Bouygues Telecom maintains FY growth outlook after solid Q2 gains

Nieuws Algemeen Frankrijk 30 AUG 2018
Bouygues Telecom maintains FY growth outlook after solid Q2 gains

French operator Bouygues Telecom reported a strong second quarter, maintaining the mobile customer growth of the first quarter with net additions of 448,000 in the three months to June. The company maintained its full-year outlook after growing service revenues 5 percent in the first half of the year.

The company finished Q2 with total mobile customers of 15.29 million. Excluding M2M, the company gained 120,000 new customers in Q2, to reach a base of 10.57 million. Mobile ARPU improved slightly to EUR 19.6 from EUR 19.5 a year ago and EUR 19.2 in Q1.

In the fixed market, Bouygues added 41,000 new customers in Q2, similar to the first quarter, for a total base of 3.53 million at end-June. Growth was driven by FTTH, with 62,000 net adds in Q2, taking Bouygues Telecom to a total of 391,000 FTTH customers at 30 June. 

Bouygues Telecom continued to expand its FTTH footprint, reaching a potential market of 5.5 million homes compared to 4.7 million at the end of March. Despite the higher share of fibre customers in the mix, fixed broadband ARPU was still down to EUR 25.6 from EUR 26.3 a year ago and in Q1.

Bouygues Telecom reported sales of EUR 2.563 billion for the first half of 2018, up 7 percent year-on-year. Service revenues rose 5 percent to EUR 2.074 billion, and the company said it still expects service revenue growth of over 3 percent in the full year 2018. 

EBITDA reached EUR 549 million in the first half, up 12 percent from a year earlier, and the EBITDA margin was 26.5 percent, up 1.7 points year-on-year. Bouygues reiterated that it expects the EBITDA margin on service revenue to be higher this year than in 2018. 

Operating profit rose 31 percent to EUR 239 million in the first half. The result was helped by a one-time gain of EUR 104 million from the sale of sites to Cellnex and a charge of EUR 18 million related to network-sharing in less dense areas.

The company also maintained its forecast for an annual capex budget of EUR 1.2 billion in 2018, after spending EUR 621 million in H1, and free cash flow of over EUR 300 million in 2019. 

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