Bouygues raises telecoms target after beating profit expectations

(Reuters) -French conglomerate Bouygues reported better than expected first-half core profit on Tuesday and raised its telecoms division’s targets for the full year.

The construction, telecoms and media group posted current operating profit – operating profit excluding exceptional costs mainly related to merger and acquisition activity – of 492 million euros ($505 million) for the six months to June 30. That beat a median forecast of 409 million euros in an analyst poll compiled by the company.

The group now expects Bouygues Telecom’s earnings before interest, tax, depreciation, and amortisation (EBITDA) after leases to increase by more than 8% in 2022, having previously projected growth of about 7%.

The family-run group’s telecoms business achieved sales of 3.64 billion euros in the first half, up 5% from the same period last year.

In addition, Bouygues Telecom changed its target of 5% growth in sales from services to more than 5% growth in sales billed to customers, which it said was “more representative of its performance”.

The group’s construction and services activities, which accounted for 74% of total revenue, reported sales of 13.72 billion euros, up 7% year on year, mainly driven by its Colas subsidiary.

Net profit attributable to the group was 147 million euros, including costs related to the acquisition of energy services group Equans and a planned merger between its TV arm TF1 and rival M6.

That was down 64% from the first six months of last year, when net profit was boosted by the sale of several data centres and of shares in trainmaker Alstom.

TF1 and Bouygues last week said that the French competition authority had concerns about the proposed merger of TF1 and M6.

($1 = 0.9738 euros)

(Reporting by Valentine Baldassari and Elitsa GadevaEditing by Christian Schmollinger and David Goodman)