Artificial Intelligence

Bouygues: First-quarter 2022 Results

Published

2 years ago

May 12, 2022

GlobeNewswire

PARIS

12/05/2022

PRESS RELEASE

FIRST-QUARTER 2022 RESULTS

GROUP SALES UP 6%
BACKLOG IN THE CONSTRUCTION AND SERVICES BUSINESSES UP 4%
SOLID COMMERCIAL PERFORMANCE AT BOUYGUES TELECOM
PLANNED ACQUISITION OF EQUANS AND PROPOSED TF1-M6 MERGER ON SCHEDULE
LOW NET DEBT LEVEL

The Bouygues Board of Directors, chaired by Martin Bouygues, met on 11 May 2022 and finalized the financial statements for the first quarter of 2022.

KEY FIGURES

(€ million)	Q1 2022		Q1 2021		Change

Sales	8,204		7,742		+6%	^a
Current operating profit/(loss)	(77)		(77)		0
Current operating margin	–0.9%		–1.0%		+0.1 pts
Operating profit/(loss)	(93)	^b	(21)	^c	-72
Net profit/(loss) attributable to the Group	(131)		21		-152

Net surplus cash (+)/net debt (-) at end-March	(2,111)		(2,643)		+532

(a) Up 3% like-for-like and at constant exchange rates.
(b) Including net non-current charges of €16m.
(c) Including net non-current income of €56m.

Like each year, the Group’s first-quarter results are not indicative of full-year performance, mainly due to the highly seasonal nature of Colas’ businesses.

Sales totalled €8.2 billion, up 6%, or up 3% like-for-like and at constant exchange rates.
The current operating loss was stable versus the first quarter of 2021 at €77 million. The current operating margin was -0.9% in the first quarter of 2022 (versus -1.0% in the first quarter of 2021).
The operating loss was €93 million, which includes net non-current charges of €16 million unrelated to underlying business. These net non-current charges include essentially a capital gain linked to the sale of data centers by Bouygues Telecom (+€5 million) and costs related to ongoing projects (Equans acquisition and TF1-M6 merger) of -€5 million at Bouygues Construction, -€3 million at TF1 and
-€13 million at Bouygues SA. Net non-current income of €56 million was reported for first quarter of 2021, resulting mainly from the capital gain on the sale of data centers by Bouygues Telecom.
Bouygues reported a net loss attributable to the Group of €131 million, which does not include any contribution from Alstom. First quarter 2021 benefited from a €120 million contribution from Alstom.
Net debt was €2,111 million at end-March 2022 versus €2,643 million at end-March 2021, marking an improvement of €532 million. It notably included the fair value of pre-hedging interest-rate swaps linked to future bond issues. Net gearing¹ remained low for a first quarter at 16% (versus 22% at 31 March 2021).

OUTLOOK FOR 2022

The Group announced the following guidance when reporting full-year 2021 results on 24 February 2022:

Bouygues Telecom

Growth in sales from services estimated at around 5%.
Increase in EBITDA after Leases of around 7% in a context of higher expenditure due to the faster roll-out in fixed and improvements to mobile network capacity.
Gross capex confirmed at €1.5 billion (excluding 5G frequencies) in order to keep pace with growth in the mobile and fixed customer base, and in usage.

Group
In 2022, the Group is expecting a further increase in sales and current operating profit versus 2021.
After endorsement of Colas’ greenhouse gas emissions reduction targets in 2021, the other business segments are now aiming to receive SBTi ² endorsement of their decarbonization plans.

The above outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19, the acquisition of Equans and the TF1-M6 merger.

The Group remains very vigilant regarding the indirect consequences of the conflict between Russia and Ukraine. This outlook is subject to no further major deterioration of the current macroeconomic and geopolitical situation.

