Earnings Release • Feb 28, 2012
Earnings Release
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The Bouygues group had a good year in 2011, turning in a robust operating performance and recording excellent commercial activity in the construction businesses.
Sales were higher than expected at €32.7 billion, an increase of 5% (3% like-for-like and at constant exchange rates). Current operating profit was up 3% at €1,819 million. Net profit attributable to the Group was stable at €1,070 million despite a lower contribution from Alstom. Following the cancellation of 52 million shares, net earnings per share calculated on the basis of the number of shares outstanding at 31 December amounted to €3.40 in 2011, 14% higher than in 2010.
| € million | 2010 | 2011 | Change | |
|---|---|---|---|---|
| Sales | 31,225 | 32,706 | +5% | |
| Current operating profit | 1,760 | 1,819 | +3% | |
| Operating profit | 1,7911 | 1,8572 | +4% | |
| Net profit attributable to the Group | 1,071 | 1,070 | = | |
| Net debt3 | 2,473 | 3,862 | +€1,389m | |
| Gearing3 | 23% | 40% | +17 pts |
1 Including +€31 million of other operating income and expenses, namely +€83 million at TF1 and -€52 million at Colas 2 Including +€38 million of other operating income and expenses at Bouygues Telecom 3At 31 December
Sales rose 6% to €24.4 billion and current operating profit 15% to €1 billion. Flourishing commercial activity lifted the order book to a record €24.8 billion at end-December 2011, 10% higher than at the same point in 2010, ensuring good visibility for 2012. This figure does not include either the Paris law courts complex contract, signed on 15 February 2012, or the Nimes-Montpellier railway bypass, for which the Bouygues-led consortium has been named preferred bidder.
* Calculated on the basis of the number of shares outstanding at 31 December (excluding treasury stock)
Bouygues Construction posted a 6% increase in sales to €9,802 million (up 5% in France and 8% on international markets). Current operating profit advanced 12% to €353 million and the current operating margin rose 0.2 points to 3.6% in a highly competitive environment, reflecting the smooth execution of contracts in progress. Net profit rose 12% to €226 million.
Order intake once more stood at a high level (€11 billion) after an excellent year in 2010, reflecting Bouygues Construction's successful positioning on its markets. The order book was 8% higher than at end-December 2010 at €15.3 billion, with international markets accounting for half of the total.
Bouygues Immobilier reported a 2% rise in sales to €2,465 million. Growth resumed in residential property sales, which rose by 2% overall and 11% in the second half of the year, while the commercial property business was boosted by the sale of the Farman building in Issy-les-Moulineaux and Green Office® in Meudon. The current operating margin was firm at 8.2% and net profit rose 11% to €120 million.
Residential property reservations increased 5% to €2,419 million, a new record, representing 14,723 units. Bouygues Immobilier thus consolidated its leading position on the French residential property market with a growing 14% market share. Overall reservations grew to €3,200 million (+29%) and include the signing of a number of major commercial property deals despite a sluggish market. The order book at end-December 2011 came to €3.1 billion (+34%).
Colas recorded a 6% rise in sales to €12,412 million (up 8% in France and 4% on international markets). Current operating profit was up 28% to €466 million and there was a 0.7-point improvement in the current operating margin to 3.8% as a result of adaptation and transformation measures begun in 2010, especially in Central Europe. Net profit advanced 50% to €336 million.
The good level of business activity resulted in a 5% increase in the order book vs. end-December 2010 to €6.5 billion. The order book increased both in mainland France (up 4%) and on international markets (up 7%).
TF1's sales were stable at €2,620 million. The contraction in advertising revenues at the TF1 TV channel was offset by advances in other activities, especially TMC and NT1. Acquiring these two channels has enabled TF1 to strengthen its position on a growing free-to-air DTT market. Current operating profit (€283 million) was 23% higher than in 2010 and the current operating margin improved 2 points to 10.8%. Net profit fell 20% to €183 million. Stripping out the effect of non-current items1 in 2010, it was up 25%.
