Bloomberg News

Bouygues Profit Misses Estimates as Weather Hurts Road Works

May 15, 2012

Bouygues SA (EN), the French building, television and telecommunications company, reported earnings that missed analysts’ estimates as bad weather hurt roadworks and it lost mobile phone customers.

Current operating income fell 46 percent in the first quarter from a year earlier to 82 million euros ($105 million), the Paris-based company said in a statement today. Analysts polled by Bloomberg had forecast 96 million euros. Sales rose 4 percent to 6.99 billion euros, beating estimates.

“A particularly wet winter in Europe” accounted for a wider loss at the Colas roadworks unit, Bouygues said in the statement.

Bouygues raised its 2012 sales forecast to 32.65 billion euros from a February forecast of 32.35 billion euros as the company’s backlog for road and building construction rose 13 percent in the first quarter to a record 27 billion euros.

Telecom revenue may recede by 10 percent to 5.14 billion euros in 2012, hurt by the arrival of Iliad SA (ILD) in France’s mobile phone market, a drop in handset sales tied to subscriptions and a cut in so-called call-termination rates, Bouygues reiterated today.

Bouygues Telecom, France’s third-largest mobile-phone operator, posted an 8 percent decline in earnings before interest, taxes, depreciation and amortization to 296 million euros in the first quarter, when it lost a net 210,000 mobile- phone subscribers and 169,000 prepaid customers.

Competition and the other factors will have a negative impact of about 250 million euros on Bouygues Telecom’s Ebitda in 2012, Bouygues reiterated today. Bouygues Telecom is planning 300 million euros in cost cuts, which will start to have an impact in 2013, the company said.

Bouygues shares have declined 18 percent this year. That compares with a 17 percent drop in France Telecom SA (FTE), France’s largest phone company.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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