Bouygues wins orders in its core business and reorients its strategy with Equans

The conglomerate of construction, media and telecoms recorded in 2022 a net profit down 13,5% to 973 million euros, but operating profit increased by 16,38% to 2 billion euros.

Net profit is down because it is weighed down by 90 million euros in exceptional costs linked in particular to the costs of mergers and acquisitions operations concerning the huge takeover of the technical services group Equans from Engie last year, and to costs related to the wedding project between TF1 and M6, which was finally aborted in September.

These results should be compared to a favorable base in 2021 which included capital gains from the disposal of data centers and disposals of Alstom shares.

Despite the war in Ukraine, inflation and soaring interest rates, activity remained buoyant in almost all businesses.

Overall turnover rose by 18% to 44,3 billion euros, especially on the international scene (+34%).

“Growth is driven by the integration of Equans, by Colas and construction, and to a lesser extent by telecoms,” note Oddo analysts in a note.

Only Bouygues Immobilier saw its turnover fall (-4%), in a "generally wait-and-see" market, according to the group's press release.

The turnover of the "construction and services" division stood at 30,5 billion euros, up 9%, mainly driven by Colas.

At the end of December 2022, the order book for construction and services was "up 2% to 33,8 billion euros, a historic level", welcomed the group.

The construction branch recorded an increase in sales of 3% to 13,17 billion euros and offers "good visibility" with a "high level of order book" of 20,6 billion euros.

Equans integration

For the future, "in an unstable environment, marked by inflation, rising interest rates and currency volatility, Bouygues is targeting sales for 2023 close to that of 2022, and an increase in operating profit. of its activities (ROCA), "said the group with 196.000 employees.

On the Bouygues Telecom side, commercial activity "remained dynamic", with sales up 4% and the conquest of 449.000 new mobile customers and 674.000 in fiber (FTTH). In total, the mobile and fiber base has 19,9 million customers.

In the group's other showcase, TF1, net profit fell by 21,8% in 2022, to 176 million euros, despite a 3% increase in sales and good advertising performance during the FIFA World Cup. soccer. The year will have been tarnished by the failed marriage of TF1/M6 because of the concessions requested by the competition authority.

At 6,6 billion euros, the takeover of Equans and its 70.000 employees is the biggest takeover in the history of Bouygues. It "positions us in a new dynamic of growth", and "significant" commented Olivier Roussat, general manager of the group during the presentation of the results.

In 2022, Equans, integrated into the Bouygues Energies and Services branch in October, will have contributed 3,8 billion euros to overall turnover. Its annual turnover is around 13,8 billion.

Bouygues is aiming for "slight growth in its turnover in 2023 and 2024", before "accelerating" in 2025.

With technical services ranging from energy management in buildings to fire safety, including ventilation, air conditioning, heating and digital technology, this takeover should enable Bouygues to accelerate in the buoyant sector of consumer services. energetic transition.

Before the acquisition, the "construction and services" division weighed 75% in the group's activity (including 10% for services).

The integration of Equans moves "its center of gravity" towards an activity "much more oriented towards this subject of energies and services", underlined Mr. Roussat. A sector now expected to weigh for a third of the business portfolio (48% for construction alone), according to projections.