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Bouygues reports profit slump, but shares jump

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(Globalpost/GlobalPost)

Construction, television and telecoms group Bouygues reported a 32.0-percent plunge in net profit for the first half on Wednesday, but this was better than expected and the shares shot up 6.41 percent.

Net profit fell on a 12-month comparison to 188 million euros ($251.5 million), hit by a first-quarter loss at the TF1 television channel and in the telecom sector.

Sales fell by 2.0 percent to 15.21 billion euros.

The company said that a consensus by 20 analysts had been for a net profit of 165 million euros and sales of 15.23 billion euros.

The group said that it now expected sales for the year to total 32.2-33.4 billion euros from 33.45 billion euros targeted previously.

The downgrading reflected mainly the performance at the mobile telephone arm Bouygues Telecom which lowered it sales target to 4.6 billion euros from 4.85 billion euros.

Meanwhile Bouygues Construction said that it had won two big contracts in Hong Kong and in the United States worth together slightly more than 1.5 billion euros.

The price of shares in the group jumped by 6.41 percent to 24.40 euros.

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http://www.globalpost.com/dispatch/news/afp/130828/bouygues-reports-profit-slump-shares-jump