Net profit of 408 million euros for Bouygues in the 1st half which raises its outlook for 2021

The group had suffered a net loss of 244 million euros during the first six months of last year, strongly disrupted by the Covid-19.

In the first half of 2021, net profit is well above its 2019 level, when it stood at 225 million euros. Turnover also rose to its pre-crisis level, with 17,4 billion euros, up 18% compared to last year.

The activities "have not been called into question by the pandemic, [the] market prospects are promising in the medium to long term" assured Olivier Roussat, general manager, quoted in the press release.

The group highlights "excellent half-year results" in an environment still affected by the pandemic.

All of the group's sectors benefited from the rebound in economic activity in 2021.

Growth in construction activities was driven by France (+ 35%) to stand at 12,8 billion euros.

For TF1, revenues increased by 28% over one year. Regarding the merger project between the channel and M6, "the Bouygues and RTL groups signed the agreements relating to the merger project at the beginning of July", a "first step".

Bouygues also specifies that "Alstom's contribution to the group's net income for the first half of 2021 amounts to 219 million euros".

In 2019 and 2020, Alstom's contribution to the results was respectively 33 and 35 million euros. Bouygues now only owns "0,16% of the share capital" of the railway manufacturer, against 15% in February 2020.

In terms of outlook, the group now believes that "turnover and current operating income should be very close to the level of 2019", a threshold that it did not expect to reach at the start of the year.

Alstom and telecoms build Bouygues' rebound in the first half of the year

The French construction giant Bouygues experienced a high level of profits in the first half of the year, at 408 million euros, driven by its performance in telecoms as well as by the sale of most of its Alstom shares, a-t he announced Thursday.

The group had suffered a net loss of 244 million euros during the first six months of last year, strongly disrupted by the Covid-19.

In 2021, its turnover, at 17,4 billion euros, and its operating margin, at 2,7%, returned to their 2019 level.

The group has also revised upwards its 2021 outlook, now estimating that "turnover and current operating income should be very close to the level of 2019", a threshold that it did not expect to reach at the start of the year.

Alstom departure gift

The level of profits is even much higher than that of 2019 (225 million), thanks to Alstom.

During the first half of the year, Bouygues finalized the sale of its shares in the railway manufacturer, in March and then June. These transactions contributed € 219 million to net results for the first half, compared to € 33 million in 2019.

Bouygues now only owns "0,16% of the share capital" of Alstom, against 15% in February 2020.

Telecoms also confirmed their good commercial momentum. The contribution of the Bouygues Telecom subsidiary to net income amounted to € 199 million.

The operator has confirmed that it wants to achieve "national coverage", that is to say "at least 60% of the population" on 5G, even if "for the moment, there is no great enthusiasm as there was for 4G, "said Olivier Roussat, CEO of the Bouygues group during a press conference.

Bouygues Telecom continues to step up its efforts in fiber and in the expansion of 4G to rural areas not yet served.

It now has 14,5 million mobile subscribers, with 258.000 new customers over the quarter, and 1,9 million end-to-end fiber subscribers, a gain of 346.000 new customers over the half-year.

Construction goes green again

Construction activities are back, timidly in the green, with a contribution of five million to the net profit of the entire group. In 2020, the pandemic and the shutdown of the economy had generated a loss of 384 million euros in this branch.

The company has confirmed its outlook in the construction branch, but now expects "more limited growth" in real estate.

Conversely, its subsidiary Colas, specialist in road works and third branch of "construction" activities, remains clearly in the red, its contribution weighing down the group's results by 108 million euros.

Colas announced Thursday its intention to acquire Destia, the market leader in road infrastructure in Finland, planning to complete the transaction by the end of the year. "This corresponds to the geographic development strategy, in Northern Europe, the United States and Germany", detailed Mr. Roussat.

"Very solid" finances

Bouygues also announced a level of net debt at the end of June "historically low", at 2,8 billion euros, an improvement of more than 1,1 billion in one year.

"Available cash reached a record level for the end of the first half", at 11,8 billion euros, also said the group's statement.

Moreover, concerning the proposed merger between TF1 and M6, "the Bouygues and RTL groups signed the agreements relating to the proposed merger at the beginning of July", a "first step" in the operation. The timing of the merger is unchanged, with a conclusion expected at the end of 2022, subject to the agreement of the Superior Audiovisual Council (CSA) and the French Competition Authority.