Bouygues; Nine-month 2011 Results
By Bouygues, PRNEMonday, November 14, 2011
PARIS, November 15, 2011 -
- Sales: €23.7billion (+3%)
- Current operating profit: €1,338million (+1%)
- Good commercial activity and high order book for the Construction businesses
- Very healthy financial structure
Sales target revised upwards to €32.2billion
The operating performance in the first nine months of 2011 was robust, in keeping with the first half of 2011 and in line with the 2011 roadmap.
The Bouygues group reported a 3% increase in consolidated sales (up 1% like-for-like and at constant exchange rates) to €23.7 billion. Current operating profit was up 1% to €1,338 million. Net profit attributable to the Group stood at €794 million. The change in net profit compared with the first nine months of 2010
(-€129 million) was mainly due to the lower contribution from Alstom.
The financial structure is very healthy, with net debt stable vs. end-September 2010 and substantial liquidity.
Key figures
(EUR million)
9-month 2010 9-month 2011 Change
Sales 23,067 23,719 +3%
Current operating profit 1,328 1,338 +1%
Operating profit 1,398[1] 1,376[2] -2%
Net profit attributable to the
Group 923 794 -14%
Net debt[3] 3,770 3,808 +EUR38m
Net gearing[3] 37% 36% -1 pt
[1]Including €70 million of other operating income and expenses, or +€96 million at TF1 and -€26 million at Colas
[2]Including €38 million of other operating income and expenses at Bouygues Telecom
[3]End of period
Business areas
The Construction businesses recorded good commercial activity and improved profitability.
Third-quarter 2011 order intake remained buoyant in an uncertain economic environment. The order book remained at a high level, despite sales growth.
Bouygues Construction posted a 4% increase in sales to €7,086 million (up 3% in France and 6% on international markets). The operating margin stood at 3.8%, reflecting the smooth execution of contracts in progress. Net profit rose 11% to €159 million.
Order intake remained at a high level (€8.3 billion over the first nine months of 2011). An order book of €15.3 billion (up 7% vs. end-September 2010) offers Bouygues Construction good visibility on future activity.
Bouygues Immobilier reported a 12% decline in sales to €1,548 million (down 1% in residential property and down 52% in commercial property). While the commercial property business remained affected by a tough comparison basis, the pick-up in residential property was confirmed with a third-quarter rise in sales of 11%, vs. 2% in the second quarter and -14% in the first quarter of 2011. The operating margin was firm at 8.2% and net profit amounted to €78 million.
After a record 2010, residential property reservations remained at a high level and reached €1,530 million with sharp third-quarter 2011 growth of 12%. Overall reservations grew 8% to €1,868 million in the first nine months of 2011. The order book was up 20% on end-September 2010 to €2.6 billion.
Colas recorded a 4% rise in sales to €9,168 million (up 9% in France and down 1% on international markets). As expected, profitability is improving gradually. Current operating profit came to €274 million (up 17%) and the current operating margin to 3%, up 0.3 points. While operating profit increased 31% to €274 million, net profit advanced 33% to €209 million.
Business activity remained strong in the third quarter. Thanks to a good level of order intake, the order book was up 2% vs. end-September 2010, despite sales growth.
TF1: strategic decisions pay off
In the first nine months of 2011, TF1’s sales came to 1,839 million (up 1%), the contraction in the TF1 TV channel’s advertising revenues being offset by the rise in the sales of the other activities. The current operating margin increased to 10.6% (up 3.8 points vs. the first nine months of 2010). Current operating profit at end-September 2011 rose €70 million to €195 million. Net profit attributable to the Group reached €125 million in the first nine months of 2011, a decrease of €45 million due to an exceptional item of €96 million in third quarter 2010, related to the takeover of TMC.
Bouygues Telecom continues to expand its fixed line activity and is experiencing intense competition in the mobile market. Nine-month 2011 results are in line with expectations
Bouygues Telecom’s sales advanced 3% to €4,285 million and sales from the network were up 2% to €3,831 million. As expected, EBITDA was negatively impacted by the cut in mobile termination rate differentials. It came to €1,035 million (-6%). Operating profit amounted to €550 million and this included €38 million of non-current income relating to an asset disposal. Net profit was down 10% to €353 million.
