THE NEW B.IG BRAND - Bouygues Telecom launches an offensive on the B2C market, confirms its 2024 guidance and reiterates its 2026 free cash flow target
October 02 2024 - 12:47PM
UK Regulatory
THE NEW B.IG BRAND - Bouygues Telecom launches an offensive on the
B2C market, confirms its 2024 guidance and reiterates its 2026 free
cash flow target
THE NEW B.IG BRAND
Bouygues Telecom launches an offensive on
the B2C market, confirms its 2024 guidance and reiterates its 2026
free cash flow target1
Paris, October 2, 2024
- On 7 October, Bouygues Telecom is to launch a new
brand called “B.IG” and a unique product range destined for
families.
Customers have changed their behaviour as a
result of rising inflation and the cost-of-living crisis. However,
connectivity remains an essential service that customers do not
want to give up, but they make trade-offs to optimise their
spending.
The B2C mobile market is undergoing change in
2024 due to a slowdown in volume growth and increased competitive
pressure since the second quarter, particularly in no minimum term
web-based products.
Bouygues Telecom has expanded and bolstered its
strengths in recent years thanks to a sustained investment
policy:
- Excellent fixed (no. 1 for WiFi and
fixed according to nPerf) and mobile connectivity (no. 2 in the
Arcep survey for the past 10 years, no. 1 in 2023 for mobile
Internet quality in dense areas)
- A strong portfolio of brands and
distribution channels (Bouygues Telecom, B.IG, B&YOU, NRJ
Mobile, Auchan Telecom, Cdiscount Mobile, Prompto, etc.)
- Quality customer support
- Fibre coverage well ahead of targets
(around 37 million FTTH premises expected by end-2024 and FTTO with
a network of 27,000 km of fibre)
Against this backdrop, and building on its
strengths, Bouygues Telecom is now launching a new strategy to win
new customers and to build loyalty in the B2C market:
- This strategy puts fixed at the
heart of growth
- It is aimed at the Household in its
entirety
- It addresses heightened customer
concerns about the cost of living by offering sustainable and
competitive prices
- It offers attractive bundles that
include fixed internet and several mobile lines to encourage
multi-line households
This new marketing strategy will lead to
profitable growth in a turbulent market.
Bouygues Telecom confirms its 2024 guidance and
its target of FCF before WCR of around €600 million1 in 2026, as
disclosed at its Capital Markets Day (CMD) in January 2021. It
plans for the coming years:
- Modest growth2 in sales
from services and in EBITDAaL in 2026 versus 2023, and lower than
the numbers outlined at the CMD, mainly as a result of an expected
decline in mobile ABPU and the impact in 2025 of the end of the
energy price hedging contracted in 2020 and 20213;
- Continued drive
to control costs and improve operational efficiency
(industrialisation of processes, use of artificial intelligence,
simplification of organisations, discontinuation of old
technologies);
- A reduction in
investment requirements from 2025 onwards compared with the path
presented at the CMD, due to the fact that Bouygues Telecom is
ahead of its schedule in terms of its coverage and quality targets,
and to the slower growth in mobile data usage in France.
Bouygues Telecom is confident in its ability to
generate significant cash flow on a sustainable basis and confirms
its guidance for FY 20244 and its target of FCF before
WCR of around €600m5 in 2026.
Press contacts:
Alexandra Berry: alberry@bouyguestelecom.fr - 01 39 26 62 42
About Bouygues Telecom
Bouygues Telecom is 90.5%-owned by the Bouygues group. As a
full-service electronic communications operator, Bouygues Telecom
stands out by providing its 28,9 million customers access to the
best technology has to offer on a daily basis. The very high
quality of its 5G and 4G network, which currently covers 99% of the
French population, combined with its fixed and Cloud services,
provide its customers with simple solutions, enabling them to fully
enjoy their digital lives, both in the home and at work, regardless
of their location. Bouygues Telecom’s 5G network now covers over
16,000 municipalities and over 80% of the French population. Since
2000, Bouygues Telecom has pursued an environmental policy that
aims to reconcile improved access to quality digital services for
all with a reduction in its environmental impact. In October 2022,
the Science Based Targets initiative (SBTi) endorsed Bouygues
Telecom's short-term greenhouse gas reduction targets for the
period 2021-2027. #OnEstFaitPourEtreEnsemble
www.corporate.bouyguestelecom.fr
1 Free cash flow after tax and interest expense and before WCR,
excluding the impact of changes in taxation, like-for-like
2 Like-for-like
3 Bouygues Telecom has hedged its energy prices until the end of
2024
4 An increase in sales billed to customers versus 2023, EBITDAaL of
above €2bn and gross capital expenditure excluding frequencies at
around €1.5bn
5 Free cash flow after tax and interest expense and before WCR,
excluding the impact of changes in taxation, like-for-like
- Bouygues Telecom launches an offensi
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