DETAILED ANALYSIS BY SECTOR OF ACTIVITY

CONSTRUCTION AND SERVICES BUSINESSES

The backlog in the construction and services businesses at end-March 2022 rose 4% to €34.6 billion, a high level that provides good visibility on future activity. This amount compares to the end-March 2021 backlog of €33.4 billion (at constant exchange rates and excluding principal disposals and acquisitions, the backlog was down 1%). International markets accounted for 65% of the backlog of Bouygues Construction and Colas at
end-March 2022, up 3 points versus end-March 2021.
The backlog at Colas rose to a record €12 billion, up 22%³ year-on-year. This was driven by Destia’s backlog and a solid commercial performance in the roads activities, in particular in France, Canada and the US, and in international rail activities. In the first quarter of 2022, Colas notably won the contract to build the first phase of Line 4 of the Cairo metro in Egypt (€650 million contract, of which €159 million was for Colas Rail).
The backlog at Bouygues Construction at end-March 2022 (€20.8 billion) was stable versus end-December 2021. Order intake at Bouygues Construction in the first quarter of 2022 rose by 8% year-on-year, driven by international markets and the normal course of business. The backlog was nonetheless 3% lower than
end-March 2021 due to a lower level of major contracts booked in the past year.
In a French residential property market still marked by strong customer demand, Bouygues Immobilier continued strengthening its land management, and benefited from a higher volume of building permits obtained in the first quarter, which have not yet translated into new housing units for sale. Commercial property customers remained cautious. Bouygues Immobilier’s backlog was down 13% overall versus end-March 2021. Reservations were down 11% over the same period.

The construction and services businesses reported sales of €5.9 billion in the first quarter of 2022, representing a 7% increase year-on-year (up 3% like-for-like and at constant exchange rates). This increase was driven by international sales, up 11% year-on-year, thanks to Colas and positive exchange rate effects.

Like each year, the current operating profit of the construction and services businesses is marked by the highly seasonal nature of Colas’ businesses. The current operating loss was €208 million in the first quarter of 2022. The current operating margin was -3.6% versus -3.5% in the first quarter of 2021. Bouygues Construction’s margin was slightly higher due to improved margin at Bouygues Energies & Services, while Bouygues Immobilier’s margin was impacted by a weak level of business, especially in commercial property (contribution in sales from commercial property of €13 million in the first quarter of 2022 versus €45 million in the first quarter of 2021).

TF1

In the first quarter of 2022, the TF1 group’s share of target audiences remained high at 33.1% among FRDA⁴ (down 0.6 points year-on-year) and at 29.8% among the 25-49 age group (down 0.6 points year-on-year).

In this context, TF1 reported sales of €561 million in the first quarter of 2022, an increase of 10% year-on-year (up 7% like-for-like and at constant exchange rates), benefiting from:

Stronger sales in the media segment, reflecting higher advertising revenue (up 5%), and helped by the gradual return of business sectors that were still impacted by the pandemic in 2021.
Robust sales growth at Newen, arising primarily from the acquisitions of studios in Spain and Germany in 2021.

Current operating profit was €60 million in the first quarter of 2022, a slight increase of €3 million year-on-year. This can be attributed to tight control of programming costs but also lower programme deliveries by Newen in the first quarter of 2022 due to a different programme delivery schedule from the first quarter of 2021, which was boosted by a catch-up effect. Consequently, the current operating margin edged down to 10.6%, which was 0.5 points lower year-on-year.

Keeping pace with changing trends in content viewing behavior, and the wider range of services for advertiser customers will contribute this year to strengthening the media segment, which is benefiting from sharp growth in new types of service. In a buoyant market, the contribution from Newen Studios to TF1’s operating margin will remain accretive in 2022.

At end-March 2022, TF1 considers that it was not directly impacted by the war between Russia and Ukraine. However, the development of the conflict could have an impact on the European economy and therefore indirectly on its business. As it demonstrated in 2020 and 2021, TF1 will be watchful as to the costs incurred and will adapt, all the while benefitting from solid growth drivers.

BOUYGUES TELECOM

Bouygues Telecom reported a solid commercial performance in the first quarter of 2022, in both mobile and fixed.
At end-March 2022, mobile plan customers excluding MtoM were 14.9 million, thanks to the gain of 97 thousand new customers in the first quarter.
In fixed, the company had 2.5 million FTTH customers at end-March 2022, thanks to 172 thousand new adds over the quarter. 55% of fixed customers now subscribe to an FTTH offer versus 42% a year earlier. The fixed customer base totalled 4.5 million customers, with 52 thousand new adds in the first quarter of 2022. The rate
of fiber roll-out continued to accelerate. The number of FTTH premises marketed was 25.7 million at
end-March 2022, versus 24.3 million at end-2021, in line with the Ambition 2026 strategic plan. As part of its innovation strategy, which includes offering state-of-the-art WiFi to customers, Bouygues Telecom became the first operator to announce WiFi 6E in France. The official launch was on 25 April 2022. Bouygues Telecom was awarded the number 1 spot for the quality of its WiFi in France in 2021 by the nPerf⁵ survey. Lastly, the Bbox Ultym fiber offer was enhanced by a new TV decoder.

