|By PR Newswire||
|November 14, 2012 11:47 AM EST||
PARIS, November 14, 2012 /PRNewswire/ --
- Sales: €24.6 billion (+4%)
- Net profit: €564 million (-29%), impacted by Bouygues Telecom
- Construction businesses' order book at a high level, up 10% at €26.9 billion
- Alstom's performances validates its roadmap
- Sales target revised upwards to €33.2 billion
The Bouygues group reported a 4% increase in consolidated sales in the first nine months of 2012 to €24.6 billion (up 1% like-for-like and at constant exchange rates).
Current operating profit amounted to €954 million, down 29% on the first nine months of 2011, and operating profit fell 38% to €859 million after the inclusion of non-recurring charges related to adaptation plans at Bouygues Telecom and TF1. Net profit was also down 29% at €564 million. In keeping with the half-year trend, these results are mainly due to the lower profitability at Bouygues Telecom.
The financial structure is sound, with net debt under tight control.
(EUR million) 9-month 2011 9-month 2012 Change Sales 23,719 24,597 +4% Current operating profit 1,338 954 -29% Operating profit 1,376 859 -38% Net profit attributable to the Group 794 564 -29% Net debt 3,808 5,832 +EUR2,024m Net gearing 36% 61% +25 pts
Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom
Including €95 million linked to the cost of the adaptation plans at Bouygues Telecom and TF1
End of period
Net debt of €3,639 million before factoring in two one-off events: the share repurchase tender offer (€1,250 million) and the purchase of
4G frequencies (€943 million)
In keeping with the first-half trend, the construction businesses posted good commercial performances. The order book stood at €26.9 billion, 10% higher than at end-September 2011, giving good visibility on future business activity.
Bouygues Construction reported nine-month sales of €7,748 million, up 9% overall (up 6% in France and 13% on international markets) and 4% like-for-like and at constant exchange rates. The current operating margin was a robust 3.4% and net profit amounted to €174 million, up 9%.
Order intake was very high, both in France and in international markets, growing 8% to reach €9 billion. The order book stood at €17 billion, 12% higher than at end-September 2011, with international markets accounting for 45%.
Bouygues Immobilier reported a 5% increase in sales to €1,631 million for the first nine months of 2012 (up 8% in residential property, down 16% in commercial property). The operating margin stood at 7.5%, reflecting early adjustment measures in response to lower residential property reservations in a contracting French market. Net profit amounted to €75 million.
In an unfavourable economic and tax environment, residential property reservations reflected the wait-and-see stance on the property market and a fall in buy-to-let investment. Reservations were 32% lower than in the first nine months of 2011 at €1,040 million. Commercial property reservations stood at a good level, up 6% to €358 million despite a sluggish market.
Sustained by the commercial property segment, the order book rose 9% in comparison with end-September 2011 to €2,879 million, offering good visibility and representing 14 months of sales.
Colas reported sales of €9,670 million, an increase of 5% overall (up 1% in France and 12% on international markets) and 3% like-for-like and at constant exchange rates. Current operating profit fell €38 million to €236 million, affected by delays in contract execution due to poor weather conditions in mainland France in the first half of 2012 and lower profitability on the sale of refined oil products. The cost of raw materials used in the refining activity has risen sharply and could only be partially passed on to customers.
Net profit amounted to €178 million, €31 million less than in the first nine months of 2011.
The order book grew 5% to €7 billion versus end-September 2011.
TF1 has launched the second phase of its optimisation plan
TF1 reported a 1% rise in sales to €1,853 million. The fall in advertising revenue was offset by the growth of diversification activities, up 6% on the first nine months of 2011, but continued to affect current operating profit, which stood at €154 million, down €41 million. TF1 has launched the second phase of its optimisation plan, designed to make its business model more flexible and to continue cutting costs. The plan aims to generate recurring cost savings of €85 million by end-2014. A non-recurring €25-million charge related to this plan was booked in the third quarter of 2012. Nine-month 2012 operating profit amounted to €129 million and net profit to €87 million, €38 million lower than in the first nine months of 2011.
