French operator Bouygues Telecom has lowered its full year outlook for the group on the back of a worsening situation at its construction businesses. Guidance for TF1 and Bouygues Telecom remain the same. For the group, the company now expects an unchanged or slightly decreased operating profit, as compared to the year before.
Bouygues Energies & Services and Colas specialised activities faced tough situations and conditions in the third quarter, with malfunctions leading to delays, additional costs and compensation paid to customers for the one and strikes at French rail operator SNCF and bad weather conditions badly affecting the other. As a result, Bouygues Construction operating profit will fall by about EUR 140 million in the first nine months of this year. For Colas, the operating profit will decline by about EUR 25 million. This means the operating profit and operating profit margin at the businesses will be lower year-on-year, versus the previous forecast of an improvement.
Bouygues stressed that the building and civil works operations at Bouygues Construction and Roads Mainland France at Colas will post good results for the period.
