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Bouygues unveils ambitious plan

January 18, 2021 12.18 Europe/London By Chris Dziadul

Bouygues Telecom has announced its strategic plan and targets for 2026.

Announced in its Capital Markets Day, it is based on the French telecoms market experiencing a phase of growth between 2021-2026, driven by FTTH and 5G and an increasing need for connectivity. Bouygues Telecom is aiming to become the second largest mobile operator; gain an additional three million FTTH customers, in the process doubling FTTH coverage from around 17 million premises at the end of 2020 to 35 million at the end of 2026, with an intermediate target of 27 million at the end of 2022; and double market share in fixed B2B and become of wholesale fixed player.

Bouygues Telecom is also targeting sales from services of more than €7 billion in 2026, compared to around €4.9 billion in 2020; EBITDA after leases of around €2.5 billion (approx. €1.5 billion); EBITDA after leases margin of around 35% (31%); and free cash flow of around €600 million (expected €250 million). The growth is expected to occur in two stages, namely 2021-2023 and 2024-2026.

In order to achieve the targets for 2026, the company will accelerate the roll-out of its FTTH and 5G infrastructure and invest in mobile radio capacity and fixed devices (modems, TV decoders, etc.) to keep pace with changes in use and a growing customer base. It estimates gross capex of around €1.5 billion a year between 2021 and 2025 and of around €1.4 billion in 2026. These annual amounts include the cost of gradually replacing Huawei equipment, with around 3,000 sites being converted by 2028.

Richard Viel, Bouygues Telecom’s CEO, said: “Bouygues Telecom’s strategy since 2015 has been an undisputed success. The business and financial targets set at the time have all been achieved or exceeded, making Bouygues Telecom the operator with the fastest sales growth on the French market and among the very first in Europe. The company is now entering a new phase of its development in order to strengthen its positioning as a full- service operator, strong on all connectivity markets. I am proud to unveil our new “Ambition 2026” strategic plan”.

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Related

Filed Under: Newsline Tagged With: Bouygues Telecom, France Edited: January 18, 2021 12:18

About Chris Dziadul

Chris is our Central & East Europe Editor. You can talk to Chris on Twitter @chrisdziadul or by email at cdziadul@broadbandtvnews.com

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