Bouygues Telecom confirms its 2012 targets and is continuing its adaptation plan
Bouygues Telecom reported an 8% drop in nine-month 2012 sales to €3,951 million and sales from network dropped 8% to €3,518 million. As expected, mobile sales from network continued to decline in the third quarter, while sales in the fixed broadband segment showed strong growth.
EBITDA stood at €807 million, €228 million lower than in the first nine months of 2011, in line with the full-year target of €900 million. Current operating profit amounted to €206 million, reflecting the drop in EBITDA as well as the increase in amortisation expense and provisions. Operating profit for the first nine months of 2012, at €136 million, included a €70-million non-recurring charge related to the adaptation plan, booked in the third quarter. Net profit amounted to €76 million.
The €300-million adaptation and savings plan is being gradually rolled out and is expected to have a full impact in 2013. The voluntary redundancy plan concerning 556 employees is currently under way.
In keeping with the trend of the second quarter, Bouygues Telecom improved its commercial performance in the mobile segment. It acquired 178,000 new mobile customers, with a net gain of 11,000 customers, excluding the impact of integrating Darty Telecom and Simyo. 188,000 new plan customers joined Bouygues Telecom in the third quarter of 2012, including 64,000 Darty Telecom customers.
B&YOU continued to grow, with a total of 625,000 customers at end-September 2012.
Finally, Bouygues Telecom continued to expand on the fixed broadband market, with 359,000 net additions in the third quarter and 77,000 new customers excluding the impact of integrating Darty Telecom. This gave a base of 1.8 million customers at 30 September 2012, up 57% compared with 30 September 2011.
Includes broadband and very-high-speed broadband subscribers. Customers gained following the acquisition of Darty Telecom,
effective as of 24 July 2012, are included in Q3 2012 financial statements.
Alstom's performances validates its roadmap
As announced, Alstom contributed €181 million to the Group's net profit in the first nine months of 2012, compared with €134 million in the first nine months of 2011.
Order intake grew robustly by 19% to €12.1 billion in the first half of FY2012/13. The order book at end-September stood at €52 billion, representing 31 months' sales.
Alstom confirmed that it expects sales to grow by more than 5% per year for the current fiscal year and the next two fiscal years, matched by a steady improvement in the operating margin to around 8% by March 2015. Free cash flow is expected to be positive in each of the next three fiscal years.
Following Alstom's €350-million capital increase, via a private placement, on 4 October 2012, Bouygues' stake in Alstom has fallen to 29.4% from 30.7% on 30 September 2012.
Under IFRS, this event triggers a dilution loss of €53 million, which will be recognised as a non-current operating charge in the fourth quarter of 2012.
A €109-million increase in free cash flow in the construction businesses partly offset the €241-million drop in free cash flow at Bouygues Telecom. Overall, the Group's free cash flow in the first nine months of the year amounted to €713 million, €173 million less than in the same period of 2011.
Net debt amounted to €5.8 billion at end-September 2012. This represents an improvement of €169 million in comparison with end-September 2011, before factoring in the purchase of two blocks of 4G frequencies (€943 million) and the share repurchase tender offer (€1,250 million).
The Group launched a €700-million bond issue in October 2012, redeemable in 2023. The Group has a high level of liquidity (€7.3 billion) and an evenly-spread redemption schedule.
Before the change in working capital requirement
Before investment in 4G frequencies in the first nine months of 2012 (acquisition cost and capitalised interest)
Significant events since 30 June 2012
- 3 July 2012: Bouygues Telecom announces a voluntary redundancy plan concerning 556 jobs.
- 3 July 2012: Bouygues Bâtiment International, a Bouygues Construction subsidiary, takes 100% ownership of Leadbitter.
