BOUYGUES: Results for the first nine months of 2016
Bouygues+0.37%
Paris, 16 November 2016
Bouygues press release
Results for the first nine months of 2016
|
Key figures (€ million) | 9-month 2015 | 9-month 2016 | Change |
Sales | 23,824 | 23,113 | -3%a |
Current operating profit | 597 | 714 | +20% |
Operating profit | 491b | 570b | +16% |
Net profit attributable to the Group | 334 | 345 | +3% |
Net profit attributable to the Group excl. exceptional items | 320c | 412c | +29% |
Net debt at 30 Septemberd | 4,883 | 3,890 | -€993m |
(a) Down 1% like-for-like and at constant exchange rates
(b) Including non-current charges of €106 million at Bouygues Telecom, TF1 and Bouygues Construction and Bouygues Immobilier in the first nine months of 2015 and non-current charges of €144 million in all businesses in the first nine months of 2016
(c) See reconciliation on page 10
(d) Net debt comprises an aggregate of cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments
The first nine months of 2016 showed a sharp rise in the Group's results, driven by the good performance of Bouygues Telecom, whose EBITDA margina improved by 3.4 points to 23.1% year-on-year.
- Current operating profit rose 20% to €714 million.
- Operating profit increased 16% to €570 million. This includes €144 million of non-current charges, essentially related to TF1 and Colas. Non-current charges in the first nine months of 2015 were €106 million.
- Net profit attributable to the Group grew 3% to €345 million. As a reminder, net profit attributable to the Group in the first nine months of 2015 notably included the impact of the sale of the stake in the A28 motorway concession company.
Excluding exceptional items (non-current charges and disposals), net profit attributable to the Group improved by 29% to €412 million.
(a) EBITDA/sales from network
Outlook
The good performance in the first nine months strengthens the prospect of an improvement in the Group's profitability in 2016 as announced in previous disclosures.
- Profitability in the construction businesses is expected to improve starting in 2016.
- In a tougher-than-expected economic environment, TF1 has revised downward the cost of programs at its five freeview channels and implemented an additional cost saving plan. TF1 is continuing to expand into content, accelerating its digital transformation and adapting its channels' business model.
- Bouygues Telecom confirmed its return to long-term sales and earnings growth, and maintains its EBITDA margin target of 25% for 2017 with a plan to save at least €400 million in 2016 versus
end-2013. Net capital expenditure is expected to reach around €800 million in 2016.
The Group's operating profit in 2016 will be affected by non-current charges of around €270 million, including the roll-out of network sharing with the SFR group and adaptation plans in the business segments, before taking into consideration non-current income related to the sale of towers by Bouygues Telecom.
Other information
Detailed analysis by sector of activity
Construction businessesa
The order book for the construction businesses remained at the high level of €28.1 billion at
end-September 2016, down 3% year-on-year and down 1% at constant exchange rates.
In France, the gradual stabilization of the construction market was confirmed in the first nine months of the year. The order book at end-September 2016 stood at €13.1 billion, up 1% year-on-year.
Residential property reservations at Bouygues Immobilier continued to grow strongly in the first nine months of 2016 (up 23% year-on-year) in a market boosted by historically low interest rates, the Pinel tax incentive and wider access to the zero-interest loan program.
Order intake at Bouygues Construction rose 12% in the first nine months of 2016 compared with the first nine months of 2015 following the signing of a number of major contracts since the start of the year, such as the Port of Calais extension, Tour Alto in La Défense and the renovation of the Louvre Post Office building in central Paris.
After two years of sharp decline, sales in Colas' roads business in mainland France stabilized compared with the first nine months of 2015.
In international markets, the order book at end-September 2016 stood at a high level (€15 billion, down 3% at constant exchange rates).
At Bouygues Construction, the order book does not yet include a certain number of significant contracts, notably in Northern Europe, Asia, the Middle East and Cuba, that should be finalized in the next few months. The projects in the pipelineb at end-September 2016 were therefore 28% higher year-on-year.
At Colas, the order book at end-September 2016 increased 3% (up 6% at constant exchange rates) despite delays in launching road and motorway programs in Central Europe and a decline in investment in Canada's oilproducing western provinces.
International business represented 58% of the order book at Bouygues Construction and Colas.
