Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bouygues (BOUYF, Financial) confirmed its group outlook for 2025, with group sales and COPA both up year-on-year.
- The construction backlog reached a record level of EUR34.2 billion, up 12% year-on-year, providing good visibility on future activities.
- Net debt improved by EUR645 million year-on-year, despite significant acquisitions, indicating strong financial management.
- Bouygues Telecom achieved a 6% growth in sales billed to customers year-on-year, driven by strong performance in the Fixed segment.
- Equans showed significant improvement with a COPA margin increase of 0.9 points to 3.8%, reflecting successful execution of strategic plans.
Negative Points
- The net result attributable to the group was negatively impacted by an exceptional income tax surcharge, leading to a net loss of EUR156 million.
- Bouygues Telecom's EBITDA after leases decreased due to higher energy costs and increased IFER tax on mobile sites.
- The macroeconomic environment remains uncertain, affecting the pace of growth in certain segments like giga factories and data centers.
- Bouygues Immobilier's backlog remains low, reflecting a challenging market environment.
- The Fixed ABPU growth rate is expected to slow down in 2025 compared to previous years.
Q & A Highlights
Q: Can you provide insights into the current telecom market, particularly regarding pricing pressures in mobile and fixed segments?
A: Christian Lecoq, Bouygues Telecom SA - CFO: The mobile market is less dynamic with slight growth and sustained competition in the low-end segment. We initiated an upward trend in tariffs, but not all competitors followed. In the high-end, our new marketing strategy has reduced churn and improved customer satisfaction. In fixed, we are gaining market share, especially in rural areas, due to our strong network quality.
Q: How is the synergy extraction and margin improvement progressing at Equans?
A: Pascal Grange, Bouygues SA - Deputy CEO and CFO: We are implementing a strategic plan focusing on pricing, purchasing, and productivity improvements. This has led to gradual margin improvements, with a target to reach a 5% margin by 2027. We are optimistic about achieving slightly higher margins than previously guided for 2025.
Q: Are there any impacts from tariffs on Equans or construction businesses?
A: Pascal Grange, Bouygues SA - Deputy CEO and CFO: There is no significant impact from tariffs as our operations are largely localized. The main concern is the global economic environment, which remains uncertain.
Q: Could you elaborate on the slowdown in certain market segments for Equans in Q1?
A: Pascal Grange, Bouygues SA - Deputy CEO and CFO: The slowdown is due to a wait-and-see approach in segments like giga factories for batteries and data centers, where technological advancements and policy changes are causing delays in decision-making.
Q: What is the outlook for Bouygues Telecom's fixed ABPU growth?
A: Christian Lecoq, Bouygues Telecom SA - CFO: Fixed ABPU growth will continue in 2025 but at a slower pace than previous years. This is due to the end of DSL and WiFi 5 commercialization and the introduction of new technologies at higher prices, along with the impact of our B&YOU offers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
