Bouygues Nine Months 2024 Results

During the recent earnings call, Bouygues (EPA:BOUY) presented a robust financial update for the first nine months of 2024. The Deputy CEO and CFO, Pascal Grange, expressed optimism for the year, citing a strong construction backlog, improved financial performance, and reduced net debt. Bouygues Telecom (BCBA:TECO2m)'s new B2C brand, B.iG, aims to enhance the company's market position. Overall, group sales saw a slight increase driven by its construction and telecom sectors.

Key Takeaways

• Bouygues Construction's backlog increased to €31.8 billion, up 7% year-on-year.
• Equans, a Bouygues subsidiary, reported a COPA increase of €96 million to €1,719 million.
• Bouygues Telecom launched the B.iG brand and reported strong fixed performance.
• Group sales rose 1% to €41.5 billion; net debt decreased to €8.5 billion.
• TF1 Group's COPA margin declined, but the company remains confident for 2024.
• Bouygues reported net cash flow of €2,520 million and liquidity of €13.9 billion.
• Full-year 2024 results will be announced on March 6, 2025.

Company Outlook

• Anticipated slight increases in sales and operating profit for 2024.
• Equans confirmed a 3% sales increase forecast for the year.
• Completion of the La Poste Telecom acquisition expected by the end of 2024.

Bearish Highlights

• Bouygues Immobilier's backlog declined by 18% due to tough market conditions.
• TF1 Group's COPA margin decreased to 12.4%.
• Macroeconomic uncertainties impact Bouygues Immobilier's recovery visibility.

Bullish Highlights

• Bouygues Telecom showed strong growth in FTTH with 159,000 new Q3 customers.
• The financial structure remains robust, net gearing reduced to 61%.
• Positive margin improvements at Equans due to strategic pricing and contract management.

Misses

• Working capital requirements worsened by €2 billion since December 2023.
• Minimal impact from the Paris Olympics on roaming revenues.

Q&A Highlights

• Colas' one-off improvement in Q3 is not expected to recur in Q4.
• No significant changes in raw material costs anticipated.
• Increased D&A expected in Q4, returning to previous levels.

In summary, Bouygues maintains a strong financial position and is optimistic about future growth, despite navigating challenges like market conditions and energy costs. Full 2024 performance update is set for March 2025.