Reflecting this strong commercial momentum, sales were €1.8 billion, up 3% versus the first quarter of 2021.
Sales from services rose 3%, boosted by a 6% increase in sales billed to customers. This was driven by growth in the mobile and fixed customer base and higher ABPU⁶ (mobile ABPU, restated for the impact of roaming, rose €0.3 year-on-year to €19.7 per customer per month, while fixed ABPU rose €0.6 year-on-year to €28.6 per customer per month). In contrast, sales from services were negatively impacted by lower incoming sales, affected by traffic (voice and text messaging) and by the mobile regulated termination rate. However, these incoming sales, by definition, have no impact on EBITDA after Leases.

Other sales rose 4% year-on-year, lifted by growth in handset sales.

EBITDA after Leases was €354 million, up €24 million versus the first quarter of 2021, a 7% increase in line with the annual target. As expected, the EBITDA after Leases margin recovered versus the first quarter of 2021
(up 1.1 points), on track for the steady margin improvement of the Ambition 2026 plan.

Current operating profit totalled €87 million, up €11 million year-on-year.
Operating profit was €92 million, which includes net non-current income of €5 million mainly linked to capital gains related to the sale of data centers. In the first quarter of 2021, net non-current income was €60 million, mostly due to capital gains on the sale of data centers.

Gross capex at end-March 2022 was €508 million, up €129 million year-on-year. Bouygues Telecom accelerated part of its annual investment program in the first quarter to secure the roll-out and improved quality of its 4G, 5G and fiber networks. This has no impact on the annual gross capex target. Disposals, linked to the sale of data centers, totalled €16 million in the first quarter of 2022 versus €110 million in the first quarter of 2021.

FINANCIAL SITUATION

The Group has a very robust financial structure.

The Group remained at a very high level of available cash, amounting to €18.6 billion (€20.4 billion at end-2021), comprising cash and equivalents (€4.7 billion) supplemented by undrawn medium- and long-term credit facilities (€13.9 billion, of which €6 billion corresponds to a syndicated loan signed in December 2021 for the acquisition of Equans).
Net debt at end-March 2022 was €2,111 million versus €941 million at end-December 2021 and €2,643 million at end-March 2021. The increase between end-December and end-March reflects the usual seasonal nature of business, higher net capex at Bouygues Telecom, share buybacks and positive fair-value on interest-rate swaps contracted to cover future bond issues by Bouygues SA.
Net gearing⁷ remained low at 16% (versus 7% at end-December 2021 and 22% at end-March 2021).

Considering the bond refinancing due in 2023, and the syndicated loan for the Equans acquisition to be refinanced through bond issuances, Bouygues SA took out interest-rate swaps with banking counterparties in July 2021, and between November 2021 and January 2022, to lock-in interest rates, and thereby protect itself against a possible rise in rates. The market value of these swaps (€439 million at 31 March 2022 versus €39 million at 31 December 2021) is booked as an asset in the balance sheet under “Financial instruments – Hedging of debt”, with an offsetting entry on the liabilities side under “Shareholders’ equity”. A “Deferred Tax Liability” has also been recognised, with the debit entry recorded in “Shareholders’ equity”, to take account of the tax treatment that will apply when the swaps are closed out. The market value of the swaps, and hence their impact on the Group’s net debt, fluctuates accordingly with interest rate changes.

During the first quarter of 2022, Bouygues renewed its medium- and long-term credit facilities as they expired, without financial covenants or rating clauses. Similarly, the syndicated loan signed in December 2021 with 16 banks, for €6 billion, has no financial covenants or rating clauses. This loan has a maturity of two years starting from the completion of the Equans acquisition and will be refinanced through bond issuances.

At end-March 2022, the average maturity of the Group’s bonds was 5.5 years and the average coupon on the bonds was 2.10%. The debt maturity schedule is evenly spread and takes account of the €800-million bond issue repaid on 9 February 2022.

The long-term credit ratings assigned to the Group by Moody’s and Standard & Poor’s, unchanged since 10 November 2021, are A3, stable outlook, and A-, CreditWatch Negative, respectively.

