French operator Bouygues Telecom is suspending the 2020 financial guidance published in February due to ongoing uncertainty caused by the Covid-19 pandemic. It had previously said that it was targeting a 5 percent growth in service revenues and a free cash flow of over EUR 300 million. The impact of the pandemic on telecom activities has been limited to date, said the company, adding that the market was experiencing a significant reduction in churn, as well as in gross additions. Guidance will remain suspended until there is greater visibility on the duration of the health emergency.
Bouygues Telecom's parent said that it could no longer achieve the 2020 guidance set at group level because of the significant negative effect of Covid-19 on its construction business and on broadcaster TF1, which recently reported a sharp acceleration in cancellations of advertising campaigns. The group also announced that its board of directors decided to withdraw the proposal to pay out a dividend at the AGM taking place on 23 April.
