Wednesday, February 25, 2015

Bouygues again in the red in telecoms – BBC

Bouygues again in the red in telecoms – BBC

The telecom operator has decreased by 5% of its revenue and a net loss of 41 million euros in 2014. The other sectors of the Bouygues group, including construction, are stable.

The year 2014 has not been kind to Bouygues Telecom, but Martin Bouygues remains optimistic. “We deceive every day new customers,” said Wednesday the CEO of Bouygues industrial group during the presentation of its annual results. They have exceeded analysts’ forecasts: Bouygues recorded sales of 33.14 billion euros and a net profit of € 807 million in 2014. “Bouygues has again demonstrated its ability to adapt to changes in its environment, “praised Martin Bouygues. “I am confident in the ability of each of the Group’s businesses to reinvent themselves to seize opportunities in all markets and restore growth.”

If the results are stable in the construction sector ( 26.5 billion in revenue in 2014, representing 80% of group revenue), they are down for Bouygues Telecom. The operator posted a fall of 5% of its turnover, which reached 4.4 billion euros, and back into the red with a net loss of 41 million euros. “The hardest part of the telecom crisis is past,” yet assured Martin Bouygues. The CEO has going for some good numbers. Bouygues Telecom has recruited 415,000 new customers in fixed broadband with the launch of a triple play offer to 19.99 euros per month end of 2013, and 220,000 on the mobile in 2014. It is rare good news of year. To reduce costs and become profitable, the operator has developed a transformation plan, especially marked by the voluntary departure of approximately 1,400 employees at the end of January. He must save nearly € 300 million by 2016.

However, no question of imagining a merger with another operator. Bouygues Telecom has tried to get closer to competition to face a market shaken by the arrival of Free and its bargains, in 2012. He tried to buy SFR, in April 2014, without success. It was the subject from multiple takeover rumors, the last by Altice (LICO-Numericable). In an interview Tuesday to Financial Times , CEO of Altice, Dexter Goei, assured that there was a “pipeline of opportunities” in the European telecom market. “We will go through phases of convergence and consolidation, especially for mobile operators” has he particularly said.

Martin Bouygues, he believes it is possible the French market with four operators “by finding fair competitive conditions “” No negotiation is underway, “he insisted. “The choice is independence, we have been clear about that.” When asked if Altice is the “natural” acquired Bouygues Telecom, he exclaims: “It is we who are the buyer Natural SFR, Orange and Numericable! “

The CEO of Bouygues therefore prefer to talk about the future rather than the past. He shelled targets: by 2017 Bouygues Telecom hopes to recruit one million additional users in the fixed and as in the mobile. It is also preparing to participate in the auction for the frequencies 700 MHz, to be held end of 2015 to improve its network. It already offers 4G + in twenty cities in France and is testing 4G ++, even faster. Today, 28% of Bouygues Telecom mobile customers use 4G.


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