Xavier Huillard, chairman and CEO of Vinci
French-based concessions and construction company Vinci has announced that consolidated revenue totalled €18.5 billion (US$21.9 billion) in the first half of 2020, down 14.9% on an actual basis relative to the first half of 2019 due to the impact of Covid-19.
The company’s half yearly financial report also revealed that revenue fell more sharply in France than elsewhere, and the proportion of revenue generated outside France was 49% compared to 44% in the first half of 2019.
Xavier Huillard, Vinci’s Chairman and CEO, commented that, “In the circumstances, Vinci’s financial performance in 2020 will be well below that achieved in 2019.
“However, we intend to focus beyond 2020, mobilised to support the resumption of economic activity in regions in which we play an essential role in both Concessions and Contracting.”
Contracting revenue totalled €15.8 billion (US$18.7 billion), down 13% like-for-like compared to the first half of 2019. After a strong start to the year, business levels were affected by coronavirus, although the extent differed between countries. In France, business levels were very low in building and public works for around a month after the lockdown was introduced. The situation improved from the second half of April.
In the first half as a whole, revenue was down 21%. In many other countries, business levels remained close to normal, the situation in each country reflecting the measures introduced by local public health authorities. Revenue outside France was close to stable in the first half, only down 3% like-for-like.
At Vinci Construction, revenue totalled €5.8 billion (US$6.8 billion), down 17% on an actual basis and like-for-like. In France - which accounts for 47% of the total - revenue fell 27% since the vast majority of worksites shut down for more than a month. That resumption took place quicker on public works sites than on building sites, which are more affected by social distancing rules.
Outside France (which accounts for 53% of the total revenue), the decline in revenue was limited to 6% since it was possible to maintain business activity in many countries, at least partially, with situations varying from country to country.
The company’s airports division saw revenue of €0.6 billion (US$0.7 billion), down 56% like-for-like, as activity across all airports in the network stopped almost entirely in the second quarter after most countries introduced bans on commercial flights.
Xavier Huillard added, “After a good start to the year, continuing the trend seen in 2019, the Group’s business levels and earnings were badly affected by the Covid-19 pandemic. The crisis had a particularly severe impact in France in all business lines after lockdown measures were introduced on 17 March.”