1 Non-current income mainly generated by the remeasurement of the previously-held equity interests following the takeover of TMC and NT1
Bouygues Telecom's sales advanced 2% to €5,741 million and sales from network were stable at €5,082 million. As announced, EBITDA was negatively impacted by the cut in mobile termination rate differentials, falling 7% to €1,272 million. Operating profit amounted to €599 million and included €38 million of non-current income from an asset disposal. Net profit was down 17% to €370 million.
In a fiercely competitive mobile market, Bouygues Telecom gained 369,000 new mobile plan customers in 2011. The total customer base at end-December 2011 numbered 11.3 million, of whom 80.6% were on mobile plans (a year-on-year increase of 1.7 points). Thanks to strong momentum in the year, the MVNO customer base1 stood at 1.6 million at end-2011.
Performances on the fixed broadband market were very good. Bouygues Telecom led the field in terms of net market growth, signing up 433,000 new customers in 20112 . The operator had a total of 1,241,000 fixed broadband customers at end-December 2011.
1An estimate of the MVNO active customer base: customers who have carried out an outgoing operation during the last month
2Encompasses both broadband and very-high-speed plans
Alstom contributed €190 million to Bouygues' net profit in 2011, compared with €235 million in 2010. The group recorded sustained business activity in the first nine months of FY 2011/12, with order intake rising 20% to €15.1 billion. Alstom confirmed its operating margin target of between 7% and 8% for FY 2011/12.
Cash flow was up slightly to €3,325 million. As expected, net capital expenditure increased, especially at Bouygues Telecom, rising €235 million to €1,658 million1 . Free cash flow2 came to €862 million1 .
Cash flow generation resulted in a slight improvement in net debt compared with end-2010 (€2.5 billion), before factoring in the purchase of a block of 4G mobile frequencies in the 2.6 GHz band (€228 million) and the share repurchase tender offer (€1,250 million). Including these two transactions, net debt amounted to €3,862 million.
The purchase of a block of 4G mobile frequencies in the 800 MHz band for €683 million, allocated on 15 February 2012, will be booked in the first quarter of 2012.
With a Moody's credit rating of A3/stable outlook and a Standard & Poor's rating of BBB+/stable outlook, the Group successfully completed an €800-million bond issue in early 2012.
The Group has a high level of liquidity (€8.4 billion) and an evenly-spread redemption schedule.
1 Excluding a €228 million investment on 4G frequencies
2 Before change in the working capital requirement
The Board of Directors will ask the Annual General Meeting on 26 April 2012 to approve the payment of a dividend of €1.60 per share, stable on 2010. The ex-date, record date and payment date have been set at 30 April, 3 May and 4 May 2012 respectively.
The Board of Directors will ask the next Annual General Meeting to renew the terms of office of Martin Bouygues, François Bertière, Mrs Francis Bouygues and Georges Chodron de Courcel and propose the appointment of Anne-Marie Idrac to a seat on the Board.
The 2012 sales target reflects the contrasting situations of the Group's business areas.
The record order book gives the construction businesses good visibility. The economic and financial environment is uncertain but there are many significant projects in negotiation.
Despite the continued growth in the fixed broadband activity, Bouygues Telecom expects a contraction in sales in 2012. This factors in the planned cut in call termination rates (an impact estimated at around €350 million), the growth in SIM-only offers and the transformation of the mobile market driven notably by the arrival of a new operator at the start of the year. In this context, a cost savings plan will have to be implemented in 2012.
As it has demonstrated in recent years, the Bouygues group knows how to adapt to a changing environment in its different lines of business.
| Sales by business area € million |
2011 | 2012 objective |
Change % |
|---|---|---|---|
| Bouygues Construction | 9,802 | 10,000 | +2% |
| Bouygues Immobilier | 2,465 | 2,450 | = |
| Colas | 12,412 | 12,500 | +1% |
| TF1 | 2,620 | 2,620 | = |
| Bouygues Telecom | 5,741 | 5,140 | -10% |
| Holding company and other | 120 | 120 | = |
| Intra-Group elimination | (454) | (480) | nm |
| TOTAL | 32,706 | 32,350 | -1% |
| o/w France | 22,601 | 22,050 | -2% |
| o/w international | 10,105 | 10,300 | +2% |
In accordance with Afep/Medef recommendations, information on the remuneration of executive directors and the award of stock options will be published today on www.bouygues.com, under the Finance/Shareholders, Regulated information section.
