is continuing its adaptation plan

Bouygues Telecom reported an 8% drop in nine-month 2012 sales to €3,951 million and sales from network dropped 8% to €3,518 million. As expected, mobile sales from network continued to decline in the third quarter, while sales in the fixed broadband segment showed strong growth.

EBITDA stood at €807 million, €228 million lower than in the first nine months of 2011, in line with the full-year target of €900 million. Current operating profit amounted to €206 million, reflecting the drop in EBITDA as well as the increase in amortisation expense and provisions. Operating profit for the first nine months of 2012, at €136 million, included a €70-million non-recurring charge related to the adaptation plan, booked in the third quarter. Net profit amounted to €76 million.

The €300-million adaptation and savings plan is being gradually rolled out and is expected to have a full impact in 2013. The voluntary redundancy plan concerning 556 employees is currently under way.

In keeping with the trend of the second quarter, Bouygues Telecom improved its commercial performance in the mobile segment. It acquired 178,000 new mobile customers, with a net gain of 11,000 customers, excluding the impact of integrating Darty Telecom and Simyo. 188,000 new plan customers joined Bouygues Telecom in the third quarter of 2012, including 64,000 Darty Telecom customers.

B&YOU continued to grow, with a total of 625,000 customers at end-September 2012.

Finally, Bouygues Telecom continued to expand on the fixed broadband market, with 359,000 net additions in the third quarter and 77,000 new customers excluding the impact of integrating Darty Telecom. This gave a base of 1.8 million customers[1] at 30 September 2012, up 57% compared with 30 September 2011.

[1]Includes broadband and very-high-speed broadband subscribers. Customers gained following the acquisition of Darty Telecom,

effective as of 24 July 2012, are included in Q3 2012 financial statements.

Alstom's performances validates its roadmap

As announced, Alstom contributed €181 million to the Group's net profit in the first nine months of 2012, compared with €134 million in the first nine months of 2011.

Order intake grew robustly by 19% to €12.1 billion in the first half of FY2012/13. The order book at end-September stood at €52 billion, representing 31 months' sales.

Alstom confirmed that it expects sales to grow by more than 5% per year for the current fiscal year and the next two fiscal years, matched by a steady improvement in the operating margin to around 8% by March 2015. Free cash flow is expected to be positive in each of the next three fiscal years.

Following Alstom's €350-million capital increase, via a private placement, on 4 October 2012, Bouygues' stake in Alstom has fallen to 29.4% from 30.7% on 30 September 2012.

Under IFRS, this event triggers a dilution loss of €53 million, which will be recognised as a non-current operating charge in the fourth quarter of 2012.

Financial position

A €109-million increase in free cash flow[1] in the construction businesses partly offset the €241-million[2] drop in free cash flow at Bouygues Telecom. Overall, the Group's free cash flow in the first nine months of the year amounted to €713 million[2], €173 million less than in the same period of 2011.

Net debt amounted to €5.8 billion at end-September 2012. This represents an improvement of €169 million in comparison with end-September 2011, before factoring in the purchase of two blocks of 4G frequencies (€943 million) and the share repurchase tender offer (€1,250 million).

The Group launched a €700-million bond issue in October 2012, redeemable in 2023. The Group has a high level of liquidity (€7.3 billion) and an evenly-spread redemption schedule.

[1]Before the change in working capital requirement

[2]Before investment in 4G frequencies in the first nine months of 2012 (acquisition cost and capitalised interest)