NON-FINANCIAL PERFORMANCE

In the first quarter of 2022, each business segment continued actions to promote sustainable and responsible development through a varied range of initiatives and projects, such as:

Bouygues Construction, a responsible and committed sustainable construction player, received in February the Top Employer France label from Top Employers Institute, an independent and international organization, for six years in a row, and the Top Employer Europe label for the fourth year, with additional certification for its entities in the UK, Switzerland, Poland and the Czech Republic. This certification recognizes for the initiatives implemented by Bouygues Construction over several years to provide the best possible working conditions for its employees through HR innovations. Bouygues Construction is the only construction company involved in the survey.
Bouygues Immobilier’s AL-FA residential development, situated at the heart of the “Les Fabriques” eco-neighbourhood in Marseille, will be constructed entirely with low-carbon concrete. Low-carbon concrete is produced from recycled materials and results in a 30-70% smaller carbon footprint compared with conventional concrete. The first wall was laid in January 2022.

In January, Colas and Saipol signed an agreement to decarbonize Colas’ truck fleet in France via Oleo100, a renewable energy fuel made from 100% French rapeseed. Not only does it reduce greenhouse-gas emissions by 60% compared to diesel, but it also cuts particulate emissions by up to 80%. Once fully rolled out, this initiative will avoid the emission of nearly 46,000 tons of CO₂ per year.

In March, TF1 unveiled the second session of “Expertes à la Une” as it strives towards a more inclusive society. Bringing together women experts from sectors such as health, medical research, justice, police, artificial intelligence and entrepreneurship, the programme aims to increase the proportion of women experts appearing on the TF1 and LCI news broadcasts. In 2021, the proportion of women experts consulted on air in the TF1 news studio (1pm, 8pm and weekend news) was 44%. Also, as announced in July 2021, TF1 launched in January 2022 the fully eco-friendly advertising fund “Ecofunding”. Brands contribute to this fund every time they advertise products or services with the Ademe⁸ label. TF1 then tops up the fund, which is then used to finance public-service campaigns raising awareness about sustainability and responsible consumption.

Bouygues Telecom has launched several initiatives since the start of the year, including a new rapid smartphone repair service in its stores – a service which is also available to non-Bouygues Telecom customers. It also unveiled source, the first responsible plan with no minimum term contract, aimed at encouraging digital sustainability. These are just two examples demonstrating how Bouygues Telecom is fostering a more responsible digital environment.

FINANCIAL CALENDAR

2 August 2022: first-half 2022 results (7.30am CET)
17 November 2022: nine-month 2022 results (7.30am CET)

The financial statements have been subject to a limited review by the statutory auditors and the corresponding report has been issued.

You can find the full financial statements and notes to the financial statements on www.bouygues.com/results.

The results presentation conference call for analysts will start at 9am (CET) on 12 May 2022.
Details on how to connect are available on www.bouygues.com.

The results presentation will be available before the conference call starts
on www.bouygues.com/results.

ABOUT BOUYGUES
Bouygues is a diversified services group operating in over 80 countries with 124,600 employees all working to make life better every day. Its business activities in construction (Bouygues Construction, Bouygues Immobilier, Colas); media (TF1) and telecoms (Bouygues Telecom) are able to drive growth since they all satisfy constantly changing and essential needs.

INVESTORS AND ANALYSTS CONTACT:
[email protected] • Tel.: +33 (0)1 44 20 10 79

PRESS CONTACT:
[email protected] • Tel.: +33 (0)1 44 20 12 01

BOUYGUES SA • 32 avenue Hoche • 75378 Paris CEDEX 08 • bouygues.com

FIRST-QUARTER 2022 BUSINESS ACTIVITY

BACKLOG IN CONSTRUCTION AND SERVICES BUSINESSES

(€ million)	End-March 2022	End-March 2021	Change

Bouygues Construction	20,838	21,544	-3%
Bouygues Immobilier	1,717	1,970	-13%
Colas	12,039	9,854	+22%
Total	34,594	33,368	+4%

BOUYGUES CONSTRUCTION ORDER INTAKE

(€ million)	Q1 2022	Q1 2021	Change

France	1,168	1,142	+2%
International	1,399	1,241	+13%
Total	2,567	2,383	+8%

BOUYGUES IMMOBILIER RESERVATIONS

(€ million)	Q1 2022	Q1 2021	Change

Residential property	395	443	-11%
Commercial property	5	9	-42%
Total	400	452	-11%

COLAS BACKLOG

(€ million)	End-March 2022	End-March 2021	Change

Mainland France	3,372	3,348	+1%
International and French overseas territories	8,667	6,506	+33%
Total	12,039	9,854	+22%

TF1 AUDIENCE SHARE ^a

(%)	End-March 2022	End-March 2021	Change

Total	33.1%	33.7%	-0.6 pts

(a) Source Médiamétrie – Women under 50 who are purchasing decision-makers.

