Bouygues First-half 2010. Sales: EUR14.7 Billion (-1%). Net Profit: EUR532 Million (-3%). A Satisfactory Operating Performance in Four Business Areas, a More Difficult First Half for Colas. 2010 Sales Target Revised Upward to EUR30.4 Billion
By Bouygues, PRNEMonday, August 30, 2010
PARIS, August 31, 2010 - The Group reported better-than-expected sales of EUR14.7
billion in the first half of 2010, down 1% on the first half of 2009 and 2%
like-for-like and at constant exchange rates. Operating profit amounted to
EUR698 million (-10%) and net profit to EUR532 million (-3%). The financial
structure is very healthy and net debt is in keeping with the improvement
seen at end-December 2009.
Key figures
First-half First-half Change
2009 2010
(EUR million) First-half
restated 2009
published
Sales 14,790(1) 14,655 -1% 14,929
Operating profit 772(1) 698 -10% 789
Net profit attributable 547 532 -3% 547
to the Group
Net debt(2) 6,259 4,205 -EUR2,054m 6,259
Net gearing(2) 72% 43% -29 pts 72%
(1) Applying the same accounting policy as in 2010, excluding
contributions from Finagestion
(2) End of period
Business areas
Bouygues Construction had a satisfactory first half. Sales
were in line with the full-year target and amounted to EUR4,530 million, a
drop of 5% (down 6% in France and 3% on international markets).
The operating margin was virtually stable at 3.2% in the first
half of 2010. Low interest rates continued to impact net profit, down 26% at
EUR89 million.
In the first half of 2010, order intakes reached an all-time
high of EUR6.1 billion, a 38% increase on the first half of 2009 (up 12% in
France and 73% internationally). The order book rose to a record EUR13.9
billion, 16% higher than at end-December 2009. It does not as yet include the
Singapore Sports Hub project signed in August 2010 for EUR770 million.
Bouygues Immobilier did better than expected in the first half
of the year. Sales stood at EUR1,313 million, down 8% overall (up 5% in the
residential segment, down 33% in the commercial segment). The operating
margin improved one point to 8.3% compared with the first half of 2009 due to
the restoration of margins in the residential property business. Net profit
fell 7% to EUR56 million.
In the first half of 2010, business activity remained buoyant
in the residential property segment, with reservations rising 39% to EUR1,175
million. Commercial property reservations remained low in a market which is
at a cyclical low. Overall, reservations totalled EUR1,243 million, 32%
higher than at end-June 2009. The order book was up 3% on 31 March 2010, to
EUR2.2 billion.
First-half 2010 was more difficult for Colas. Improved
business activity in the second quarter made up for some of the lag
accumulated in the first quarter. Sales amounted to EUR5,002 million, 2%
lower than in the first half of a 2009 (down 3% in France and 1% on
international markets). A deteriorated economic situation in Central Europe
and fierce competitive pressure weighed on profitability, with an operating
loss of EUR47 million (including a loss of EUR57 million in Central Europe)
versus operating profit of EUR75 million at end-June 2009. In the first half
of 2010, net loss was EUR29 million compared with net profit of EUR58 million
at end-June 2009. In this context, Colas is continuing the measures begun in
2009 and is introducing a tougher action plan in Central Europe and France to
return to operating margin growth in 2011.
The order book at end-June 2010 stood at EUR7,198 million,
stable compared with end-June 2009, with an increase of 4% in France and a
decline of 4% on international markets.
TF1 performed well in the first half of 2010 as its strategy
is bearing fruit. Sales rose 14% to EUR1,285 million, driven by a pick-up in
advertising spend. Operating profit tripled to EUR104 million and net profit
rose by 51% to EUR74 million. The acquisition of TMC and NT1 was finalised on
11 June 2010 and the companies will be fully consolidated in TF1's financial
statements from 1 July 2010.
As a result of its commercial performance, Bouygues Telecom
generated strong organic growth. Overall sales rose by 4% to EUR2,732 million
and sales from network by the same figure to EUR2,506 million. Stripping out
the impact of the cut in voice and SMS termination rates, the growth rate of
sales from network would have been 13%. EBITDA amounted to EUR734 million, up
5%, and net profit to EUR264 million, down 1%.