Sales in the construction businesses reached €18.2 billion in the first nine months of 2016, down 5% year-on-year. They were negatively impacted by a €280-million exchange rate effect and a €239-million scope effect, mostly at Colas due to the disposal of storage and bitumen sales activities in Asia to its Thai subsidiary Tasco, in which it has a 32% stake, and to the discontinuation of the refining activity in France. Like-for-like and at constant exchange rates, sales were down 2%.
Current operating profit in the first nine months of 2016 reached €568 million, up €49 million year-on-year. The improvement was mainly due to the discontinuation of activity at the Dunkirk refinery (SRD).
The current operating margin rose 0.4 points to 3.1%.
Operating profit was €512 million, up €8 million, including non-current charges of €56 million, of which €39 million at Colas due to the ongoing closure of the Dunkirk refinery.
- Bouygues Construction, Bouygues Immobilier and Colas
- Pipeline equals project amount times their signing probability for projects with a signing probability higher than 50%
TF1
Sales at TF1 in the first nine months of 2016 were €1,427 million, up 2% on the first nine months of 2015. The increase was due to the integration of Newen Studios, consolidated since 1 January 2016, while the group's advertising revenue declined 2%.
Current operating profit in the first nine months of 2016 was €47 million, down €60 million year-on-year, mainly due to the cost of screening Euro 2016 and the deconsolidation of Eurosport France in 2015, which had a
€34-million positive impact.
TF1 incurred an operating loss of €22 million in the first nine months of 2016, factoring in non-current charges of €69 million, which include transformation costs, the effects of LCI's migration to freeview, as well as the impacts of both Newen Studios and the decree on French drama.
Bouygues Telecom
Bouygues Telecom continued to report sales and earnings growth in the first nine months of 2016, driven by a good commercial performance.
The operator added 227,000 mobile customers in the third quarter of 2016 and 770,000 in the first nine months of the year to reach a total of 12.7 million customers at end-September 2016. The number of plan customers excluding MtoMa rose by 129,000 in the third quarter of 2016.
4G penetration within Bouygues Telecom's customer base continued, with 6.5 million 4G usersb at endSeptember 2016, representing 62% of the mobile base excluding MtoM. The growth of 4G was driven by a sharp increase in mobile data usage: 4G customers' average data consumptionc was 3.7 GB in September 2016, compared with 2.3 GB in September 2015.
In the fixed market, Bouygues Telecom continues to win customers and strengthens its position in households. The operator added 215,000 new customers in the first nine months of 2016, including 93,000 in the third quarter, to reach a total of over 3 million customers at end-September 2016. Bouygues Telecom now has 448,000
Very-High-Speedd customers, including 91,000 FTTHe customers. In the third quarter of 2016, 70% of Bouygues Telecom's fixed households are convergent, having at least one mobile line in addition to the fixed offer.
Bouygues Telecom's sales reached €3,503 million in the first nine months of 2016, up 6% year-on-year.
Sales from network increased for the fifth consecutive quarter, rising 7% in the third quarter of 2016.
Sales from mobile network grew for the third consecutive quarter, up 6% in the third quarter of 2016.
EBITDA in the first nine months of 2016 improved 23% to €697 million. The EBITDA margin rose 3.4 points to 23.1%.
Current operating profit at end-September 2016 was €124 million compared with a loss of €9 million at end-September 2015, representing an increase of €133 million.
Operating profit was €117 million after non-current charges of €65 million, essentially related to the roll-out of network sharing with the SFR group, and a capital gain of €56 million on the sale of 230 towers to Cellnex.
(a) Machine-to-Machine
(b) Customers having used the 4G network during the last three months (Arcep definition)
(c) Data consumed on 4G cellular networks, excluding Wi-Fi
(d) Subscriptions with a peak download speed higher or equal to 30 Mbit/s. Includes FTTH, FTTLA and VDSL2 subscriptions (Arcep definition)
(e) Fiber To The Home - roll-out of optical fiber from the optical access node (place where the operator's transmission equipment is installed) to homes or business premises (Arcep definition)
Alstom
As announced on 9 November 2016, Alstom's contribution to Bouygues' net profit in the first nine months of 2016 was €36 million, after a contribution of €0 million in first-half 2016.