BOUYGUES TELECOM CUSTOMER BASE

(‘000)	End-March 2022	End-Dec 2021	Change

Mobile customer base excl. MtoM	15,151	15,067	+84
Mobile plan base excl. MtoM	14,871	14,774	+97
Total mobile customers	22,088	21,847	+241
FTTH customers	2,491	2,318	+172
Total fixed customers	4,492	4,441	+52

FIRST-QUARTER 2022 FINANCIAL PERFORMANCE

GROUP CONDENSED CONSOLIDATED INCOME STATEMENT

(€ million)	Q1 2022		Q1 2021		Change

Sales	8,204		7,742		+6%	^a
Current operating profit/(loss)	(77)		(77)		0
Other operating income and expenses	(16)	^b	56	^c	-72
Operating profit/(loss)	(93)		(21)		-72
Cost of net debt	(35)		(39)		+4
Interest expense on lease obligations	(15)		(13)		-2
Other financial income and expenses	3		(8)		+11
Income tax	27		16		+11
Share of net profits of joint ventures and associates	(3)		105		-108
o/w Alstom	0		120		–120
Net profit from continuing operations	(116)		40		-156
Net profit attributable to non-controlling interests	(15)		(19)		+4
Net profit/(loss) attributable to the Group	(131)		21		-152

(a) Up 3% like-for-like and at constant exchange rates.
(b) Including non-current charges of €5m at Bouygues Construction, of €3m at TF1 and of €13m at Bouygues SA; and non-current income of €5m at Bouygues Telecom.
(c) Including non-current charges of €4m at Bouygues Immobilier; and non-current income of €60m at Bouygues Telecom.

CALCULATION OF GROUP EBITDA AFTER LEASES

(€ million)	Q1 2022	Q1 2021	Change

Current operating profit/(loss)	(77)	(77)	0
Interest expense on lease obligations	(15)	(13)	-2
Net charges for depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets	478	462	+16
Charges to provisions and other impairment losses, net of reversals due to utilisation	(8)	7	-15
Reversals of unutilised provisions and impairment losses and other	(55)	(54)	-1
Group EBITDA after Leases ᵃ	323	325	-2

(a) See glossary for definitions.

GROUP SALES BY SECTOR OF ACTIVITY

(€ million)	Q1 2022	Q1 2021	Change	Forex effect	Scope effect	Lfl & constant fx ᶜ

Construction and services businesses ᵃ	5,851	5,491	+7%	-2%	-2%	+3%
o/w Bouygues Construction	3,077	3,058	+1%	–2%	0%	–2%
o/w Bouygues Immobilier	399	452	–12%	0%	0%	–12%
o/w Colas	2,406	2,020	+19%	–2%	–6%	+12%
TF1	561	510	+10%	0%	-3%	+7%
Bouygues Telecom	1,796	1,743	+3%	0%	0%	+3%
Bouygues SA and other	48	51	nm	–	–	nm
Intra-Group eliminations ᵇ	(83)	(92)	nm	–	–	nm
Group sales	8,204	7,742	+6%	-1%	-2%	+3%
o/w France	5,236	5,076	+3%	0%	0%	+3%
o/w international	2,968	2,666	+11%	–4%	–5%	+3%

(a) Total of the sales contributions (after eliminations within the construction businesses).
(b) Including intra-Group eliminations of the construction businesses.
(c) Like-for-like and at constant exchange rates.

CONTRIBUTION TO GROUP EBITDA AFTER LEASES BY SECTOR OF ACTIVITY

(€ million)	Q1 2022	Q1 2021	Change

Construction and services businesses	(166)	(128)	-38
o/w Bouygues Construction	84	116	–32
o/w Bouygues Immobilier	8	1	+7
o/w Colas	(258)	(245)	–13
TF1	147	128	+19
Bouygues Telecom	354	330	+24
Bouygues SA and other	(12)	(5)	-7
Group EBITDA after Leases ᵃ	323	325	-2

(a) See glossary for definitions.

CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY

(€ million)	Q1 2022	Q1 2021	Change

Construction and services businesses	(208)	(192)	-16
o/w Bouygues Construction	85	81	+4
o/w Bouygues Immobilier	0	4	–4
o/w Colas	(293)	(277)	–16
TF1	60	57	+3
Bouygues Telecom	87	76	+11
Bouygues SA and other	(16)	(18)	+2
Group current operating profit/(loss)	(77)	(77)	0

CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACIVITY

(€ million)	Q1 2022		Q1 2021		Change

Construction and services businesses	(213)		(196)		-17
o/w Bouygues Construction	80		81		–1
o/w Bouygues Immobilier	0		0		0
o/w Colas	(293)		(277)		–16
TF1	57		57		0
Bouygues Telecom	92		136		-44
Bouygues SA and other	(29)		(18)		-11
Group operating profit	(93)	^a	(21)	^b	-72

(a) Including non-current charges of €5m at Bouygues Construction, of €3m at TF1 and of €13m at Bouygues SA; and non-current income of €5m at Bouygues Telecom.
(b) Including non-current charges of €4m at Bouygues Immobilier; and non-current income of €60m at Bouygues Telecom.

CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP

(€ million)	Q1 2022	Q1 2021	Change

Construction and services businesses	(161)	(170)	+9
o/w Bouygues Construction	65	57	+8
o/w Bouygues Immobilier	(1)	(7)	+6
o/w Colas	(225)	(220)	–5
TF1	15	15	0
Bouygues Telecom	54	80	-26
Alstom	0	120	-120
Bouygues SA and other	(39)	(24)	-15
Net profit/(loss) attributable to the Group	(131)	21	-152

NET SURPLUS CASH (+)/NET DEBT (-) BY BUSINESS SEGMENT

(€ million)	End-March 2022		End-Dec 2021		Change

Bouygues Construction	2,898		3,521		-623
Bouygues Immobilier	(298)		(142)		-156
Colas	(603)		(33)		-570
TF1	378		198		+180
Bouygues Telecom	(2,037)		(1,734)		-303
Bouygues SA and other	(2,449)	^a	(2,751)	^a	+302
Net surplus cash (+)/net debt (-)	(2,111)	^a	(941)	^a	-1,170
Current and non-current lease obligations	(2,004)		(1,835)		-169

(a) Includes fair value of swaps.

CONTRIBUTION TO GROUP NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY

(€ million)	Q1 2022	Q1 2021	Change

Construction and services businesses	20	28	-8
o/w Bouygues Construction	7	16	–9
o/w Bouygues Immobilier	0	1	–1
o/w Colas	13	11	+2
TF1	66	49	+17
Bouygues Telecom	492	269	+223
Bouygues SA and other	0	1	-1
Group net capital expenditure	578	347	+231

CONTRIBUTION TO GROUP FREE CASH FLOW BY SECTOR OF ACTIVITY

(€ million)	Q1 2022	Q1 2021	Change

Construction and services businesses	(202)	(179)	-23
o/w Bouygues Construction	106	91	+15
o/w Bouygues Immobilier	0	4	–4
o/w Colas	(308)	(274)	–34
TF1	59	63	-4
Bouygues Telecom	(156)	34	-190
Bouygues SA and other	(46)	(31)	-15
Group free cash flow ᵃ	(345)	(113)	-232

(a) See glossary for definitions.

GLOSSARY

4G consumption: data consumed on 4G cellular networks, excluding Wi-Fi.

4G users: customers who have used the 4G network during the last three months (Arcep definition).

ABPU (Average Billing Per User):
– In the mobile segment, it is equal to the total of mobile sales billed to customers (BtoC and BtoB) divided by the average number of customers over the period. It excludes MtoM SIM cards and free SIM cards.
– In the fixed segment, it is equal to the total of fixed sales billed to customers (excluding BtoB) divided by the average number of customers over the period.

BtoB (business to business): when one business makes a commercial transaction with another.

Backlog (Bouygues Construction, Colas): the amount of work still to be done on projects for which a firm order has been taken, i.e. the contract has been signed and has taken effect (after notice to proceed has been issued and suspensory clauses have been lifted).

Backlog (Bouygues Immobilier): sales outstanding from notarised sales plus total sales from signed reservations that have still to be notarised.
Under IFRS 11, Bouygues Immobilier’s backlog does not include sales from reservations taken via companies accounted for by the equity method (co-promotion companies where there is joint control).

Construction businesses: Bouygues Construction, Bouygues Immobilier and Colas.

EBITDA after Leases: current operating profit after taking account of the interest expense on lease obligations, before (i) net charges for depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets, (ii) net charges to provisions and other impairment losses and (iii) effects of acquisitions of control or losses of control. Those effects relate to the impact of remeasuring previously-held interests or retained interests.

EBITDA margin after Leases (Bouygues Telecom): EBITDA after Leases as a proportion of sales from services.

Free cash flow: net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations. It is calculated before changes in working capital requirements (WCR) related to operating activities and excluding 5G frequencies.