- 5 July 2012: TF1 signs the agreement for its new HD1 channel with the French broadcasting authority, CSA.
- 28 August 2012: Bouygues Telecom and Darty announce the launch of Bouygues Telecom Edition Darty offers, sold exclusively in Darty's 226 stores.
- 6 September 2012: B&YOU launches the only prepaid card without an expiry date and with the market's lowest prepaid rates for calls, SMS and mobile internet in mainland France.
- 20 September 2012: Launch of the Campus Val de Bièvre project, designed and developed by Bouygues Immobilier under its Rehagreen® initiative.
- 23 October 2012: Colas announces a project to reorganise its roads business in mainland France around seven regional subsidiaries, all under the Colas name.
- 25 October 2012: Colas Rail, in a consortium, wins an €85-million contract to extend Line 1 of the Algiers metro.
- 30 October 2012: Bouygues Construction, in a consortium, wins a €110-million contract to build several sports facilities in Canada.
- 6 November 2012: B&YOU launches new ground-breaking offers on the low-cost mobile market.
2012 sales target and outlook
On the basis of the situation at 30 September, the 2012 sales target has been revised upwards from €32.8 billion to €33.2 billion, 2% higher than in 2011.
Sales by business area 2012 target (EUR million) 2011 Reported Reported Reported Reported % change in March in May in August in November Bouygues Construction 9,802 10,000 10,100 10,200 10,400 +6% Bouygues Immobilier 2,465 2,450 2,450 2,450 2,450 = Colas 12,412 12,500 12,700 12,700 12,900 +4% TF1 2,620 2,620 2,620 2,620 2,620 = Bouygues Telecom 5,741 5,140 5,140 5,180 5,200 -9% Holding company and other 120 120 120 120 120 nm Intra-Group elimination (454) (480) (480) (470) (490) nm TOTAL 32,706 32,350 32,650 32,800 33,200 +2% o/w France 22,601 22,050 21,950 22,050 22,300 -1% o/w international 10,105 10,300 10,700 10,750 10,900 +8%
The amended 2012 Budget Act and the 2013 Budget Act should result in higher taxes and charges of around €70 million in 2012 and about a further €10 million in 2013.
27 February 2013: full-year 2012 results
7.00 am: press release
9.00 am: press conference
11.00 am: analysts' meeting
The financial statements have been subject to a limited review by the statutory auditors and the corresponding report has been issued.
You will find the full financial statements and notes to the financial statements on http://www.bouygues.com.
Condensed consolidated income statement 9-month % change (EUR million) 2011 2012 Sales 23,719 24,597 +4% Current operating profit 1,338 954 -29% Other operating income and expenses 38 (95) nm Operating profit 1,376 859 -38% Cost of net debt (205) (212) +3% Other financial income and expenses (1) 8 nm Income tax expense (395) (232) -41% Share of profits and losses from associates 143 210 +47% Net profit 918 633 -31% Minority interests (124) (69) -44% Net profit attributable to the Group 794 564 -29%
Non-current income relating to an asset disposal at Bouygues Telecom
Cost of the adaptation plans at Bouygues Telecom (for €70 million) and TF1 (for €25 million)
Third-quarter consolidated income statement Third-quarter (EUR million) 2011 2012 % change Sales 8,505 9,092 +7% Current operating profit 586 478 -18% Operating profit 624 383 -39% Net profit attributable to the Group 403 286 -29%
Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom
Including €95 million linked to the cost of the adaptation plans at Bouygues Telecom and TF1
Sales Change by business area like-for-like (EUR million) 9-month % change and at constant exchange rates 2011 2012 Bouygues Construction 7,086 7,748 +9% +4% Bouygues Immobilier 1,548 1,631 +5% +5% Colas 9,168 9,670 +5% +3% TF1 1,839 1,853 +1% = Bouygues Telecom 4,285 3,951 -8% -9% Holding company and other 90 94 nm nm Intra-Group elimination (297) (350) nm nm Total 23,719 24,597 +4% +1% o/w France 16,391 16,367 = -1% o/w international 7,328 8,230 +12% +4%
