Bouygues Ups Telecoms Guidance, Signals more Investments

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May 20 Reuters French conglomerate Bouygues posted a smaller than expected firstquarter core loss on Thursday and raised the fullyear earnings guidance for its telecoms business, helped by market share gains in mobile and fixed services.

The group, which said its firstquarter results were not indicative of fullyear performance due to seasonality, reported a 7 increase in revenues, with gains across its operations.

Its current operating loss and margin were close to 2019 levels, before the pandemic struck.

Chief Financial Pascal Grange pointed to promising growth prospects for the construction business as governments roll out stimulus plans for their economies, telling analysts he expected some positive outcomes in the second half of 2021.

Berenberg analysts, however, dont expect stimulus plans to live up to the political rhetoric, and think the pandemic could continue to weigh on construction activities into next year.

Grange said the focus would be on the roads business at the groups Colas unit, particularly in Germany, northern Europe and America, as well as on energy and services.

In April, Les Echos reported Bouygues and SPIE were interested in Engies energy services unit.

This is indeed a case file that we are going to study as we want to strengthen our position in energy and services, Chief Executive Olivier Roussat told journalists.

Bouygues is also doubling down on its fastestgrowing telecoms business, with plans to become Frances secondlargest mobile…

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