Free cash flow after WCR: net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations, and after changes in working capital requirements (WCR) related to operating activities.
It is calculated after changes in working capital requirements (WCR) related to operating activities and excluding 5G frequencies.

Fixed churn: the total number of cancellations in a given month, divided by the total number of subscribers at the end of the previous month.

FTTH (Fibre to the Home): optical fibre from the central office (where the operator’s transmission equipment is installed) all the way to homes or business premises (Arcep definition).

FTTH penetration rate: the FTTH share of the total fixed subscriber base (the number of FTTH customers divided by the total number of fixed customers).

FTTH premises secured: the horizontal deployed, being deployed or ordered up to the concentration point.

FTTH premises marketed: the connectable sockets, i.e. the horizontal and vertical deployed and connected via the concentration point.

Growth in sales like-for-like and at constant exchange rates:
– at constant exchange rates: change after translating foreign-currency sales for the current period at the exchange rates for the comparative period;
– on a like-for-like basis: change in sales for the periods compared, adjusted as follows:

for acquisitions, by deducting from the current period those sales of the acquired entity that have no equivalent during the comparative period;
for divestments, by deducting from the comparative period those sales of the divested entity that have no equivalent during the current period.

Mobile churn: the total number of cancellations in a given month, divided by the total number of subscribers at the end of the previous month.

MtoM: machine to machine communication. This refers to direct communication between machines or smart devices or between smart devices and people via an information system using mobile communications networks, generally without human intervention.

Net surplus cash/(net debt): the aggregate of cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments. Net surplus cash/(net debt) does not include non-current and current lease obligations. A positive figure represents net surplus cash and a negative figure represents net debt. The main components of change in net debt are presented in Note 7 to the consolidated financial statements at 31 March 2022, available at bouygues.com.

Order intake (Bouygues Construction, Colas): a project is included under order intake when the contract has been signed and has taken effect (the notice to proceed has been issued and all suspensory clauses have been lifted) and the financing has been arranged. The amount recorded corresponds to the sales the project will generate.

PIN: Public-Initiative Network.

Reservations by value (Bouygues Immobilier): the € amount of the value of properties reserved over a given period.
– Residential properties: the sum of the value of unit and block reservation contracts signed by customers and approved by Bouygues Immobilier, minus registered cancellations.
– Commercial properties: these are registered as reservations on notarised sale.
For co-promotion companies:

if Bouygues Immobilier has exclusive control over the co-promotion company (full consolidation), 100% of amounts are included in reservations;
if joint control is exercised (the company is accounted for by the equity method), commercial activity is recorded according to the amount of the equity interest in the co-promotion company.

Sales from services (Bouygues Telecom) comprise:
– Sales billed to customers, which include:
– In Mobile:

For BtoC customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services.
For BtoB customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services, plus sales from business services.
Machine-To-Machine (MtoM) sales.
Visitor roaming sales.
Sales generated with Mobile Virtual Network Operators (MVNOs).

In Fixed:

For BtoC customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire.
For BtoB customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire, plus sales from business services.
Sales from bulk sales to other fixed line operators.

– Sales from incoming Voice and Texts.
– Spreading of handset subsidies over the projected life of the customer account, required to comply with IFRS 15.
– Capitalisation of connection fee sales, which is then spread over the projected life of the customer account.

Other sales (Bouygues Telecom): difference between Bouygues Telecom’s total sales and sales from services.
It comprises:
– sales from handsets, accessories and other;

– roaming sales;
– non-telecom services (construction of sites or installation of FTTH lines);

– co-financing of advertising.

Very-high-speed: subscriptions with peak downstream speeds higher or equal to 30 Mbit/s. Includes FTTH, FTTLA, 4G box and VDSL2 subscriptions (Arcep definition).

Wholesale: wholesale market for telecoms operators.

1 Net debt/shareholders’ equity.
2 Science Based Target initiative.
3 Up 12% at constant exchange rates and excluding principal disposals and acquisitions.
4 Women under 50 who are purchasing decision-makers.
5 The nPerf institute accurately determines internet connection capacities, through its measurement tool of the same name
6 ABPU including BTBD.
7 Net debt/shareholders’ equity.
8 The French environment and energy management agency.

Attachment

PR_financial-results_Bouygues_Q1 2022 (002)

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Artificial Intelligence

CUBE acquires global regulatory intelligence businesses from Thomson Reuters

Published

5 mins ago

May 17, 2024

CISION (PR Newswire)

LONDON, May 17, 2024 /PRNewswire/ — CUBE, a global leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), announces today its acquisition of the Thomson Reuters Regulatory Intelligence and Oden products and businesses.