Financial situation
Net debt at end-September 2016 was €3.9 billion, an improvement of €993 million on end-September 2015. In 2016, net debt notably benefits from the impact of the Alstom public share buy-back offer (+€996 million) and includes the acquisition of Newen Studios (-€293 million at 100%) and the first installment of 700 MHz frequencies (-€117 million).
Net debt was higher than at 31 December 2015 due to the usual seasonal effects of the businesses and the dividend payments (-€655 million).
Highlights since 30 June 2016
- 31 August 2016: Bouygues Construction started work on the €842-million first tranche of the 6-hectare offshore extension project in Monaco.
- 26 September 2016: Laying of the foundation stone of the Port of Calais extension in the presence of the President of France.
- 26 October 2016: The Bouygues group is recognized for its action in favor of the climate and is added to CDP's Climate A List.
- 9 November 2016: Bouygues sold a 46.1% stake in Adelac, the concession company of the A41 Annecy North-Geneva motorway, to Eiffage for €130 million.
Financial calendar
23 February 2017: Full-year 2016 results (7.30am CET)
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. |
Press contact: +33 (0)1 44 20 12 01 presse@bouygues.com | Investors and analysts contact: +33 (0)1 44 20 10 79 investors@bouygues.com |
9-month 2016 business activity
Order book at the construction businesses (€ million) | End-September | ||
2015 | 2016 | % change | |
Bouygues Construction | 19,681 | 18,225 | -7% |
Bouygues Immobilier | 2,274 | 2,722 | +20% |
Colas | 7,083 | 7,178 | +1% |
TOTAL | 29,038 | 28,125 | -3% |
Bouygues Construction order intake (€ million) | 9-month | % change | |
2015 | 2016 | ||
France | 3,407 | 3,802 | +12% |
International | 5,705 | 3,841 | -33% |
TOTAL | 9,112 | 7,643 | -16% |
Bouygues Immobilier reservations (€ million) | 9-month | % change | |
2015 | 2016 | ||
Residential property | 1,184 | 1,443 | +22% |
Commercial property | 191 | 231 | +21% |
TOTAL | 1,375 | 1,674 | +22% |
Colas order book (€ million) | End-September | % change | |
2015 | 2016 | ||
Mainland France | 2,901 | 2,876 | -1% |
International and French overseas territories | 4,182 | 4,302 | +3% |
TOTAL | 7,083 | 7,178 | +1% |
TF1 audience sharea | 9-month | Pts change | |
2015 | 2016 | ||
TF1 | 21.3% | 20.4% | -0.9 pts |
TMC | 3.1% | 2.8% | -0.3 pts |
NT1 | 2.0% | 1.9% | -0.1 pts |
HD1 LCI | 1.2% nm | 1.7% 0.2% | +0.5 pts |
nm | |||
TOTAL | 27.6% | 27.0% | -0.6 pts |
(a) Source: Médiamétrie - Individuals aged 4 and over
Bouygues Telecom customer base ('000 customers) | End-June 2016 | End-September 2016 | Change ('000 customers) |
Plan subscribers | 11,472 | 11,716 | +244 |
Prepaid customers | 961 | 944 | -17 |
Total mobile customers | 12,433 | 12,660 | +227 |
Total fixed customers | 2,910 | 3,003 | +93 |
9-month 2016 financial performance
Condensed consolidated income statement (€ million) | 9-month | Change | |
2015 | 2016 | ||
Sales | 23,824 | 23,113 | -3%a |
Current operating profit | 597 | 714 | +20% |
Other operating income and expenses | (106)b | (144)b | +36% |
Operating profit | 491 | 570 | +16% |
Cost of net debt | (210) | (171) | -19% |
Other financial income and expenses | 23 | 3 | -87% |
Income tax | (82) | (138) | +68% |
Share of net profits of joint ventures and associates | 159c | 91 | -43% |
o/w Alstom | 0d | 36 | nm |
Net profit | 381 | 355 | -7% |
Net profit attributable to non-controlling interests | (47) | (10) | nm |
Net profit attributable to the Group | 334 | 345 | +3% |
Net profit attributable to the Group excl. exceptional items | 320e | 412e | +29% |
(a) Down 1% like-for-like and at constant exchange rates
(b) Non-current charges at Bouygues Telecom, TF1, Bouygues Construction and Bouygues Immobilier in the first nine months of 2015 and non-current charges in all Group business segments in the first nine months of 2016
(c) Including the impact of the sale of Bouygues Construction's stake in the A28 motorway concession company
(d) Alstom's contribution of -€301 million to Bouygues' net profit, a negative impact of €9 million for the amortization of fair value remeasurements of identifiable intangible assets and other items, and a partial reversal for €310 million of the write-down against Bouygues' interest in Alstom recognized in 2013
(e) See reconciliation on page 10
Calculation of EBITDA (€ million) | 9-month | Change | |
2015 | 2016 | ||
Current operating profit | 597 | 714 | +€117m |
Net depreciation and amortization expense | 1,076 | 1,144 | +€68m |
Net charges to provisions and impairment losses | 81 | 127 | +€46m |
Reversals of unutilized provisions and impairment losses | (219) | (234) | -€15m |
EBITDA | 1,535 | 1,751 | +€216m |
Third-quarter consolidated income statement (€ million) | Third-quarter | Change | |
2015 | 2016 | ||
Sales | 8,726 | 8,444 | -3% |
Current operating profit | 478 | 508 | +6% |
Operating profit | 446a | 513a | +15% |
Net profit attributable to the Group | 376 | 373 | -1% |
(a) Including non-current charges of €32 million at Bouygues Telecom, TF1, Bouygues Construction and Bouygues Immobilier in Q3 2015 and non-current income of €5 million in Q3 2016, which factors in non-current income of €36 million at Bouygues Telecom (non-current income of €59 million and non-current charges of €23 million) and non-current charges of €31 million at Bouygues Construction, Colas and TF1
Sales by sector of activity (€ million) | 9-month | % change | Change l-f-l and at constant exchange rates | |
2015 | 2016 | |||
Construction businessesa | 19,134 | 18,219 | -5% | -2% |
o/w Bouygues Construction | 8,826 | 8,698 | -1% | 0% |
o/w Bouygues Immobilier | 1,569 | 1,626 | +4% | +3% |
o/w Colas | 8,933 | 8,115 | -9% | -5% |
TF1 | 1,400 | 1,427 | +2% | -4% |
Bouygues Telecom | 3,319 | 3,503 | +6% | +6% |
Holding company and other | 105 | 101 | nm | nm |
Intra-Group elimination | (328) | (357) | nm | nm |
TOTAL | 23,824 | 23,113 | -3% | -1% |
o/w France | 14,650 | 14,520 | -1% | -1% |
o/w international | 9,174 | 8,593 | -6% | -1% |
(a) Total of the sales contributions (after eliminations within the construction businesses)
Contribution to EBITDAa by sector of activity (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 872 | 891 | +€19m |
o/w Bouygues Construction | 324 | 335 | +€11m |
o/w Bouygues Immobilier | 67 | 68 | +€1m |
o/w Colas | 481 | 488 | +€7m |
TF1 | 117 | 193 | +€76m |
Bouygues Telecom | 565 | 697 | +€132m |
Holding company and other | (19) | (30) | -€11m |
TOTAL | 1,535 | 1,751 | +€216m |
(a) EBITDA = current operating profit + net depreciation and amortization expense + net provisions and impairment losses - reversals of unutilized provisions and impairment losses
Contribution to current operating profit by sector of activity (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 519 | 568 | +€49m |
o/w Bouygues Construction | 235 | 235 | €0m |
o/w Bouygues Immobilier | 89 | 92 | +€3m |
o/w Colas | 195 | 241 | +€46m |
TF1 | 107 | 47 | -€60m |
Bouygues Telecom | (9) | 124 | +€133m |
Holding company and other | (20) | (25) | -€5m |
TOTAL | 597 | 714 | +€117m |
Contribution to operating profit by sector of activity (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 504 | 512 | +€8m |
o/w Bouygues Construction | 223a | 220a | -€3m |
o/w Bouygues Immobilier | 86a | 90a | +€4m |
o/w Colas | 195 | 202b | +€7m |
TF1 | 92c | (22)c | -€114m |
Bouygues Telecom | (85)d | 117d | +€202m |
Holding company and other | (20) | (37) | -€17m |
TOTAL | 491 | 570 | +€79m |
(a) Including non-current charges of €12 million in the first nine months of 2015 and of €15 million in the first nine months of 2016 at Bouygues Construction and of €3 million in the first nine months of 2015 and of €2 million in the first nine months of 2016 at Bouygues Immobilier related to the implementation of their new organizations
(b) Including non-current charges of €39 million related to the discontinuation of activity at the SRD subsidiary in Dunkirk
