Bouygues Telecom reports near 74% tumble in profits to EUR28m

16 May 2013

French conglomerate Bouygues Group has announced the company’s financial results for the first quarter of 2013, with 4% decline in revenues to EUR6.70 billion (USD8.62 billion) from EUR6.99 billion reported in 1Q 2012. The group stated net loss of EUR42 million year-on-year, an overall decrease of EUR77 million from the EUR35 million published in 2012. Bouygues’ telecommunication division, Bouygues Telecom, reported revenues of EUR1.15 billion in the first quarter of 2013, a 16% slump year-on-year from EUR1.37 billion, while profits plunged by nearly 74% from EUR107 million to EUR28 million in 1Q 2013. The company attributed the unfavourable comparison year-on-year to the disruption in the mobile market caused by the entry of low-cost rival Free Mobile, as the impact of the resultant price war was evident later in 2012. Bouygues Telecom’s earnings before interest, tax, depreciation and amortisation (EBITDA) also decreased by 28% to EUR212 million in Q1 2013, although the company reported cumulative cost savings in the mobile activity of EUR238 million through the period from end-December 2011 to end-March 2013.

By the end of March 2013, Bouygues’ mobile subscribers reached 11.27 million, with the company gaining just 20,000 net new mobile customers in the first quarter, while broadband subscriptions increased by 45,000 in three months to reach a total of 1.9 million.

France, Bouygues Telecom