Bouygues continued to show a solid commercial performance in its Construction and Telecommunication businesses during the first three months of 2005. Group profitability improved: operating profit increased by 15% and net profit attributable to the Group by 41%.
2005 first-quarter earnings are presented in compliance with the new IFRS standards applicable since 1 January 2005. 2004 first-quarter earnings have been restated in accordance with these standards to allow for comparison with 2005 figures.
Key figures
in millions
- Sales 4,848 (2004: 4,688, +3%)
- Comparable sales figure 4,848 (2004: 4,551, +7%)
- Operating profit 255 (2004: 222, +15%)
- Net profit attributable to the Group 96 (2004: 68, +41%)
- Cash flow 516 (497, +4%)
- Net debt 3,176 (2004: 3,367, -6%)
Bouygues Construction enjoyed strong sales growth in the first quarter of 2005, winning several important projects in buoyant sectors. Profitability continued to increase.
Bouygues Immobilier continued to grow, increasing its net profit by 19% to 19 million, in a firm housing market.
Colas maintained its full-year sales and profitability targets despite worse weather conditions in the first quarter of 2005 than in the same period a year ago.
TF1 sales were flat. Net profit was down due to a non-recurrent increase in programming costs.
Bouygues Telecom reported sales of 1,074 million and net sales from network of 1,013 million - a 30% increase due mainly to mobile-to-mobile billing (157 million) effective since 1 January 2005. If this system had been implemented in 2004, the increase in net sales from network would have been 9%.
Commercial activity was brisk. In May, the mobile operator launched high-speed services for businesses and professionals on its national EDGE network, covering 85% of the French population.
Bouygues Telecom generated EBITDA* of 334 million in the first quarter of 2005, up 16% on the same period in 2004. Operating profit rose 30% to 168 million and net profit 52% to 102 million.
* As from 1 January 2005, EBITDA was calculated in the same way throughout the Bouygues group: operating profit + net depreciation and amortisation + net provisions.
Motorway privatisation
Bouygues has taken note of the French government's intention to privatise state-controlled motorways and is considering the topic. The Group will take a decision in accordance with the conditions set by the government.
Bouygues stake in Bouygues Telecom
The BNP Paribas group wished to make liquid its 6.5% stake in Bouygues Telecom. As a result, Bouygues has granted BNP Paribas an option to sell the stake, exercisable at any time from 1 September 2005 to 31 July 2007, for between 477 million and 495 million according to the date on which the option is exercised. In return, BNP Paribas has granted Bouygues an option to buy, exercisable between 1 and 30 September 2007, at the price of 497 million. If the amount of the dividends paid by Bouygues Telecom to the BNP Paribas Group exceeds an aggregate total of 4.6 million, it will be deducted from the above prices.
Share cancellation
The Board decided to cancel 1,048,873 of the Group's outstanding shares. There are currently 332,511,178 shares and investment certificates outstanding.
Based on business indicators and Group sales in the first quarter of the year, Bouygues has set the sales target for 2005 at 23.1 billion, up from 22.7 billion announced on 2 March 2005.
Source: Bouygues
