Bouygues: First Half 2011 Results

By Bouygues, PRNE
Tuesday, 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%

 

www.bouygues.com

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

YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :