BOUYGUES : BOUYGUES : First-half 2013 results Paris, 28 August 2013 Bouygues press release First-half 2013 *Good commercial performance in construction businesses *Adaptation plans producing the expected results *Improvement in the Group's profitability in the second quarter Key figures (€ million) Q1 Change Q2 Change H1 Change 2013 vs. 2012 2013 vs. 2012 2013 vs. 2012 Sales 6,698 -4% 8,509 = 15,207 -2% Current operating (76) -€158m 432 +€38m 356 -€120m profit/(loss) Net profit/(loss) (42) -€77m 230 -€13m 188 -€90m attributable to the Group Net debt (end of period) 5,007 -€317m 5,758 -€457m 5,758 -€457m The Bouygues group's construction businesses posted a good commercial performance in the first half of 2013, while TF1 and Bouygues Telecom showed resilience in a highly competitive environment. Adaptation plans are producing the expected results and the Group's profitability improved in the second quarter. The Bouygues group reported consolidated sales of €15.2billion in the first half of 2013, down 2% year-on-year. Current operating profit amounted to €356million, down €120million on the first half of 2012, and net profit to €188million, down €90million on the first half of 2012. These figures are still impacted by the decline in profitability in the first quarter of 2013 and are not indicative of the Group's expected full-year performance. Good commercial performance in the construction businesses In a still-challenging economic environment, especially in Europe, order books continued to run at a high level, standing at €27.3billion. This figure is down €1.3billion, or 5%, on end-June 2012 but up €2billion, or 8%, on end-June 2011 and does not yet include a number of recent major contracts, notably the Tuen Mun-Chek Lap Kok tunnel in Hong Kong, worth €1.15billion. This resilience of order books is the result of a strong and selective presence on international markets and recognised know-how in complex projects. At Bouygues Construction, order intake amounted to €5.1billion in the first half of 2013, compared with €6.9billion in the first half of 2012, a figure which included €2.1billion from major contracts worth more than €600million^1 each. The order book at end-June 2013 stood at €16.9billion, giving good visibility for future activity. At Bouygues Immobilier, first-half residential property reservations rose 3% year-on-year to €752million in a market expected to shrink in 2013. In a sluggish market, commercial property reservations amounted to €203million in the first half of the year. The order book at end-June 2013 stood at €2.8billion, representing 14months of sales. At Colas, the order book at end-June 2013 stood at €7.6billion and does not yet include the project for Morocco's first high-speed rail line, worth €124million. The order book remains at a high level and gives good visibility for the second half of the year. ^1^Paris law courts complex (€823 million), Nîmes-Montpellier railway bypass (€683million), Hong Kong-Zhuhai-Macao bridge (€607million) TF1 and Bouygues Telecom showed resilience in a highly competitive environment TF1's four freeview channels achieved an audience share of 29.0%^1 in the first six months of 2013, a year-on-year improvement of 0.6points. The TF1 TV channel took 22.9% of the audience, 0.2points better than in the first half of 2012. In an expanded freeview TV market which now numbers 25 channels, TF1 was the only major broadcaster to improve its audience share. At Bouygues Telecom, B&YOU continued to grow, gaining 523,000new customers in the first half of 2013 to give a base of 1,601,000customers at end-June 2013. The plan subscriber base increased by 374,000 new customers, bringing the total base to 9,802,000. The total mobile customer base stabilised at 11,286,000at end-June 2013. On the fixed broadband market, Bouygues Telecom gained 55,000new customers in the first half of 2013 to give a total of 1.9 millioncustomers^2. ^1 Target audience: individuals aged four years and over. Source: Médiamétrie ^2 Includes fixed broadband and very-high-speed subscriptions Adaptation plans are producing the expected results The Bouygues group is continuing to implement adaptation plans in its various business areas. These efforts are bearing fruit, enabling the Group to improve its profitability in the second quarter of 2013. TF1 has achieved €31million of recurrent savings since 30 June 2012, out of a planned €85million by the end of 2014 under phase II of its optimisation plan. At Bouygues Telecom, the far-reaching transformation under way since early 2012 has been stepped up in 2013. The company has embarked on an overhaul of its business model in order to cope with market upheaval. With a change in the way plans are marketed and a reduction in operating costs, overall costs in the mobile business in the first half of 2013 were €282million lower than in the first half of 2011. Total savings of €339million have been made on mobile costs since the end of 2011. The transformation plan