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French building, media conglomerate Bouygues says net profit rose 10 percent in 2007

French building, media conglomerate Bouygues says net profit rose 10 percent in 2007

Building-to-broadcasting conglomerate Bouygues SA on Wednesday reported a 10 percent rise in net profit in 2007, and said it expects revenue growth of 9 percent this year.
Net profit rose to euro1.38 billion (US$2.05 billion) from euro1.25 billion in 2006 on buoyant construction-related and telecommunications activities.
The figure was slightly below the euro1.40 billion (US$2.08 billion) that analysts had expected.
Bouygues said it will submit a euro1.50 (US$2.23) dividend for approval at its next annual meeting _ a 25 percent increase from last year.
Engineering group Alstom SA, in which Bouygues holds a 30.07 percent stake, contributed euro187 million (US$278 million) to net profit, Bouygues said.
Bouygues did not break out fourth-quarter figures. But based on a calculation using previously published nine-month data, net profit fell 18 percent to euro270 million (US$401 million) from euro331 million in the same period a year earlier.
Bouygues' operating profit grew 15 percent to euro2.18 billion (US$3.24 billion) in 2007. Full-year sales _ which the group reported two weeks ago _ rose 12 percent to euro29.61 billion (US$44.04 billion).
Bouygues said it expects 2008 sales to reach euro32.3 billion (US$48.04 billion), a 9 percent increase from last year.
Construction-related businesses reported sharp increases in operating profit: a 20 percent rise at Bouygues Construction; a 19 percent gain at Bouygues Immobilier; and a 20 percent increase at road-building unit Colas, which released its 2007 figures last week.
Operating profit at Bouygues Telecom, France's third-largest mobile-phone operator behind France Telecom SA's Orange and Vivendi SA's SFR, grew 26 percent to euro746 million (US$1.11 billion) _ helped by unlimited call plans.
As of Dec. 31, Bouygues Telecom counted 9.26 million customers, an increase of more than 6 percent on the previous year, giving the group confidence to forecast revenue growth of 4 percent in 2008.
Analysts say Bouygues Telecom is vulnerable to the entry of a fourth mobile-phone operator in France. The government is expected to reopen the bidding process for another mobile license.
Bouygues shares have fallen 9 percent over the past 12 months and closed Tuesday at euro50.85 (US$75.63).


Updated : 2021-05-15 18:43 GMT+08:00