15 May 2012: first-quarter 2012 sales and earnings (5.45pm CET) 28 August 2012: first-half 2012 results (5.45pm CET) 29 August 2012: first-half 2012 results presentation
The financial statements have been audited and the statutory auditors have issued a report certifying them without reserve.
Find the full financial statements and notes to the financial statements on www.bouygues.com.
The full-year 2011 results presentation to financial analysts will be webcast live on 29 February 2012 at 11am (CET) on www.bouygues.com.
Press contact: +33 (0)1 44 20 12 01 - [email protected]
Investors & analysts contact: +33 (0)1 44 20 10 79 - [email protected]
| Condensed consolidated income statement € million |
2010 | 2011 | Change % |
|---|---|---|---|
| Sales | 31,225 | 32,706 | +5% |
| Current operating profit | 1,760 | 1,819 | +3% |
| Other operating income and expenses | 311 | 382 | nm |
| Operating profit | 1,791 | 1,857 | +4% |
| Cost of net debt | (330) | (277) | -16% |
| Other financial income and expenses | 6 | (13) | nm |
| Income tax expense | (482) | (528) | +10% |
| Share of profits and losses from associates | 278 | 198 | -29% |
| Net profit | 1,263 | 1,237 | -2% |
| Minority interests | (192) | (167) | -13% |
| Net profit attributable to the Group | 1,071 | 1,070 | = |
| Net profit per share (in €) | 3.03 | 3.06 | +1% |
| Restated net profit per share3 (in €) |
2.97 | 3.40 | +14% |
1Other operating income and expenses include:
TF1: non-current income of €83 million mainly generated by the remeasurement of the previously-held equity interests following the takeover of TMC and NT1
Colas: non-current items of -€52 million mainly relating to charges for former competition-related matters and write downs of goodwill in Central Europe
2Non-current income relating to an asset disposal at Bouygues Telecom
3 Calculated on the basis of the number of shares outstanding at 31 December (excluding treasury stock)
| Fourth-quarter consolidated | 4th quarter | Change | |
|---|---|---|---|
| income statement € million |
2010 | 2011 | % |
| Sales | 8,158 | 8,987 | +10% |
| Current operating profit | 432 | 481 | +11% |
| Operating profit | 3931 | 481 | +22% |
| Net profit attributable to the Group | 148 | 276 | +86% |
1 Including -€39 million of other operating income and expenses, namely -€13 million at TF1 and -€26 million at Colas
| Condensed consolidated balance sheet € million |
End-2010 | End-2011 |
|---|---|---|
| Non-current assets Current assets |
18,620 16,966 |
19,442 15,480 |
| TOTAL ASSETS | 35,586 | 34,922 |
| Shareholders' equity Non-current liabilities Current liabilities |
10,607 8,732 16,247 |
9,678 8,875 16,369 |
| TOTAL LIABILITIES | 35,586 | 34,922 |
| Net debt | 2,473 | 3,862 |
| Sales by business area € million |
2010 | 2011 | Change % |
Change like-for-like and at constant exchange rates % |
|---|---|---|---|---|
| Bouygues Construction | 9,235 | 9,802 | +6% | +2% |
| Bouygues Immobilier | 2,418 | 2,465 | +2% | +2% |
| Colas | 11,661 | 12,412 | +6% | +5% |
| TF1 | 2,622 | 2,620 | = | -2% |
| Bouygues Telecom | 5,636 | 5,741 | +2% | +2% |