target of €400million will therefore be exceeded. Bouygues Telecom is also repositioning its products and services in order to differentiate the company from its competitors and revitalise growth. The launch of 4G on 1October offers the company a very good opportunity to retake the leadership in terms of innovation on the mobile market. The Group's profitability improved in the second quarter Current operating profit/(loss) Q1 Change Q2 Change H1 Change (€ million) 2013 vs. 2012 2013 vs. 2012 2013 vs. 2012 Construction businesses^1 (79) -€7m 289 +€5m 210 -€2m TF1 (16) -€72m 87 +€9m 71 -€63m Bouygues Telecom 28 -€79m 63 +€22m 91 -€57m Group total (76) -€158m 432 +€38m 356 -€120m ^1 Bouygues Construction, Bouygues Immobilier and Colas The construction businesses posted a robust financial performance in the first half of 2013, reporting consolidated sales of €11.7billion, up 2% on the first half of 2012, and a current operating profit of €210million, virtually the same as a year earlier. Bouygues Construction reported operating profit of €202million in the first half of 2013, up €39million on the first half of 2012, reflecting good execution of ongoing projects. Operating profit at Bouygues Immobilier was stable at €84million. In the first half of 2013, the decline in the operating margin was limited to 0.5points at 7.3% thanks to the adaptation measures taken in 2012. Colas reported an operating loss of €76million in the first half of 2013, €42million more than in the first half of 2012, mainly due to very unfavourable weather conditions in the first half, especially in mainland France and North America. TF1 reported sales of €1.2billion in the first half of 2013, down 7%, and operating profit of €71million, €63million down on the first half of 2012. Current operating profit rose by €9million in the second quarter of 2013 despite a €30-million drop in sales, giving an operating margin of 13.5% against 11.6% in the second quarter of 2012, a year-on-year improvement of 1.9points. Bouygues Telecom reported total sales of €2,287million in the first half of 2013, down 15% on the first half of 2012, and sales from network of €2,113million, down 11%. The greater-than-expected fall in sales was due to a moderate commercial performance and the growing share of SIM-only sales. Thanks to the effectiveness of the savings plan and a reduction in marketing costs, EBITDA amounted to €257million in the second quarter of 2013 and fell by only €6million in relation to 2012. It reached €469million in the first half of 2013, down €90million on the previous year. Financial position Group free cash flow^1 in the first half of 2013 amounted to €152million, down €258million on the first half of 2012. The decline reflects the lower results and the postponement of Alstom's general meeting, which approves the dividend, from 26June in 2012 to 2July in 2013. The Group's net capital expenditure² in the first half of 2013 amounted to €596million, equivalent to the level in 2012. Net debt amounted to €5.8billion at end-June 2013, down €457million in relation to end-June 2012. This is due to tight control of net debt despite the fall in first-half results and asset disposals^3 at end-2012 of €426million. Net gearing improved by six points to 60%. The Group has a high level of liquidity (€6.9billion) after the redemption of a €709-million bond issue in May 2013. ^1 Before the change in working capital requirement. Excluding the impact of 4G frequencies ² Excluding the impact of 4G frequencies ^3 Disposal of 20% stake in Eurosport and the theme channels at TF1 as well as divestment of tower business and 3 data centres at Bouygues Telecom Outlook Bouygues Telecom has revised its sales target for 2013 downwards from the previously announced €4.85billion to €4.6billion in order to take account of strong growth in SIM-only sales and a moderate commercial performance in the first half of 2013. Order books in the construction businesses secure their sales targets for 2013. Depending on final sales figure of the construction businesses, the Group's consolidated sales could range between €33.2billion, down 1% on 2012, and €33.4billion, stable in relation to 2012. The Group's business areas are continuing to implement their adaptation plans. Thanks to the effectiveness of its transformation plan, Bouygues Telecom is able to confirm its objective for 2013 of stabilising EBITDA at €900million and improving its "EBITDA minus Capex" item. In keeping with the second quarter of 2013, profitability should improve in the second half of 2013, meaning that 2012 should mark the low point in the Bouygues group's profitability. Financial calendar 13 November 2013: nine-month 2013 sales and earnings, 5.45pm (CET) You will 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 available on www.bouygues.com. The first-half results presentation to financial analysts will be webcast live on 28 August 2013 at 11am on www.bouygues.com. Press contact: Investors and analysts contact: +33 (0)1 44 20 12 01 - +33 (0)1 44 20 10 79 - firstname.lastname@example.org email@example.com www.bouygues.com Condensedconsolidatedincome statement First half % (€ million) 2012 2013 change Sales 15,505 15,207 -2% Current operating profit 476 356 -25% Other operating income and expenses 0 0 nm Operating profit 476 356 -25% Cost of net debt (142) (157) +11% Other financial income and expenses 8 (7) nm Income tax expense (130) (102) -22% Share of profits and losses from associates 131 134 +2% Net profit 343 224 -35% Net profit/(loss) attributable to non-controlling (65) (36) nm interests^1 Net profit attributable to the Group 278 188 -32% ^1 Formerly "Minority interests" First-quarter consolidated First quarter % income statement change (€ million) 2012 2013 Sales 6,985 6,698 -4% Operating profit/(loss) 82 (76) nm Net profit/(loss) attributable to the Group 35 (42) nm Second-quarter consolidated Second quarter % income statement change (€million) 2012 2013 Sales 8,520 8,509 = Operating profit 394 432 +10% Net profit attributable to the Group 243 230 -5% Order books at the At end-June construction businesses (€ million) 2011 2012 2013 Bouygues Construction 15,538 17,650 16,877 Bouygues Immobilier 2,537 3,060 2,815 Colas 7,228 7,856 7,570 TOTAL 25,303 28,566 27,262 Salesbybusiness area First half % Change (€ million) change like-for-like and at 2012 2013 constant exchange rates Bouygues Construction 5,028 5,232 +4% +3% Bouygues Immobilier 1,066 1,143 +7% +7% Colas 5,594 5,560 -1% -1% TF1 1,301 1,208 -7% -7% Bouygues Telecom 2,676 2,287 -15% -14% Holding company and other 68 62 nm nm Intra-Group elimination (228) (285) nm nm Total 15,505 15,207 -2% -2% o/w France 10,730 10,493 -2% -2% o/w international 4,775 4,714 -1% -3% Contribution of business areas to EBITDA First half % (€ million) 2012 2013 change Bouygues Construction 268 239 -11% Bouygues Immobilier 69 88 +28% Colas 131 74 -44% TF1 174 92 -47% Bouygues Telecom 559 469 -16% Holding company and other (21) (17) nm TOTAL 1,180 945 -20% Contribution of business areas to currentoperating profit First half % (€ million) 2012 2013 change Bouygues Construction 163 202 +24% Bouygues Immobilier 83 84 +1% Colas (34) (76) nm TF1 134 71 -47% Bouygues Telecom 148 91 -39% Holding company and other (18) (16) nm TOTAL 476 356 -25% Contribution of business areas to netprofit attributable First half % to the Group change (€ million) 2012 2013 Bouygues Construction 107 131 +22% Bouygues Immobilier 51 45 -12% Colas (18) (31) nm TF1 41 18 -56% Bouygues Telecom 83 49 -41% Alstom 114 117 +3% Holding company and other (100) (141) nm TOTAL 278 188 -32% Netcash by businessarea At end-June Change (€ million) 2012 2013 €m Bouygues Construction 2,531 2,845 +€314m Bouygues Immobilier 305 239 -€66m Colas (1,074) (1,142) -€68m TF1 (91) 166 +€257m Bouygues Telecom (1,462) (774) +€688m Holding company and other (6,424) (7,092) -€668m TOTAL (6,215) (5,758) +€457m Contribution of business areas to First half free cash flow^1 Change Before change in working capital requirement (€ 2012 2013 €m million) Bouygues Construction 123 181 +€58m Bouygues Immobilier 48 53 +€5m Colas 53 8 -€45m TF1 107 60 -€47m Bouygues Telecom 90^(2) (22)^3 -€112m Holding company and other (11)^2 (128)^3 -€117m TOTAL 410^(2) 152^(3) -€258m ^1 Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure Contribution of business areas to First half Change net capital expenditure €m (€ million) 2012 2013 Bouygues Construction 80 55 -€25m Bouygues Immobilier 6 4 -€2m Colas 125 112 -€13m TF1 13 17 +€4m Bouygues Telecom 366^(2) 407^(3) +€41m Holding company and other 2^(2) 1^(3) -€1m TOTAL EXCL.4G FREQUENCIES 592^(2) 596^(3) +€4m 4G FREQUENCIES 704 21 -€683m TOTAL 1,296 617 -€679m ^2 Excluding acquisition cost and capitalised interest related to 4G frequencies for €704 million at Group level (for €687million at Bouygues Telecom level and €17million at holding company level) ^3 Excluding capitalised interest related to 4G frequencies for €21 million at Group level (for €8million at Bouygues Telecom level and €13million at holding company level) Sales target by business 2013 area Actual target % (€ million) 2012 Reported in Reported in Reported in change February May August Bouygues Construction 10,640 10,700 10,750 10,750 +1% Bouygues Immobilier 2,396 2,500 2,500 2,500 +4% Colas 13,036 13,200 13,200 13,200 +1% TF1 2,621 2,540 2,500 2,500 -5% Bouygues Telecom 5,226 4,850 4,850 4,600 -12% Holding company and other 123 120 120 120 nm Intra-Group elimination (495) (460) (470) (470) nm TOTAL 33,547 33,450 33,450 33,200 -1% The Group's consolidated sales could range between €33.2 billion (-1% vs. 2012) and €33.4billion (flat vs. 2012) depending on the final sales figure of the construction businesses. Bouygues press release of 28 August 2013 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: BOUYGUES via Thomson Reuters ONE HUG#1725109
BOUYGUES : BOUYGUES : First-half 2013 results
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