In a fiercely competitive mobile market, Bouygues Telecom gained 275,000 new mobile plan customers in the first nine months of 2011. At end-September 2011, the total customer base came to 11,217,000, of whom 80.4% were on mobile plans (a yoy increase of 1.5 points). Moreover, thanks to the strong momentum in the year to date, the MVNO[1] customer base stood at 1.3 million at the end of third quarter 2011.
The performances on the broadband market were very good. Bouygues Telecom is leader in terms of net market growth with 311,000 new customers in the first nine months of 2011[2]. The operator’s total fixed broadband customer base stood at 1,119,000 at 30 September 2011.
[1] An estimate of the MVNO active customer base. Customers who have carried out an outgoing operation during the last month.
[2] Encompasses both broadband and very-high-speed subscriptions.
Alstom
Alstom’s contribution to Bouygues’ net profit came to €134 million in the first nine months of 2011 (vs.
€239 million for the first nine months of 2010). In third quarter 2011, it improved €17 million to a total of
€40 million.
Confirming the recovery achieved in the second part of FY2010/11, order intake grew 45% in the first half of FY2011/12 to €10.2 billion. Alstom confirmed its operating margin target of between 7% and 8% for FY2011/12.
Financial situation
Cash flow was up slightly to €2,483 million. The free cash flow figure1 of €886 million was almost stable despite the expected increase in net capital expenditure (€997 million, up €133 million vs. the first nine months of 2010).
Cash flow generation has kept net debt at the same level as in September 2010 (€3.8 billion), before factoring in two major operations in the fourth quarter, namely the 2.6 GHz frequencies bought by Bouygues Telecom (€228 million) and the share repurchase tender offer (€1,250 million).
[1]Before change in the working capital requirement
Significant events since 30 June 2011
- 18 July 2011: Bouygues Telecom launched its new mobile plan “B&YOU”.
- 27 July 2011: Bouygues Construction started works on a new development on the site of the former Laennec hospital in Paris for a total of €150 million.
- 28 July 2011: TF1 acquired the 65.7% stake held by Metro International in Metro France, bringing its total interest in the latter to 100%.
- 30 September 2011: Bouygues Telecom announced the launch of Eden, its new simplified range of plans.
- 13 October 2011: Colas won a number of contracts in Canada for an overall amount of €140 million (contract to build a rail intermodal site as well as a number of motorway contracts).
- 10 October 2011: An Extraordinary General Meeting of shareholders authorised the Board of Directors to carry out a reduction in the share capital through a share repurchase tender offer for a maximum of 41.7 million Bouygues shares (11.7% of the share capital), at a price of €30 per share.
- 20 October 2011: Colas Rail was awarded metro contracts as part of a consortium in Los Teques, Venezuela (€96 million) and Kelana Jaya, Malaysia (€96 million).
Full-year 2011 sales target
Based on the performances of the first nine months of 2011, the sales target for 2011 has been revised up to €32.2 billion (+3%).
Sales
by business area 2011
2010 %
(EUR million) actual target change
Reported Reported Reported
in March Reported in in
in May August November
Bouygues Construction 9,235 9,400 9,600 9,600 9,700 +5%
Bouygues Immobilier 2,418 2,440 2,440 2,440 2,440 +1%
Colas 11,661 11,800 11,800 11,900 12,050 +3%
TF1 2,622 2,630 2,630 2,630 2,590 -1%
Bouygues Telecom 5,636 5,730 5,730 5,730 5,730 +2%
Holding company and
other 132 120 120 120 120 nm
Intra-Group elimination (479) (420) (420) (420) (430) nm
TOTAL 31,225 31,700 31,900 32,000 32,200 +3%
o/w France 21,576[1] 22,000 22,100 22,400 22,400 +4%
o/w international 9,649[1] 9,700 9,800 9,600 9,800 +2%
[1]Following the change in status of Mayotte, which has become a French department, sales were reclassified to France.
