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BOUYGUES : BOUYGUES : First-half 2013 results

                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 -
         presse@bouygues.com                   investors@bouygues.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

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Source: BOUYGUES via Thomson Reuters ONE
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