Bouygues: First Half 2011 Results
By Bouygues, PRNETuesday, August 30, 2011
PARIS, August 31, 2011 -
- Solid operating performance confirmed by an improvement in Q2 results
- Sales: €15.2 billion (+4%)
- Current operating profit: €752 million (+6%)
- 2011 sales target revised upward to €32 billion
Bouygues turned in a solid operating performance in the first half of 2011, endorsing the full-year roadmap for all the Group’s business areas. The Construction businesses returned to growth and improved profitability, TF1 confirmed its turnaround and Bouygues Telecom continued its growth strategy in a highly competitive environment.
The Group reported a 4% increase in consolidated sales in the first half of 2011 (1% like-for-like and at constant exchange rates) to €15.2 billion. Current operating profit rose 6% to €752 million, while net profit was down by €141 million to €391 million. The decline in net profit was due to a lower contribution from Alstom (€122 million less than in the first half of 2010) and non-recurring items of €41 million in the first quarter of 2010.
Results improved in the second quarter of 2011 compared with the second quarter of 2010: sales rose by 4%, current operating profit by 11% and net profit by 2%.
The financial structure remains very sound and net debt is virtually stable in relation to end-June 2010.
Key figures
First half First half
(EUR million)
2010 2011 Change
Sales 14,655 15,214 +4%
Current operating profit 711[1] 752 +6%
Operating profit 698 752 +8%
Net profit attributable to the
Group 532 391 -27%
Net debt[2] 4,205 4,341 +EUR136m
Net gearing[2] 43% 42% -1 pt
[1] The figure reported on 31 August 2010 was €698 million. -€13 million was reclassified to other operating income and expenses at Colas.
[2] End of period
Business areas
The Construction businesses returned to growth and improved profitability. Commercial activity was strong.
Bouygues Construction reported a satisfactory operating performance in the first half of the year. Sales rose 4% to €4,705 million (up 5% in France and 2% on international markets). The operating margin held up well at 3.5% and net profit rose 6% to €94 million.
Commercial activity was very strong, with order intake of €6.1 billion in the first half of the year, the same as the already high level reported in the year earlier period. The order book stood at a record €15.5 billion, 12% higher than at 30 June 2010. It includes the French Ministry of Defence Balard project, worth €1 billion.
First-half results at Bouygues Immobilier were in line with the company’s full-year roadmap. Sales declined 16% to €1,098 million. Commercial property sales were down 47% squeezed by a tough comparative with the first half of 2010. Residential property sales dropped 6% overall in the first six months but started to rise again in the second quarter. The current operating margin and net profit remained stable at 8.3% and €56 million respectively.
After a record year in 2010, residential property reservations remained high at €990 million. Commercial property reservations rose sharply to €324 million in a still hesitant market. Overall, reservations were up 6% on the first half of 2010 at €1,314 million.
The order book was 18% higher than at end-June 2010 at €2.5 billion.
At Colas, the gradual improvement in profitability was confirmed in the first half of 2011.
Sales were up 8% to €5,400 million (up 15% in France and down 3% on international markets). After benefiting from favourable weather conditions in France in the first quarter, sales remained robust in the second quarter. As expected, current operating profit improved - it was €34 million higher than in the first half of 2010 - as the positive effects of the action plan introduced in 2010 began to show. Net profit amounted to €2 million, €31 million up on the first half of 2010.
Good business activity in the first half of 2011 kept the order book at a high level of €7.2 billion (the same as at end-June 2010), despite sales growth.
TF1 put in a very good first half and confirmed its turnaround.
Sales at TF1 were virtually stable at €1,278 million. The current operating margin improved substantially to 14.6%, 6.5 points more than in the first half of 2010, and net profit rose 61% to €119 million as TF1 confirmed its capacity to closely manage costs and adapt its business model.
Standard & Poor’s raised TF1’s credit rating to BBB+ with a stable outlook, reflecting the company’s healthy financial structure.
Bouygues Telecom continued its growth strategy in a highly competitive environment and performed in line with its expectations.
