- Revenue: EUR26.5 billion, a 1% increase over last year.
- Current Operating Profit from Activities (COPA): EUR747 million, improved by EUR20 million over the last 12 months.
- Net Income Group Share: EUR186 million, down EUR39 million from last year.
- Net Debt: EUR8.7 billion, down from EUR10.6 billion last year, a significant improvement of EUR1.9 billion.
- Construction Backlog: EUR31 billion, providing good visibility for future business.
- Bouygues Construction Orders: EUR5.5 billion, with a 4% growth in backlog to EUR15.9 billion.
- Colas Orders: EUR7.2 billion, with a stable backlog at EUR14.1 billion.
- Equans Backlog: EUR26.5 billion, stable compared to end 2023.
- Equans Sales: EUR9.4 billion, up 2%.
- TF1 Sales: EUR1.1 billion, up 6%.
- TF1 Advertising Revenue: Up 7% over one year.
- Bouygues Telecom Contract Customers: 15.6 million, with an additional 76,000 customers in H1.
- Fixed ABPU: EUR33, up EUR2.5 over one year.
- Bouygues Telecom Sales Billed to Customers: Up 5% over one year.
- EBITDA after Leases: EUR959 million, up 3% over one year.
- Gross CapEx (excluding frequencies): EUR778 million.
- Net Cash Flow: EUR1.3 billion, a EUR200 million increase over the first half of 2023.
- Free Cash Flow Before Working Capital Requirements: EUR205 million, a significant improvement from EUR11 million in H1 2023.
- Group Liquidity: EUR13.6 billion, including EUR2.4 billion in cash and EUR11.1 billion in undrawn medium and long-term facilities.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bouygues (BOUYF, Financial) confirmed its 2024 outlook, expecting sales and current operating profit from activities to be slightly up compared to 2023.
- The construction backlog is at a very high level, providing good visibility for future business.
- Bouygues Telecom continues to show commercial dynamism in both fixed lines and mobile phones.
- The financial structure has improved significantly, with net debt reduced by EUR1.9 billion compared to the previous year.
- Sustainable initiatives, such as the partnership with the Solar Impulse Foundation, highlight Bouygues (BOUYF)'s commitment to environmental and energy transitions.
Negative Points
- Net income group share decreased by EUR39 million compared to the same period last year.
- Bouygues Immobilier is facing a very difficult market environment, with a 25% decline in backlog over the last 12 months.
- The current operating profit from activities (COPA) for the construction business stands at minus EUR21 million, reflecting seasonality and market challenges.
- Bouygues Telecom's mobile ABPU is stable but could decline by the end of 2024 due to a highly competitive market.
- Equans is undergoing a strategic shift, including pulling out of the New Build business in the UK, which may impact short-term revenue growth.
Q & A Highlights
Q: Regarding the macroeconomic and political context in France, might this have a consequence on public orders procurement for construction? What about the UK? And finally, Colas has seen a number of major projects not renewed. What's the outlook?
A: (Olivier Roussat, CEO) We have good backlogs with good visibility and do not see much concern. For the property market, it is down, but we assume it has hit rock bottom. In the UK, the Road business is low, but we are not particularly concerned. For Colas, the nonrenewal of contracts is mostly in North America.
Q: Regarding Bouygues Telecom EBITDA, is it the leases that are going up or the acquisition costs such as promotion?
A: (Benoît Torloting, CEO of Bouygues Telecom) Growth in sales is driven by the fixed line business, where we rent infrastructure, leading to lower variable margins. Additionally, there were costs associated with new launches and the treatment of unpaid invoices.
Q: Do we need to revisit the guidance for Bouygues Telecom due to changes in the price and cost environment?
A: (Benoît Torloting, CEO of Bouygues Telecom) We stand by our guidance for 2026, aiming for EUR600 million and EUR2.5 billion EBITDA. The model for fixed line might eventually adjust if we acquire facilities.
Q: Could you elaborate on the acquisition of La Poste Mobile?
A: (Olivier Roussat, CEO) We signed the deal in April '24, but there are differences between La Poste and SFR on the terms and conditions. We have submitted our offer to the Competition Authority, but the timetable is uncertain.
Q: How significant a driver are data centers in terms of the overall revenue mix of Equans?
A: (Jérôme Stubler, President of Equans) Data centers are a high-growth segment, particularly in England, France, and Italy. They represent a significant figure in our backlog, enabling good future growth.
Q: What are your expectations for the competitive environment in French Mobile?
A: (Benoît Torloting, CEO of Bouygues Telecom) The competitive environment has become increasingly competitive since Q2. We will need to continue adapting our offerings, which may lead to a decline in ABPU.
Q: Could you say a few words about what's happening in terms of order intake and the level of activity at Colas?
A: (Pierre Vanstoflegatte, CEO of Colas) The backlog is up by about 6% in France but down 19% in the USA due to nonrenewal of major contracts. Rail is booming, with significant contracts in Egypt and Grand Paris.
Q: Could you help us assess the impact of downsizing activity on Equans' growth?
A: (Jérôme Stubler, President of Equans) The exit from the New Build business in the UK will impact revenue by EUR115 million over a full year. We are phasing out this business as we complete existing contracts.
Q: Why did Bouygues Telecom need to respond to SFR's lower prices?
A: (Benoît Torloting, CEO of Bouygues Telecom) All competitors have been reducing prices. We need to strike the right balance between price and value, but we remain focused on value.
Q: Could you clarify Bouygues Telecom's guidance on EBITDA?
A: (Olivier Roussat, CEO) We have confirmed the guidance for 2024, aiming for EBITDA after Lease higher than EUR2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