Export sales of refined oil products were reclassified according to their location
Contribution of business areas to EBITDA (EUR million) 9-month % change 2011 2012 Bouygues Construction 370 432 +17% Bouygues Immobilier 126 117 -7% Colas 595 538 -10% TF1 229 201 -12% Bouygues Telecom 1,035 807 -22% Holding company and other (41) (24) nm TOTAL 2,314 2,071 -11%
Contribution of business areas to current operating profit 9-month % change (EUR million) 2011 2012 Bouygues Construction 266 260 -2% Bouygues Immobilier 127 123 -3% Colas 274 236 -14% TF1 195 154 -21% Bouygues Telecom 512 206 -60% Holding company and other (36) (25) nm TOTAL 1,338 954 -29%
Contribution of business areas to net profit attributable to the Group 9-month % change (EUR million) 2011 2012 Bouygues Construction 159 174 +9% Bouygues Immobilier 78 75 -4% Colas 201 172 -14% TF1 55 38 -31% Bouygues Telecom 316 68 -78% Alstom 134 181 +35% Holding company and other (149) (144) nm TOTAL 794 564 -29%
Net cash by business area 9-month Change (EUR million) (EURm) 2011 2012 Bouygues Construction 2,393 2,700 +EUR307m Bouygues Immobilier 275 168 -EUR107m Colas (823) (786) +EUR37m TF1 87 (18) -EUR105m Bouygues Telecom (440) (1,475) -EUR1,035m Holding company and other (5,300) (6,421) -EUR1,121m TOTAL (3,808) (5,832) -EUR2,024m
Contribution of business areas to cash flow (EUR million) 9-month Change (EURm) 2011 2012 Bouygues Construction 400 419 +EUR19m Bouygues Immobilier 129 121 -EUR8m Colas 620 621 +EUR1m TF1 242 169 -EUR73m Bouygues Telecom 1,052 723 -EUR329m Holding company and other 40 62 +EUR22m TOTAL 2,483 2,115 -EUR368m
Contribution of business areas to net capital expenditure (EUR million) 9-month Change (EURm) 2011 2012 Bouygues Construction 177 117 -EUR60m Bouygues Immobilier 7 10 +EUR3m Colas 252 223 -EUR29m TF1 29 18 -EUR11m Bouygues Telecom 536 586 +EUR50m Holding company and other (4) 4 +EUR8m Total excl. 4G frequencies (800 MHz band) 997 958 -EUR39m 4G frequencies (800 MHz band) 0 715 +EUR715m TOTAL 997 1,673 +EUR676m
Includes acquisition cost and capitalised interest
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Nov. 30, 2015 02:00 AM EST Reads: 445
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 30, 2015 02:00 AM EST Reads: 445
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Nov. 30, 2015 12:00 AM EST Reads: 449
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 29, 2015 02:00 PM EST Reads: 487
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 29, 2015 01:00 PM EST Reads: 358
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 29, 2015 12:45 PM EST Reads: 422
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 29, 2015 12:30 PM EST Reads: 427
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 29, 2015 12:00 PM EST Reads: 528
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 29, 2015 11:45 AM EST Reads: 332
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 29, 2015 09:45 AM EST Reads: 454
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 29, 2015 09:15 AM EST Reads: 347
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 29, 2015 08:45 AM EST Reads: 232
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 29, 2015 08:00 AM EST Reads: 282
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 29, 2015 07:00 AM EST Reads: 501
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Nov. 29, 2015 06:45 AM EST Reads: 745
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 29, 2015 06:00 AM EST Reads: 560
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 29, 2015 06:00 AM EST Reads: 377
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 29, 2015 05:00 AM EST Reads: 465
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 29, 2015 04:30 AM EST Reads: 489
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 29, 2015 04:00 AM EST Reads: 381