Bouygues announces a loss in the first quarter and a high level of orders for the coming months

The company posted a net loss of 134 million euros over the first three months, for a turnover of 12 billion euros.

This net result, stable over one year, suffered from the seasonal nature of certain activities (roads), but also from the increase in the cost of debt, in connection with the acquisition from Engie of the technical services group Equans.

"As every year, the group's results in the first quarter are not representative of those of the year, mainly due to the seasonality of the activities of Colas, and to a lesser extent those of Equans", insists Bouygues.

With the integration of Equans, its turnover grew over one year by 46%, to 12 billion euros. At constant scope and exchange rates, it's +4%, fueled by commercial performance but also inflation.

Equans (4,4 billion euros in turnover) has an order book of 26,7 billion.

Revenue from construction activities reached 5,2 billion euros, up 5% year-on-year, with an order book of 29,4 billion offering "good visibility on future activity".

The quarter was marked by the signing of contracts for the Abidjan metro (approximately 770 million euros), Toulouse, for hospitals in the United Kingdom and Morocco. Same trend for Colas, particularly in the United States and in international rail activities.

On the other hand, Bouygues Immobilier suffered from the sluggishness of the real estate market in France, against a backdrop of inflation and rising interest rates. Its order book is down 20% compared to the first quarter of 2022.

“Corporate real estate was already in a wait-and-see mode since the Covid: companies do not yet know where the teleworking cursor will be,” Bouygues financial director Pascal Grangé told a few journalists.

In the residential sector, the banks have tightened their credit policy, and "uncertainty is slowing down investments", adds the leader, who nevertheless wants to be optimistic because in the long term "there will be a growing need for housing", assures- he.

In Poland, the group's other market in real estate, the balance sheet, on the other hand, is "very good", with demand linked in particular to migratory flows from Ukraine, according to Mr. Grangé.

The TF1 channel posted revenue of 480 million euros, or -14%, and net profit of -17,6% at 28,1 million euros, affected by the drop in advertising revenue.

As for Bouygues Telecom, it rose 8% to 1,9 billion, with an increase in fixed and mobile customers.

Overall, the group confirms its annual outlook. "In an unstable environment marked by inflation, rising interest rates and currency volatility", he expects turnover for 2023 close to that of 2022, and an increase in the current operating profit of his activities. .

For the group, inflation, also linked "to a cyclical imbalance between supply and demand", should in part be regulated over time. Its financial director cites the example of bitumen, the price of which "peaked in June, before falling back a little since".

And for the rest, Bouygues applies in the face of rising prices "a risk limitation policy", he says, in particular with "protective contracts" with customers or suppliers.