Bouygues Defies Forecasts, Bolsters Telecom Stake Amid Political Headwinds

Bouygues reported stronger operating profit than anticipated, driven by robust construction activities despite political challenges affecting its media sector. The company aims to consolidate France’s telecom market by collaborating with Orange and Iliad to acquire Altice France's assets, though their offer was initially rejected.

Bouygues, the renowned French conglomerate, reported a better than expected operating profit for the first nine months of the year, bolstered by resilient construction operations even amid France's political unrest affecting its media arm.

The company announced an operating profit of 1.81 billion euros from January to September, surpassing the predicted 1.77 billion euros by analysts. Bouygues is spearheading a movement to consolidate the French telecom market by attempting to acquire parts of Altice France along with Orange and Iliad, despite an initial rejection of their 17-billion-euro offer.

The group's sales were in line with expectations, reaching 41.86 billion euros, thanks to a robust construction order book that offset weaker media advertising revenue. Despite this, Bouygues-owned TF1 recently projected lower margins in 2025 due to political uncertainty. Additionally, Bouygues secured a significant civil works role in the UK's Sizewell C nuclear project, aligning future growth prospects.

(With inputs from agencies.)