Commercial performance remained strong. 351,000 new mobile
contract customers joined Bouygues Telecom in the first half of 2010,
representing 24% of net market growth(1). Bouygues Telecom had 10,514,000
mobile customers at end-June 2010, 8,277,000 of them on call plans (78.7% of
the total customer base, a year-on-year increase of 3.1 points). The
fixed-line business continued to grow, with 214,000 net activations in the
first half of the year (of which 97,000 in the second quarter) and 525,000
Bbox routers activated(2) at 30 June 2010. These good results confirm the
success of Bouygues Telecom's growth strategy.
(1) Arcep (French communications regulator) data
(2) Bbox routers in operation or the number of customers billed
Alstom
Alstom contributed EUR216 million to Group first-half 2010 net
profit*, an increase of 19%.
Alstom announced an order book of EUR42 billion at end-June
2010, or 27 months of sales, and an operating margin target of between 7% and
8% for FY2010/2011 and FY2011/2012. In a challenging short-term commercial
environment, Alstom still has solid potential in its three businesses.
Reminder: Bouygues received 4.4 million Alstom shares in
return for its 50% stake in the Alstom Hydro Holding joint venture. As a
result of the transaction, the Group booked financial income included in net
profit for EUR41 million in the first quarter of 2010.
*Contribution calculated on the basis of Alstom's net profit
published at 31 March 2010
Financial position
Group net debt at 30 June 2010 came to EUR4.2 billion, EUR2.1
billion less than at 30 June 2009. Shareholders' equity increased EUR1.2
billion to EUR9.9 billion. Net gearing stood at 43%, an improvement of 29
points. Free cash flow amounted to EUR590 million, stable compared with the
first half of 2009. In July 2010, Standard & Poor's confirmed its rating of
A- with a stable outlook.
2010 sales target revised upward to EUR30.4 billion
The 2010 sales target has been revised upward to EUR30.4
billion from the EUR30.1 billion announced in June 2010, as a result of good
commercial performance and better-than-expected sales in the first half of
the year.
The first half of 2010 confirmed the Group's ability to react
and adapt in each of its business areas. With a robust financial structure,
Bouygues is well-placed to grasp opportunities for growth in its markets.
2009 2010 %
Sales by business area target change
(EUR million)
Published
in June
Published Published
in March in August
Bouygues Construction 9,546 9,100 9,100 9,100 -5%
Bouygues Immobilier 2,989 2,100 2,150 2,300 -23%
Colas 11,581 11,500 11,500 11,500 -1%
TF1 2,365 2,410 2,460 2,530 +7%
Bouygues Telecom 5,368 5,370 5,420 5,450 +2%
Holding company and 134 130 130 130 ns
other
Intra-Group elimination (630) (610) (660) (610) ns
TOTAL 31,353 30,000 30,100 30,400 -3%
o/w France 21,678 20,600 20,800 21,100 -3%
o/w international 9,675 9,400 9,300 9,300 -4%
You can find the full financial statements and notes to the
consolidated financial statements on: www.bouygues.com.
These documents have been subject to a limited review by the
statutory auditors and the corresponding report has been issued.
The Half-year Review is accessible at:
www.bouygues.com.
The first-half 2010 results presentation to financial analysts
will be webcast live on 1 September 2010 at 11am (CET) on
www.bouygues.com.