Bouygues Telecom reported a 5% increase in first-half sales to €2,866 million and a 3% rise in sales from network to €2,575 million. As anticipated, EBITDA remained stable stripping out the effect of the cut in mobile termination rate differentials, despite fierce competitive pressure. EBITDA amounted to €665 million, down 9%, and net profit to €213 million, down 19%.
In a very brisk mobile phone market, Bouygues Telecom signed up 206,000 new mobile contract customers in the first half of 2011, representing 21% of net market growth[1]. Bouygues Telecom had a total customer base of 11,187,000 at 30 June 2011, 80% of them on mobile call plans, a 1.3-point rise over a
12-month period. On 18 July 2011, the operator innovated once again by launching the new B&YOU service, a mobile plan that targets the “internet generation”.
215,000 new fixed broadband customers joined Bouygues Telecom in the first half of 2011[2], giving a total of 1,023,000 fixed broadband customers at 30 June 2011.
[1]Arcep (French communications regulator) data
[2]Including broadband and very-high-speed subscribers.
Alstom
Alstom contributed €94 million to the Group’s first-half net profit, compared with €216 million in the first half of 2010. As announced, after a first quarter severely hit by non-recurring expenses taken by Alstom in the second half of FY2010/2011, Alstom contributed €71 million to Group net profit in the second quarter of 2011 (versus €101 million in the second quarter of 2010).
Carrying on from the second half of FY2010/2011, Alstom recorded strong growth in its order intake in the first quarter of FY2011/2012 and confirmed its operating margin target of between 7% and 8%
for FY2011/2012.
Financial position
Cash flow increased slightly to €1,502 million, in line with the rise in operating profit. As anticipated, net capital expenditure rose to €651 million, €150 million more than in the first half of 2010, generating free cash flow[1] of €494 million.
Group net debt was virtually stable in relation to end-June 2010 at €4.3 billion.
[1]Before the change in working capital requirement
Cancellation of shares
The Board of Directors decided to cancel 9,973,287 shares, 5,153,093 of which were acquired in the first half of 2011. Following the cancellation, the number of shares stood at 356,307,709 and voting rights at 479,801,903.
Sales target
Sales
by business area 2010 2011 %
(EUR million) actual target change
Reported Reported Reported
in March in May in August
Bouygues
Construction 9,235 9,400 9,600 9,600 +4%
Bouygues Immobilier 2,418 2,440 2,440 2,440 +1%
Colas 11,661 11,800 11,800 11,900 +2%
TF1 2,622 2,630 2,630 2,630 =
Bouygues Telecom 5,636 5,730 5,730 5,730 +2%
Holding company and
other 132 120 120 120 nm
Intra-Group
elimination (479) (420) (420) (420) nm
TOTAL 31,225 31,700 31,900 32,000 +2%
o/w France 21,576[1] 22,000 22,100 22,400 +4%
o/w international 9,649[1] 9,700 9,800 9,600 -1%
[1] Following the change in status of Mayotte that has become a French department, sales were reclassified to France
Financial calendar:
15 November 2011: nine-month 2011 sales and earnings (5.45pm CET)
Find the full financial statements and notes to the financial statements on www.bouygues.com.
The financial statements 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 2011 results presentation to financial analysts will be webcast live on 31 August 2011 from 11am (CET) on www.bouygues.com.