Financial calendar:
28 February 2012: full-year 2011 results (5.45pm CET)
29 February 2012: full-year 2011 results presentation
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 www.bouygues.com
Condensed consolidated
income statement
9-month
(EUR million) % change
2010 2011
Sales 23,067 23,719 +3%
Current operating profit 1,328 1,338 +1%
Other operating income and
expenses 70[1] 38[2] -46%
Operating profit 1,398 1,376 -2%
Cost of net debt (251) (205) -18%
Other operating income and
expenses 24 (1) nm
Income tax expense (376) (395) +5%
Share of profits and losses from
associates 279 143 -49%
Net profit 1,074 918 -15%
Minority interests (151) (124) -18%
Net profit attributable to the
Group 923 794 -14%
[1] Other operating income and expenses include:
- TF1: exceptional income of €96 million generated by the restatement of the previously-held equity interest
following the takeover of TMC
- Colas: non-current items of -€26 million relating to charges for former competition-related matters
and write-downs of goodwill in Central Europe
[2] Non-current income relating to an asset disposal at Bouygues Telecom
Third-quarter consolidated
income statement
Third quarter %
(EUR million) change
2010 2011
Sales 8,412 8,505 +1%
Current operating profit 617[1] 586 -5%
Operating profit 700[2] 624[3] -11%
Net profit attributable to the
Group 391 403 +3%
1 The figure reported on 2 December 2010 was €630 million, before the reclassification of other operating
income and expenses at Colas.
2Including €83 million of other operating income and expenses, or +€96 million at TF1 and
-€13 million at Colas
3Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom
Change
like-for-like
Sales and at
constant
by business area exchange
9-month % rates
(EUR million) 9-month 2010 2011 change
Bouygues Construction 6,801 7,086 +4% =
Bouygues Immobilier 1,769 1,548 -12% -12%
Colas 8,785 9,168 +4% +3%
TF1 1,826 1,839 +1% -2%
Bouygues Telecom 4,146 4,285 +3% +3%
Holding company and
other 99 90 nm nm
Intra-Group
elimination (359) (297) nm nm
TOTAL 23,067 23,719 +3% +1%
o/w France 15,890[1] 16,498 +4% +2%
o/w international 7,177[1] 7,221 +1% -3%
1Following the change in status of Mayotte which has become a French department, sales were reclassified to France
Contribution of business areas
to
EBITDA
9-month %
(EUR million) change
2010 2011
Bouygues Construction 433 370 -15%
Bouygues Immobilier 144 126 -13%
Colas 565 595 +5%
TF1 172 229 +33%
Bouygues Telecom 1,100 1,035 -6%
Holding company and other (23) (41) nm
TOTAL 2,391 2,314 -3%
Contribution of business areas
to
Current operating profit
9-month %
(EUR million) change
2010 2011
Bouygues Construction 237 266 +12%
Bouygues Immobilier 150 127 -15%
Colas 235 274 +17%
TF1 125 195 +56%
Bouygues Telecom 611 512 -16%
Holding company and other (30) (36) nm
TOTAL 1,328 1,338 +1%
Contribution of business areas
to
Net profit attributable to the
Group %
9-month change
(EUR million)
2010 2011
Bouygues Construction 143 159 +11%
Bouygues Immobilier 77 78 +1%
Colas 152 201 +32%
TF1 73 55 -25%
Bouygues Telecom 351 316 -10%
Alstom 239 134 -44%
Holding company and other (112) (149) nm
TOTAL 923 794 -14%
Net cash by business area Change
9-month
(EUR million) (EURm)
2010 2011
Bouygues Construction 2,905 2,393 -EUR512m
Bouygues Immobilier 93 275 +EUR182m
Colas (666) (823) -EUR157m
TF1 (9) 87 +EUR96m
Bouygues Telecom (339) (440) -EUR101m
Holding company and other (5,754) (5,300) +EUR454m
TOTAL (3,770) (3,808) -EUR38m
Contribution of business
areas to
Cash flow %
9-month change
(EUR million)
2010 2011
Bouygues Construction 375 400 +7%
Bouygues Immobilier 145 129 -11%
Colas 572 620 +8%
TF1 160 242 +51%
Bouygues Telecom 1,073 1,052 -2%
Holding company and other 103 40 nm
TOTAL 2,428 2,483 +2%
Contribution of business
areas to
Net capital expenditure Change
9-month
(EUR million) (EURm)
2010 2011
Bouygues Construction 145 177 +EUR32m
Bouygues Immobilier 3 7 +EUR4m
Colas 275 252 -EUR23m
TF1 35 29 -EUR6m
Bouygues Telecom 400 536 +EUR136m
Holding company and other 6 (4) -EUR10m
TOTAL 864 997 +EUR133m
Press contact: +33-(0)1-44-20-12-01 - presse at bouygues.com
Investors and analysts contact: +33-(0)1-44-20-10-79 - investors at bouygues.com