| Holding company and other | 132 | 120 | nm | nm |
| Intra-Group elimination | (479) | (454) | nm | nm |
| Total | 31,225 | 32,706 | +5% | +3% |
| o/w France | 21,5761 | 22,601 | +5% | +4% |
| o/w international | 9,6491 | 10,105 | +5% | +1% |
1 Following the change in status of Mayotte, which has become a French department, sales were reclassified to France
| Contribution of business areas to EBITDA € million |
2010 | 2011 | Change % |
|---|---|---|---|
| Bouygues Construction | 606 | 549 | -9% |
| Bouygues Immobilier | 184 | 181 | -2% |
| Colas | 894 | 934 | +4% |
| TF1 | 319 | 357 | +12% |
| Bouygues Telecom | 1,367 | 1,272 | -7% |
| Holding company and other | (40) | (51) | nm |
| TOTAL | 3,330 | 3,242 | -3% |
| Contribution of business areas to current operating profit € million |
2010 | 2011 | Change % |
|---|---|---|---|
| Bouygues Construction Bouygues Immobilier Colas TF1 Bouygues Telecom Holding company and other |
315 204 365 230 692 (46) |
353 201 466 283 561 (45) |
+12% -1% +28% +23% -19% nm |
| TOTAL | 1,760 | 1,819 | +3% |
| Contribution of business areas to operating profit € million |
2010 | 2011 | Change % |
| Bouygues Construction Bouygues Immobilier Colas TF1 Bouygues Telecom Holding company and other |
315 204 313 313 692 (46) |
353 201 466 283 599 (45) |
+12% -1% +49% -10% -13% nm |
| TOTAL | 1,791 | 1,857 | +4% |
| Contribution of business areas to net profit attributable to the Group € million |
2010 | 2011 | Change % |
|---|---|---|---|
| Bouygues Construction | 201 | 226 | +12% |
| Bouygues Immobilier | 108 | 120 | +11% |
| Colas | 216 | 324 | +50% |
| TF1 | 98 | 80 | -18% |
| Bouygues Telecom | 397 | 331 | -17% |
| Alstom | 235 | 190 | -19% |
| Holding company and other | (184) | (201) | nm |
| TOTAL | 1,071 | 1,070 | = |
| Net cash by business area € million |
End-2010 | End-2011 | Change (€ million) |
|---|---|---|---|
| Bouygues Construction | 2,856 | 2,869 | +€13m |
| Bouygues Immobilier | 376 | 507 | +€131m |
| Colas | (57) | 28 | +€85m |
| TF1 | 17 | (40) | -€57m |
| Bouygues Telecom | (170) | (581) | -€411m |
| Holding company and other | (5,495) | (6,645) | -€1,150m |
| TOTAL | (2,473) | (3,862) | -€1,389m |
| Contribution of business areas to cash flow € million |
2010 | 2011 | Change (€ million) |
|---|---|---|---|
| Bouygues Construction | 509 | 546 | +€37m |
| Bouygues Immobilier | 195 | 197 | +€2m |
| Colas | 814 | 915 | +€101m |
| TF1 | 297 | 346 | +€49m |
| Bouygues Telecom | 1,327 | 1,288 | -€39m |
| Holding company and other | 102 | 33 | -€69m |
| TOTAL | 3,244 | 3,325 | +€81m |
| Contribution of business areas to net capital expenditure € million |
2010 | 2011 | Change (€ million) |
|---|---|---|---|
| Bouygues Construction | 221 | 268 | +€47m |
| Bouygues Immobilier | 4 | 12 | +€8m |
| Colas | 474 | 414 | -€60m |
| TF1 | 43 | 108 | +€65m |
| Bouygues Telecom | 680 | 859 | +€179m |
| Holding company and other | 1 | (3) | -€4m |
| Total excl. 4G frequencies (2.6 GHz) | 1,423 | 1,658 | +€235m |
| 4G frequencies (2.6 GHz) | 0 | 228 | +€228m |
| TOTAL | 1,423 | 1,886 | +€463m |
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