The French industrial group Bouygues has reported its financial results for the year ended 31 December 2011, including those for its telecommunications subsidiary and France’s third mobile operator, Bouygues Telecom. Sales for the telco unit stood at EUR5.74 billion (USD7.71 billion) in 2011, up 2% from EUR5.64 billion the year before. Earnings before interest, taxation, depreciation and amortisation (EBITDA) was negatively impacted by the cut in mobile termination rate differentials, falling 7% to EUR1.27 billion, while net profit was down 17% to EUR370 million.
Bouygues Telecom claimed just over 11.3 million mobile subscribers at end-2011, up 2% from a year earlier, with 80.6% of these on post-paid contracts (a year-on-year increase of 1.7 percentage points). The firm also signed up 433,000 new broadband internet customers in 2011, giving it a total of 1,241,000 fixed broadband customers at end-December 2011. The group has said it will be cutting costs at Bouygues Telecom in 2012 to help offset an expected decline in sales for the year of around 10%, as competition in the market intensifies following the launch of fourth mobile network operator Free Mobile in January 2012.