Significant events since 30 June 2012

  • 3 July 2012: Bouygues Telecom announces a voluntary redundancy plan concerning 556 jobs.
  • 3 July 2012: Bouygues Bâtiment International, a Bouygues Construction subsidiary, takes 100% ownership of Leadbitter.
  • 5 July 2012: TF1 signs the agreement for its new HD1 channel with the French broadcasting authority, CSA.
  • 28 August 2012: Bouygues Telecom and Darty announce the launch of Bouygues Telecom Edition Darty offers, sold exclusively in Darty's 226 stores.
  • 6 September 2012: B&YOU launches the only prepaid card without an expiry date and with the market's lowest prepaid rates for calls, SMS and mobile internet in mainland France.
  • 20 September 2012: Launch of the Campus Val de Bièvre project, designed and developed by Bouygues Immobilier under its Rehagreen® initiative.
  • 23 October 2012: Colas announces a project to reorganise its roads business in mainland France around seven regional subsidiaries, all under the Colas name.
  • 25 October 2012: Colas Rail, in a consortium, wins an €85-million contract to extend Line 1 of the Algiers metro.
  • 30 October 2012: Bouygues Construction, in a consortium, wins a €110-million contract to build several sports facilities in Canada.
  • 6 November 2012: B&YOU launches new ground-breaking offers on the low-cost mobile market.

2012 sales target and outlook

On the basis of the situation at 30 September, the 2012 sales target has been revised upwards from €32.8 billion to €33.2 billion, 2% higher than in 2011.

    Sales
 
    by business area
                                              2012 target

    (EUR million)         2011    Reported   Reported    Reported      Reported   % change
                                  in March     in May   in August   in November
                                                      
    Bouygues
    Construction           9,802    10,000    10,100       10,200       10,400         +6%
    Bouygues Immobilier    2,465     2,450     2,450        2,450        2,450          =
    Colas                 12,412    12,500    12,700       12,700       12,900         +4%
    TF1                    2,620     2,620     2,620        2,620        2,620          =
    Bouygues Telecom       5,741     5,140     5,140        5,180        5,200         -9%
    Holding company and
    other                    120       120       120          120          120          nm
 
    Intra-Group
    elimination            (454)     (480)     (480)        (470)        (490)          nm
 
    TOTAL                 32,706    32,350    32,650       32,800       33,200         +2%
    o/w France            22,601    22,050    21,950       22,050       22,300         -1%
    o/w international     10,105    10,300    10,700       10,750       10,900         +8%


The amended 2012 Budget Act and the 2013 Budget Act should result in higher taxes and charges of around €70 million in 2012 and about a further €10 million in 2013.

Financial calendar:

27 February 2013: full-year 2012 results

7.00 am: press release

9.00 am: press conference

11.00 am: analysts' meeting


The financial statements have been subject to a limited review by the statutory auditors and the corresponding report has been issued.

You will find the full financial statements and notes to the financial statements on http://www.bouygues.com.



http://www.bouygues.com

 
                       
    Condensed consolidated
    income statement                         9-month         % change
    (EUR million)                       
                                         2011       2012                   
                                          
    Sales                              23,719     24,597          +4%
 
    Current operating profit            1,338        954         -29%
 
    Other operating income and
    expenses                            38[1]    (95)[2]           nm
 
    Operating profit                    1,376        859         -38%
 
    Cost of net debt                    (205)      (212)          +3%
     
    Other financial income and
    expenses                              (1)          8           nm
 
    Income tax expense                  (395)       (232)        -41%
 
    Share of profits and losses from
    associates                            143        210         +47%
 
    Net profit                            918        633         -31%
 
    Minority interests                  (124)       (69)         -44%
 
    Net profit attributable to the
    Group                                 794        564         -29%


[1]Non-current income relating to an asset disposal at Bouygues Telecom

[2]Cost of the adaptation plans at Bouygues Telecom (for €70 million) and TF1 (for €25 million)

        
    Third-quarter consolidated                 
    income statement                     Third-quarter        
    (EUR million)                        2011      2012     % change
 
    Sales                               8,505     9,092          +7%
 
    Current operating profit              586       478         -18%
 
    Operating profit                   624[1]    383[2]         -39%
 
    Net profit attributable to the
    Group                                 403       286         -29%


[1]Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom

[2]Including €95 million linked to the cost of the adaptation plans at Bouygues Telecom and TF1

    Sales                                                                    Change
    by business area                                                  like-for-like
    (EUR million)                     9-month         % change      and at constant
                                                                     exchange rates
                                 2011         2012                                                
 
