Vinci Net Income Rises to 1.32 Billion Euros

The Tip Desk · June 30, 2014 · 2 min read

The concessions branch drove growth while the contracting division faced challenges in the United Kingdom.

The infrastructure and construction company reported a consolidated net income attributable to the Group of 1,323 million euros for the first half of 2014, an increase of 575 million euros compared to the 748 million euros reported in the first half of 2013.

Growth was led by the concessions branch, which saw its operating result on activity (ROPA) rise 12.8% to 1,124 million euros. This performance was supported by a 4.1% increase in revenue for VINCI Autoroutes to 2,199 million euros, driven by a 2.8% rise in interurban network traffic. VINCI Concessions reported revenue of 654 million euros, aided by the integration of ANA and a 12.8% increase in activity at VINCI Airports at comparable structure.

In contrast, the contracting branch saw its ROPA fall 13.7% to 396 million euros. The company said this decline was due to losses at VINCI Construction UK and lower margins at VINCI Construction France, which offset positive international results outside of Europe. Within this branch, VINCI Energies saw its ROPA rise 1.1% to 237 million euros. Eurovia reported a negative ROPA of 45 million euros, though this was an improvement from a loss of 82 million euros in the first half of 2013.

Total revenue for the first half of 2014 was 18,464 million euros, a decrease of 1.3% at real structure. The company attributed this move to the deconsolidation of CFE in late 2013 and the loss of control of VINCI Park in June 2014.

Financial activity during the period included the sale of a 75% stake in VINCI Park, which generated a net cash flow of 1,675 million euros. The company also spent 780 million euros to buy back the participation held by Colas in Cofiroute. To manage dilution from capital increases, the company bought 14 million shares on the market for 768 million euros at an average price of 54.99 euros a share.

Consolidated net financial debt rose to 14.9 billion euros at the end of June 2014, compared to 14.1 billion euros on December 31, 2013. The company reported that its liquidity stood at 8.9 billion euros at the end of June 2014, down from 10.4 billion euros at the end of December 2013.