Condensed consolidated
income statement %
(EUR million) First half change
2010 2011
Sales 14,655 15,214 +4%
Current operating profit 711[1] 752 +6%
Operating profit 698 752 +8%
Cost of net debt (162) (134) -17%
Other financial income and expenses 36 (2) nm
Income tax expense (204) (223) +9%
Share of profits and losses from associates 237 91 -62%
Net profit 605 484 -20%
Minority interests (73) (93) +27%
Net profit attributable to the Group 532 391 -27%
[1] The figure reported on 31 August 2010 was €698 million. -€13 million was reclassified to other operating
income and expenses at Colas
First-quarter consolidated
income statement
First quarter %
(EUR million) change
2010 2011
Sales 6,443 6,686 +4%
Current operating profit 170[1] 153 -10%
Operating profit 162 153 -6%
Net profit attributable to the Group 181 34 -81%
[1] The figure reported on 1 June 2010 was €162 million. -€8 million was reclassified to other operating
income and expenses at Colas
Second-quarter consolidated
income statement Second quarter %
(EUR million) change
2010 2011
Sales 8,212 8,528 +4%
Current operating profit 541[1] 599 +11%
Operating profit 536 599 +12%
Net profit attributable to the Group 351 357 +2%
[1] The figure reported on 31 August 2010 was €536 million. -€5 million was reclassified to other operating
income and expenses at Colas
Sales by business area Change
(EUR million) like-for-like
First half % and at constant
2010 2011 change exchange rates
Bouygues Construction 4,530 4,705 +4% +1%
Bouygues Immobilier 1,313 1,098 -16% -16%
Colas 5,002 5,400 +8% +4%
TF1 1,285 1,278 -1% -4%
Bouygues Telecom 2,732 2,866 +5% +5%
Holding company and other 70 64 nm nm
Intra-Group elimination (277) (197) nm nm
Total 14,655 15,214 +4% +1%
o/w France 10,401[1] 11,064 +6% +4%
o/w international 4,254[1] 4,150 -2% -6%
[1] Following the change in status of Mayotte that has become a French department, sales were reclassified to France
Contribution of business areas to
EBITDA
First half %
(EUR million) change
2010 2011
Bouygues Construction 307 252 -18%
Bouygues Immobilier 91 86 -5%
Colas 148[1] 190 +28%
TF1 123 234 +90%
Bouygues Telecom 734 665 -9%
Holding company and other (19) (19) nm
TOTAL 1,384[1] 1,408 +2%
[1] The figure reported on 31 August 2010: €1,378 million for the Group and €142 million for Colas. -€6 million
was reclassified to other operating income and expenses at Colas
Contribution of business areas to
Current operating profit
First half %
(EUR million) change
2010 2011
Bouygues Construction 144 165 +15%
Bouygues Immobilier 109 91 -17%
Colas (34)[1] 0 nm
TF1 104 187 +80%
Bouygues Telecom 409 331 -19%
Holding company and other (21) (22) nm
TOTAL 711[1] 752 +6%
[1] The figure reported on 31 August 2010: €698 million for the Group and -€47 million for Colas. -€13 million
was reclassified to other operating income and expenses at Colas
Contribution of business areas to
Net profit attributable to the
Group
First half %
(EUR million) change
2010 2011
Bouygues Construction 89 94 +6%
Bouygues Immobilier 56 56 =
Colas (28) 2 nm
TF1 32 51 +59%
Bouygues Telecom 237 191 -19%
Alstom 216 94 -56%
Holding company and other (70) (97) nm
TOTAL 532 391 -27%
Net cash by business area Change
At end-June
(EUR million) EURm
2010 2011
Bouygues Construction 2,922 2,236 -EUR686m
Bouygues Immobilier 58 390 +EUR332m
Colas (952) (1,046) -EUR94m
TF1 (120) 11 +EUR131m
Bouygues Telecom (505) (619) -EUR114m
Holding company and other (5,608) (5,313) +EUR295m
TOTAL (4,205) (4,341) -EUR136m
Contribution of business areas to
Cash flow %
First half
(EUR million) change
2010 2011
Bouygues Construction 245 260 +6%
Bouygues Immobilier 97 94 -3%
Colas 164 220 +34%
TF1 132 220 +67%
Bouygues Telecom 715 659 -8%
Holding company and other 104 49 nm
TOTAL 1,457 1,502 +3%
Contribution of business areas to
Net capital expenditure %
First half
(EUR million) change
2010 2011
Bouygues Construction 114 121 +6%
Bouygues Immobilier 1 4 x4
Colas 135 159 +18%
TF1 21 18 -14%
Bouygues Telecom 227 348 +53%
Holding company and other 3 1 nm
TOTAL 501 651 +30%
Press contact: +33(0)1 44 20 12 01 - presse at bouygues.com; Investors & analysts contact: +33(0)1 44 20 10 79 - investors at bouygues.com
Tags: August 31, Bouygues, France, Paris
