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France's Eiffage reports 9-month revenue growth, confirms outlook

Published 08/11/2023, 17:44
Updated 08/11/2023, 18:26
© Reuters. FILE PHOTO: The logo of French construction group Eiffage is seen at a construction site in Paris, France, October 24, 2021. REUTERS/Sarah Meyssonnier/File Photo
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(Reuters) -French motorway operator and construction company Eiffage on Wednesday posted higher revenue for the nine months ended in September on strength in both its businesses and confirmed its full-year outlook.

Contracting revenue for the builder of roads, tunnels and electric infrastructure grew 8.5% to 13.11 billion euros ($14.04 billion) due to strong momentum in Europe excluding France, it said in a statement.

The Concessions unit, which collects tolls, rose 9.5% as its Autoroutes Paris-Rhin-Rhône (APRR) subsidiary, France's second and Europe's fourth motorway operator, saw increased traffic and passengers growth at airports.

Total revenue rose to 15.89 billion euros from 14.63 billion in the first nine months of 2022.

Eiffage had 3.5  billion euros in liquidity at the end of September, in comparison to 4.9 billion euros a year earlier, also as a result of about 1.7 billion euros in external growth investments over the past 12 months.

Eiffage also affirmed its guidance from February for a further increase in operating profit on ordinary activities in both units and its share of net profit, but this time without mentioning the former will be boosted by Getlink, in which Eiffage is the biggest shareholder.

In late October 2023, Eiffage crossed the 20% threshold in the Channel Tunnel operator’s share capital but repeated it does not intend to make a public offer.

The outlook confirmation comes despite a new tax on road operators unveiled in late September in the 2024 French budget bill.

The group said at that time the new levy would end up resulting in a decrease of around 117 million euros on the group's consolidated operating profit on ordinary activities.

Eiffage said it would explore all possible avenues to oppose the new tax.

© Reuters. FILE PHOTO: The logo of French construction group Eiffage is seen at a construction site in Paris, France, October 24, 2021. REUTERS/Sarah Meyssonnier/File Photo

French Finance Minister Bruno Le Maire said that highway operators would not be allowed to pass on the tax to clients.

($1 = 0.9337 euros)

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