http://www.morningstar.com/earnings/45252921-bouygues-en-q3-2012.aspx

Bouygues EN
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/14/2012

Operator: Welcome to the Bouygues Earnings Conference Call for the first nine months of 2012. Please be aware that each of your lines is in a listen-only mode. At the conclusion of the presentation we will open the floor for questions. At that time we will provide instructions for the procedure to follow if you would like to ask a question. I would like to introduce Mrs. Valerie Agathon, Vice President, Investor Relations of Bouygues. Madam, please go ahead.

Valerie Agathon - VP, IR: Good afternoon, ladies and gentlemen. I would like to remind everyone that you can find on the Company website at www.bouygues.com the earnings press release, the presentation we will be commenting on during this conference call, an excel file with historical key figures for the Group and each business and the Company financial statement.

Statements made on this call are forward-looking statements. Such statements reflect objectives that are based on management's current expectations or estimates and are subject to a number of factors and uncertainties that could cause actual figure to differ materially from those described in the forward-looking statements.

I would now like to turn the call over to Mr. Philippe Marien, Chief Financial Officer of Bouygues.

Philippe Marien - CFO and Chairman and Director, Bouygues Telecom: Thank you, Valerie. Good afternoon to all of you, and thank you for joining us. I would like to welcome everyone to our conference call to discuss Bouygues' results for the first nine months of 2012. With me in the room is Eric Haentjens, Executive Vice President, Finance, IT and Administration of Bouygues Telecom. Following my comments, we will be available to answer your questions.

Before starting to comment on the slides, I would like to share with you the main highlights of this announcement. First, the nine months results are in line with the first half announcement and continue to reflect Bouygues Telecom's decrease in profitability. Second, Bouygues Telecom is perfectly on track with its yearly objectives. The mobile install-base is stabilized and the strategic positioning for B&YOU and Bbox is reinforced thanks to new offers. Third, the construction businesses commercial activity is strong, thus providing good visibility and the free cash flow is growing. Finally, we have implemented adaptation measures wherever this is required and have demonstrated our ability to adapt to challenging environments.

Turning to the presentation on Slide 4, you can see that sales grew 4% to EUR24.6 billion as the growth in the construction businesses more than offset the anticipated decline in Bouygues Telecom.

On Slide 5 current operating profit for the nine months was EUR954 million, and as you have seen through the first half of the year, the decline mainly reflects the expected decrease in profitability at Bouygues Telecom. At EUR859 million, operating profit includes EUR95 million of nonrecurring costs in the third quarter related to TF1 and Bouygues Telecom adaptation plans. Those costs are reported in the other operating expense line.

Turning to Slide 6, net profit attributable to the Group for the first nine months declined 29% to EUR564 million, again mainly due to the decrease in Bouygues Telecom. For the nine months Alstom’s contribution is EUR181 million, up EUR47 million compared to last year. Based on Alstom's first half 2012-2013 results that they were released on November of 7th, we can calculate that for the full year Alstom's contribution will be EUR240 million, up 26% from EUR190 million last year.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.