Bouygues shares are higher Thursday, as the French industrial group reported its first half earnings results. Total group sales rose, largely thanks to an upbeat performance from its telecoms arm.
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The group, which owns France’s largest private TV broadcaster and also builds roads, reaffirmed its upbeat full year outlook.
By 1020 BST, Bouygues shares were 3.19% higher at €38.55. The stock has been broadly steady in recent weeks.
Bouygues H1 earnings
Earlier Thursday, French conglomerate Bouygues reported a 4% rise in total H1 sales compared with the same period in 2017. However, its current operating profit slid 12% to €303 million, hampered by a tough first quarter for its construction arm, amid the poor weather earlier in 2018.
Despite the disappointing performance of its construction arm, Bouygues said its telecoms business was showing signs of good growth. Total sales in that subsidiary grew 7%, while it secured 901,000 new mobile customers in the first six months of 2018.
“The Group reported current operating profit of €303 million in first-half 2018 versus €347 million in first-half 2017,” Bouygues said.
“This reflects a rise in profitability at Bouygues Telecom and current operating profit in the construction businesses, which was still impacted by poor weather conditions in the first quarter,” it added.
Positive outlook remains unchanged
Amid the finer details of the earnings release, Bouygues also shared its full year outlook, which was unchanged from the previous view, despite the weaker performance of tis construction arm.
“Benefiting from an upbeat environment in France and international markets, the construction businesses will continue to be selective and focus on profitability rather than volumes,” the French group said.
“The current operating profit and current operating margin of the construction businesses are expected to improve versus 2017,” it added.
On its telecoms group, Bouygues said that sales from services at its telecoms unit are expected to rise by 3% in 2018, compared with the 2017 performance.