Profit

Bouygues profit exceeds estimates, returns to pre-pandemic levels, Telecom News, ET Telecom


The French Bouygues announced Tuesday a baseline result over nine months higher than forecasts, driven by a solid performance of its TF1 broadcasting activities and its construction branch Colas and customer gains in its telecoms division.

The Paris-based group posted current operating income of 1.14 billion euros ($ 1.3 billion), just above analysts’ estimates of 1.13 billion and exceeding previous levels. the pandemic.

For the same period last year, Bouygues posted a basic result of only 681 million euros.

Its construction activities benefited from major road contracts in Canada and Madagascar, while Bouygues Telecom added mobile and broadband customers, boosting its sales.

The group, which plans to merge TF1 with its competitor M6, has recorded audience market share gains in key age groups as well as strong demand for television advertising.

Managing Director Oliver Roussat told reporters he was “fairly confident” that the French regulator would approve the merger when it decides next October, the decision depending in part on the nature of the markets selected by the joint group.

The planned merger would bring together the two largest private French broadcasters and would see the joint entity controlling three quarters of the country’s television advertising market.

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Analysts noted the “small” overruns over consensus forecasts, but the group’s net profit was slightly lower than estimated as it included operating costs such as its planned acquisition of Equans.

Bouygues agreed earlier in November to buy the services branch of the energy group Engie in a transaction that would be its largest acquisition ever and would make its new Energy and Services segment its largest commercial division.

Roussat said the company has also faced soaring raw material costs, from steel prices to freight from China.

“Travel costs have literally exploded,” he said. “In some cases the costs have been multiplied by eight or nine.”

However, Roussat said Bouygues was able to soften the blow by passing costs through its short-term contracts, while some longer-term deals included provisions for inflation.