% change First-half
2009
Condensed consolidated income First-half published
statement
(EUR million)
2009 2010
restated(1)
Sales 14,790 14,655 -1% 14,929
Operating profit 772 698 -10% 789
Cost of net debt (170) (162) -5% (171)
Other financial income and 3 36 ns 3
expenses
Income tax expense (203) (204) = (208)
Share of profits and losses from 206 237 +15% 206
associates
Net profit from continuing 608 605 = 619
operations
Net profit from discontinued and 11 0 ns 0
held-for-sale operations
Net profit 619 605 -2% 619
Minority interests (72) (73) +1% (72)
Net profit attributable to the 547 532 -3% 547
Group
(1) Finagestion group's income and expenses reclassified to net
profit from discontinued and held-for-sale operations
%
change
First-quarter consolidated First-quarter First-quarter
income statement
2009
(EUR million) published
2009 2010
restated
Sales 6,579(1) 6,443 -2% 6,655
Operating profit 165(1) 162 -2% 174
Net profit attributable to the 159 181 +14% 159
Group
(1) Applying the same accounting policy as in 2010, excluding
contributions from Finagestion
%
change
Second-quarter Second-quarter Second-quarter
consolidated 2009 published
income statement
(EUR million)
2009 2010
restated
Sales 8,211(1) 8,212 = 8,274
Operating profit 607(1) 536 -12% 615
Net profit attributable to 388 351 -10% 388
the Group
(1) Applying the same accounting policy as in 2010, excluding
contributions from Finagestion
First-half %
Sales by business area change Change
like-for-like
(EUR million) and at
constant
exchange rates
2009 2010
Bouygues Construction 4,758 4,530 -5% -6%
Bouygues Immobilier 1,433 1,313 -8% -9%
Colas 5,116 5,002 -2% -3%
TF1 1,130 1,285 +14% +13%
Bouygues Telecom 2,625 2,732 +4% +4%
Holding company and other 731 70 ns ns
Intra-Group elimination (345)(1) (277) ns ns
Total 14,790(1) 14,655 -1% -2%
o/w France 10,496 10,369 -1% -1%
o/w international 4,294(1) 4,286 = -3%
(1) Applying the same accounting policy as in 2010, excluding sales from
Finagestion (EUR175 million in Holding company and other, -EUR36 million in
Intra-Group elimination)
%
change
Contribution of business areas First-half
to
EBITDA
(EUR million)
2009 2010
Bouygues Construction 304 307 +1%
Bouygues Immobilier 132 91 -31%
Colas 286 142 -50%
TF1 90 123 +37%
Bouygues Telecom 702 734 +5%
Holding company and other (22)(1) (19) ns
TOTAL 1,492(1) 1,378 -8%
(1) Applying the same accounting policy as in 2010, excluding
contribution from Finagestion (EUR43 million in 2009)
%
change
Contribution of business areas First-half
to
Operating profit
(EUR million)
2009 2010
Bouygues Construction 164 144 -12%
Bouygues Immobilier 104 109 +5%
Colas 75 (47) ns
TF1 38 104 x2.7
Bouygues Telecom 415 409 -1%
Holding company and other (24)(1) (21) ns
TOTAL 772(1) 698 -10%
(1) Applying the same accounting policy as in 2010, excluding
contribution from Finagestion (EUR17 million in 2009)
%
Contribution of business areas First-half change
to
Net profit attributable to the
Group
(EUR million)
2009 2010
Bouygues Construction 121 89 -26%
Bouygues Immobilier 60 56 -7%
Colas 57 (28) ns
TF1 21 32 +52%
Bouygues Telecom 240 237 -1%
Alstom 182 216 +19%
Holding company and other (134) (70) ns
TOTAL 547 532 -3%
Change
Net cash by business area At end-June EURm
(EUR million)
2009 2010
Bouygues Construction 2,500 2,922 +EUR422m
Bouygues Immobilier (138) 58 +EUR196m
Colas (919) (952) -EUR33m
TF1 (820) (120) +EUR700m
Bouygues Telecom (681) (505) +EUR176m
Holding company and other (6,201) (5,608) +EUR593m
TOTAL (6,259) (4,205) +EUR2,054m
%
Contribution of business areas First-half change
to
Cash flow
(EUR million)
2009 2010
Bouygues Construction 242 245 +1%
Bouygues Immobilier 89 97 +9%
Colas 289 164 -43%
TF1 85 132 +55%
Bouygues Telecom 707 715 +1%
Holding company and other 781 104 ns
TOTAL 1,490(1) 1,457 -2%
(1) Applying the same accounting policy as in 2010, excluding
contribution from Finagestion (EUR26 million in 2009)
%
Contribution of business areas First-half change
to
Net capital expenditure
(EUR million)
2009 2010
Bouygues Construction 64 114 +78%
Bouygues Immobilier 2 1 -50%
Colas 136 135 -1%
TF1 45 21 -53%
Bouygues Telecom 285 227 -20%
Holding company and other 71 3 ns
TOTAL 539(1) 501 -7%
(1) Applying the same accounting policy as in 2010, excluding
contribution from Finagestion (EUR32 million in 2009)
www.bouygues.com
Press contact: +33(0)1-44-20-12-01 - presse at bouygues.com; Investor and analyst contact: +33(0)1-44-20-10-79 - investors at bouygues.com
Tags: August 31, Bouygues, France, Paris
