By Michal Aleksandrowicz
(Reuters) -France’s Bouygues posted better-than-expected nine-month core earnings on Tuesday, thanks to its energy arm Equans, and its construction unit, which got a more than 2 billion euro ($2.18 billion) order in Australia, sending its shares up 4.3%.
Sales for Equans – which was acquired from French power group Engie in 2022 to boost Bouygues’ energy transition and services – rose 3% in the January-September period, lifted by orders for solar power, data centres and smart factories.
It offset the impact of Equans’ gradual exit from the new-build housing business in the UK.
Its Construction unit’s sales were up 5%, supported by major contracts in Australia, including the more than 2 billion euro order for a highway tunnel.
The real-estate unit posted a 13% drop in sales, as it still faces difficulties in France.
The construction-to-telecoms group had said in April it planned to lay off more than a fifth of the struggling unit’s staff in the country, with results expected in the fourth quarter.
In telecoms, it added 408,000 new customers for fixed-line connections during the reported period. But in the mobile segment, the firm flagged competition in the low-end segment, saying that the rising cost of living has been leading some clients to migrate to cheaper plans.
It now expects completion of the La Poste Telecom acquisition before the end of the year, adding it will adapt its telecom unit’s guidance to factor in the transaction in the months following completion at the latest. Current operating profit from activities (COPA) rose to 1.72 billion euros, beating an analysts’ consensus estimate of 1.63 billion euros, according to a company-compiled poll.
Total sales in the period rose to 41.49 billion euros, compared with the consensus of 41.39 billion euros.
The group confirmed its annual financial targets announced in February.
($1 = 0.9184 euros)
(Reporting by Michal Aleksandrowicz; Editing by Rashmi Aich)
