By Michal Aleksandrowicz and Nathan Vifflin
(Reuters) -Bouygues on Friday posted 42% core profit growth that beat expectations, driven by new unit Equans, its telecom division and TV broadcaster TF1, lifting its shares as much as 3.3%.
The French construction-to-telecoms conglomerate posted 727 million euros ($796.50 million) in half-year current operating profit from activities on sales of 26.14 billion euros in a market environment that it said was marked by inflation, rising interest rates and currency volatility.
Its Equans division, which comprises the former services unit of Engie it bought in October, and the group's former Energies & Services arm, contributed almost 35% to group sales, helped by solid demand both in France and globally.
A strong 6% beat at Equans and better than expected business developments at Frances biggest private TV station TF1 and its Telecom unit contrasted with results below expectations at its construction division, road building unit Colas and real estate unit Immobilier, J.P. Morgan said in a note to clients.
Bouygues (EPA:BOUY)' construction businesses sales, contributing 46% to group half-year sales, rose 3% year-on-year to 12.2 billion euros.
Bouygues Immobilier had to deal with a challenging market environment due to higher interest rates, the group said. Residential property reservations were down 26% and its backlog was 21% lower than last year.
Bouygues confirmed its outlook both on group level and for its business units for 2023.
The shares were up 2.8% at 32.82 euros at 0845 GMT.
($1 = 0.9127 euros)