i-mode success can’t prevent Bouygues slipping into the red

19 Jun 2003

French industrial group Bouygues slid into the red in the first quarter 2003, despite strong sales growth at its mobile subsidiary Bouygues Télécom. Much of its telecoms’ success is attributable to its i-mode multimedia service, licensed from Japan’s NTT DoCoMo, which has signed up 200,000 customers in the six months since its launch in November 2002. Bouygues Télécom saw a 14% growth in sales to EUR766 million, whilst operating income increased slightly to EUR86 million and net profit rose to EUR38 million, up EUR5 million year-on-year. However, the group’s water business Saur and road building subsidiary Colas were both hit badly by the seasonal impact of bad weather in the period, contributing to a total group net loss of EUR9 million for the three months ending 31 March, compared to the EUR16 million profit of the same period in 2002.