Bouygues (BOUYF) Nine Months 2024 Earnings Call Highlights: Steady Growth Amid Market Challenges

In This Article:

  • Revenue: EUR41.5 billion for the nine months of 2024, up 1% year-on-year.

  • Net Profit: EUR687 million, slightly higher compared to the nine months of 2023.

  • Net Debt: EUR8.5 billion at end September 2024, improved from EUR10.2 billion at end September 2023.

  • Construction Backlog: EUR31.8 billion at end September 2024, up 7% year-on-year.

  • Current Operating Profit from Activities: EUR1,719 million, increased by EUR96 million year-on-year.

  • TF1 Sales: Up 3% year-on-year for the nine months of 2024.

  • TF1 Advertising Revenue: Up 5% year-on-year.

  • Bouygues Telecom Sales to Customers: Up 5% year-on-year.

  • Bouygues Telecom EBITDA After Leases: EUR1,506 million, increased by EUR55 million year-on-year.

  • Free Cash Flow Before Working Capital Requirements: EUR919 million, improved by EUR254 million year-on-year.

  • Liquidity: EUR13.9 billion, including EUR2.7 billion in cash and equivalents.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bouygues (BOUYF) confirmed its 2024 outlook, indicating confidence in its strategic direction.

  • The construction business backlog reached a high level of EUR31.8 billion, up 7% year-on-year, providing strong visibility for future activities.

  • Bouygues Telecom achieved a 5% growth in sales billed to customers year-on-year, with a strong performance in fixed services.

  • The financial structure remains robust with a net debt of EUR8.5 billion at the end of September 2024, an improvement from the previous year.

  • TF1 group sales increased by 3% year-on-year, with media sales up 4% and advertising revenue up 5%.

Negative Points

  • Bouygues (BOUYF) faces a challenging market environment with low visibility on the timetable for recovery, particularly in the construction sector.

  • The net profit attributable to the group was slightly higher than the previous year, but future tax increases could impact profitability.

  • Bouygues Telecom's mobile ARPU declined due to competitive pressures and customer migration to more affordable plans.

  • The construction business's current operating profit from activities was lower than the previous year, impacted by a decrease in Bouygues Immobilier's contribution.

  • The French residential and commercial property markets remain challenging, affecting Bouygues Immobilier's backlog, which was down 18% year-on-year.

Q & A Highlights

Q: Can you provide any offsets or cost-cutting actions to limit the impact of the new tax on free cash flow in 2025 and 2026? A: Pascal Grange, Deputy CEO and CFO, stated that while they are optimizing their organization, there are no specific actions planned to mitigate the new tax charge this year.