Bouygues exceeds operating profit expectations on strength in energy services

French conglomerate Bouygues reported ?better-than-expected first-quarter core earnings on Thursday, as strength ?in its energy ?services business ?Equans offset weaker ?performances across its media and telecoms arms.

The first-quarter operating profit rose by 11.6% compared to the previous year, to 77 millions euros ($90.4million), while sales fell 3.2% to 12,18 billion euros.

The?company polled analysts in a poll to estimate an operating profit between 66 and 67 million euros for revenue of 12,39 billion euros. According to the company, exchange rate effects had an 'negative impact' of 200 million euro on revenue.

Bouygues said that it also won a contract, as part of a group, to build a new rail line in Sweden. The total estimated value is?1.2 billion.

Bouygues, a family-owned company, is leading the consolidation of telecoms in France. In France, operators are 'engaged in intense pricing wars which have increased pressure on margins.

Bouygues, which bought La Poste 2024, is leading a French telecommunications consortium to purchase rival SFR for an enterprise value 20 billion euro.

Bouygues would acquire the majority of the assets under the proposed deal.?Iliad Free and Orange would then take the remaining 58%.

(source: Reuters)