French contractor and concessions company Vinci has announced a revenue increase of 10% for the group, following the publication of the firm’s second quarter results.
Consolidated revenue totalled €21.7 billion (US$23.95 billion), excluding concession subsidiaries, in the first half of 2019, up 10% on an actual basis relative to the first half of 2018.
The company’s contracting revenue made up by the Vinci Construction, Vinci Energies and Eurovia businesses totalled €17.7 billion (US$19.54 billion), up 9.9% (6.5% like-for-like).
Vinci Construction’s revenue totalled €7.0 billion (US$7.73 billion), up 6.9% on an actual basis and up 6.1% like-for-like. Vinci reports that 54% of total revenue for the division was derived from French contracts.
Performance was said to vary from one region to another, with strong business levels in France due to the Grand Paris project. Outside France business levels reportedly rose in the United Kingdom, Central Europe and Africa.
The division’s specialist business areas, Soletanche Freyssinet and VINCI Construction Grands Projets, performed well outside France which, according to Vinci, offset weaker activity in its oil and gas-related businesses.
Vinci Energies’ revenue rose to €6.4 billion (US$7.06 billion) – up 8.8% on an actual basis or 4.6% like-for-like. Vinci said this was supported by the integration of recent acquisitions, in France and abroad, which contributed €224 million (US$247 million) to the revenue increase.
In France 46% of the division’s total revenue was generated. The increase was attributed to infrastructure and ICT (Information Communication Technologies) activities.
Outside of France revenue grew as a result of momentum in the integration of PrimeLine in the US and Wah Loon Engineering in Singapore, both acquired in 2018, and from the new acquisitions in 2019.
Eurovia’s revenue increased by 16.9% (10.0% like-for-like) to €4.4 billion (US$4.86 billion).
Momentum in the roadworks and urban development market remained strong. Outside of France, business levels were said to be buoyant in Germany, the United Kingdom and Canada.
The main factor for the growth in this sector was said to be the integration of the industrial and roadworks businesses acquired from Lane Construction in the US in late December 2018.
Overall company EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was €3.625 billion (US$4 billion) – an increase of 23.5% on the same period in 2018.