    Bouygues Construction       7,086        7,748         +9%                 +4%
    Bouygues Immobilier         1,548        1,631         +5%                 +5%
    Colas                       9,168        9,670         +5%                 +3%
    TF1                         1,839        1,853         +1%                   =
    Bouygues Telecom            4,285        3,951         -8%                 -9%
    Holding company and
    other                          90           94          nm                  nm
 
    Intra-Group
    elimination                 (297)        (350)          nm                  nm
  
    Total                      23,719       24,597         +4%                 +1%
          o/w France        16,391[1]       16,367           =                 -1%
      o/w international      7,328[1]        8,230        +12%                 +4%
 


[1]Export sales of refined oil products were reclassified according to their location

    Contribution of business areas
    to
    EBITDA
    (EUR million)                         9-month        % change
                                       2011     2012
  
    Bouygues Construction               370      432         +17%
    Bouygues Immobilier                 126      117          -7%
    Colas                               595      538         -10%
    TF1                                 229      201         -12%
    Bouygues Telecom                  1,035      807         -22%
    Holding company and other          (41)     (24)           nm
 
    TOTAL                             2,314    2,071         -11%


    Contribution of business areas
    to current operating profit           9-month        % change
    (EUR million)                     
                                       2011     2012
 
    Bouygues Construction               266      260          -2%
    Bouygues Immobilier                 127      123          -3%
    Colas                               274      236         -14%
    TF1                                 195      154         -21%
    Bouygues Telecom                    512      206         -60%
    Holding company and other          (36)     (25)           nm
 
    TOTAL                             1,338      954         -29%


    Contribution of business areas
    to net profit attributable to the
    Group                                 9-month       % change
    (EUR million)                                 
                                       2011     2012
 
    Bouygues Construction               159      174         +9%
    Bouygues Immobilier                  78       75         -4%
    Colas                               201      172        -14%
    TF1                                  55       38        -31%
    Bouygues Telecom                    316       68        -78%
    Alstom                              134      181        +35%
    Holding company and other         (149)    (144)          nm
 
    TOTAL                               794      564        -29%


    Net cash by business area              9-month         Change
    (EUR million)                                          (EURm)
                                       2011      2012
 
    Bouygues Construction             2,393     2,700    +EUR307m
    Bouygues Immobilier                 275       168    -EUR107m
    Colas                             (823)     (786)     +EUR37m
    TF1                                  87      (18)    -EUR105m
    Bouygues Telecom                  (440)   (1,475)  -EUR1,035m
    Holding company and other       (5,300)   (6,421)  -EUR1,121m
 
    TOTAL                           (3,808)   (5,832)  -EUR2,024m


    Contribution of business
    areas to cash flow
    (EUR million)                         9-month          Change
                                                           (EURm)
                                      2011       2012
 
    Bouygues Construction              400        419     +EUR19m
    Bouygues Immobilier                129        121      -EUR8m
    Colas                              620        621      +EUR1m
    TF1                                242        169     -EUR73m
    Bouygues Telecom                 1,052        723    -EUR329m
    Holding company and other           40         62     +EUR22m
 
    TOTAL                            2,483      2,115    -EUR368m


    Contribution of business
    areas to net capital
    expenditure
    (EUR million)                          9-month        Change
                                                          (EURm)
                                      2011       2012
 
    Bouygues Construction              177        117    -EUR60m
    Bouygues Immobilier                  7         10     +EUR3m
    Colas                              252        223    -EUR29m
    TF1                                 29         18    -EUR11m
    Bouygues Telecom                   536        586    +EUR50m
    Holding company and other          (4)          4     +EUR8m
 
    Total excl. 4G frequencies
    (800 MHz band)                     997        958    -EUR39m
    4G frequencies (800 MHz band)        0     715[1]   +EUR715m
    TOTAL                              997      1,673   +EUR676m


[1]Includes acquisition cost and capitalised interest

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.