The acquisition of these global businesses represents a major step forward in CUBE’s growth plans. It will deliver significant scale across many of the world’s leading and systemically important financial institutions. CUBE’s existing global customer base will be expanded to total approximately 1,000 customers in banking, insurance, asset and investment management, payments and adjacent regulated industries.
CUBE’s global employees will expand to 600, of which close to 250 are highly qualified regulatory subject matter experts, legal and compliance professionals.
Ben Richmond, founder and CEO of CUBE said: “Thomson Reuters is known to be the biggest and best in the industry for providing regulatory expert analysis and subject matter expertise, alongside world-leading journalism and news. The combination of CUBE’s purpose-built AI, with the years of content curated by Thomson Reuters Regulatory Intelligence and Oden expert analysts, will accelerate innovation. Together, we will deliver regulatory transformation capabilities for our global customers that could only have been imagined before.”
Richmond continues: “This combination will provide tremendous scale and depth across CUBE’s regulatory content and technology. It is a significant step toward creating an industry-defining regulatory compliance and risk platform that will benefit all customers and elevate the industry as a whole.”
Through this acquisition, CUBE will provide an expanded and comprehensive selection of specialized regulatory intelligence and regulatory change services, committed to excellence, quality, and highly contextualised and meaningful regulatory content for customers. By combining cutting-edge technology and subject matter expertise at scale CUBE will set a new bar for the industry in regulatory automation and content.
Chris Maguire, General Manager, Risk and Fraud, Corporates, Thomson Reuters said: “It was clear to us that CUBE had established itself as a leading regulatory intelligence provider for global enterprise clients in the financial services and insurance sectors. We wanted to ensure our customers and employees could work with an organisation that would continue to innovate and significantly invest in solutions like Thomson Reuters Regulatory Intelligence and Oden. We are working tirelessly to ensure a seamless and value-enhancing transition for customers and employees, and we are looking forward to working with the CUBE team during this transition.”
Christopher Fielding, Hg, said: “We’re delighted to further extend our market reach, bringing in two high quality and complementary global businesses to the CUBE platform.”
Thomas Martin, Hg, added: “We see these acquisitions as enabling further innovation in the regulatory intelligence and change management sector, leading to strengthened demand for these quality solutions across the globe.”
The terms of the transaction will not be disclosed.
About CUBE
CUBE provides a highly comprehensive and robust source of classified, and meaningful AI-driven regulatory data to power its Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM) solutions. CUBE’s purpose-built regulatory technology including its AI engine (RegBrain) and software platform (RegPlatform) tracks, analyses, and monitors laws, rules, and regulations in every country and in every published language to create an always up-to-date regulatory footprint that transforms visibility and compliance capability for customers across the globe.
With operations across Europe, North America, Canada, Asia, and Australia, CUBE serves a diverse and global base of customers and partners including the largest financial institutions in the world who leverage CUBE’s platform to streamline their complex regulatory intelligence and change management processes.
Following the strategic partnership with Hg in March 2024, CUBE announced the acquisition of US-based Reg-Room in May 2024.
About Hg
Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers.
This industry is characterised by digitisation trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.
With a vast European network and strong presence across North America, Hg’s 400 employees and around $70 billion in funds under management support a portfolio of around 50 businesses, worth over $140 billion aggregate enterprise value, with over 110,000 employees, consistently growing revenues at more than 20%.
About Regulatory Intelligence
Regulatory Intelligence is a proactive, connected, and comprehensive solution that tracks and analyses regulatory changes within ~2,000 regulatory bodies and rulebooks for more than 20 countries. It enables banking, financial services, and insurance (BFSI) sectors to manage exposure to operational, regulatory, and compliance risk.
About Oden
Oden State Rules and Regulations (SR&R), Oden Policy Terminator/Sentry PT, and OdenTrack provide repositories and automated solutions for complying with state rules and regulations on the provisioning of Personal and Business Insurance in the US.

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Artificial Intelligence

Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan

Published

12 hours ago

May 16, 2024

CISION (PR Newswire)

The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”

With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
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FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/cayman-enterprise-city-publishes-socio-economic-impact-assessment-by-economist-and-leading-advisor-on-the-caribbean-marla-dukharan-302148206.html

Artificial Intelligence

Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event

Published

12 hours ago

May 16, 2024

CISION (PR Newswire)

The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.

“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]

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