(c) Including non-current charges of €15 million in the first nine months of 2015 related to the new organization and of €69 million in the first nine months of 2016, which include transformation costs, the effects of LCI's migration to freeview and the impacts of both Newen Studios and the decree on French drama
(d) Including non-current charges of €76 million in the first nine months of 2015 essentially related to the roll-out of network sharing with SFR and of €7 million in the first nine months of 2016 essentially related to a capital gain of €56 million on the sale of 230 towers to Cellnex and to non-current charges of €65 million mainly related to the roll-out of network sharing with SFR
Contribution to net profit attributable to the Group by sector of activity (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 471 | 379 | -€92m |
o/w Bouygues Construction | 243 | 165 | -€78m |
o/w Bouygues Immobilier | 46 | 53 | +€7m |
o/w Colas | 182 | 161 | -€21m |
TF1 | 28 | (6) | -€34m |
Bouygues Telecom | (50) | 57 | +€107m |
Alstom | 0a | 36 | +€36m |
Holding company and other | (115) | (121) | -€6m |
Net profit attributable to the Group | 334 | 345 | +€11m |
Net profit attributable to the Group excl. exceptional items | 320b | 412b | +€92m |
(a) Alstom's contribution of -€301 million to Bouygues' net profit, a negative impact of €9 million for the amortization of fair value remeasurements of identifiable intangible assets and other items, and a partial reversal for €310 million of the write-down against Bouygues' interest in Alstom recognized in 2013
(b) See reconciliation below
Impacts of exceptional items on net profit attributable to the Group (€ million) | 9-month | Change | |
2015 | 2016 | ||
Net profit attributable to the Group | 334 | 345 | +€11m |
non-current income/charges related to Bouygues Telecom (net of taxes) | 43 | 4 | -€39m |
non-current income/charges related to the construction businesses (net of taxes) | 9 | 36 | +€27m |
non-current income/charges related to TF1 (net of taxes) | 4 | 19 | +€15m |
non-current income/charges related to Holding company (net of taxes) | - | 8 | +€8m |
associates of Bouygues Construction (A28 motorway, etc.) | (70) | - | +€70m |
Net profit attributable to the Group excl. exceptional items | 320 | 412 | +€92m |
Net cash by business segment (€ million) | At end-September | Change | |
2015 | 2016 | ||
Bouygues Construction | 2,642 | 2,758 | +€116m |
Bouygues Immobilier | (188) | (274) | -€86m |
Colas | (231) | (17) | +€214m |
TF1 | 235 | 148a | -€87m |
Bouygues Telecom | (1,012) | (1,123)b | -€111m |
Holding company and other | (6,329) | (5,382)c | +€947m |
TOTAL | (4,883) | (3,890) | +€993m |
(a) Including the acquisition of Newen Studios for €293 million at 100%
(b) Including the first installment for the 700 MHz frequencies for €117 million and proceeds related to the disposal of 230 towers to Cellnex for €80 million
(c) Including the impact of Alstom's public share buy-back offer in January 2016 for €996 million
Contribution to net capital expenditure by sector of activity (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 281 | 320 | +€39m |
o/w Bouygues Construction | 130 | 127 | -€3m |
o/w Bouygues Immobilier | 10 | 17 | +€7m |
o/w Colas | 141 | 176 | +€35m |
TF1 | 29 | 147 | +€118m |
Bouygues Telecom | 571 | 605 | +€34m |
Holding company and other | 0 | 3 | +€3m |
TOTAL | 881 | 1,075 | +€194m |
Contribution to free cash flowa by sector of activity before change in working capital requirement (€ million) | 9-month | Change | |
2015 | 2016 | ||
Construction businesses | 424 | 432 | +€8m |
o/w Bouygues Construction | 133 | 161 | +€28m |
o/w Bouygues Immobilier | 32 | 34 | +€2m |
o/w Colas | 259 | 237 | -€22m |
TF1 | 50 | (5) | -€55m |
Bouygues Telecom | (24) | 24 | +€48m |
Holding company and other | (135) | (115) | +€20m |
TOTAL | 315 | 336 | +€21m |
(a) Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: BOUYGUES via Globenewswire
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