A N N U A L R E P O R T - Bouygues

MOBILE COMMUNICAT
Bouygues Telecom offers its consumer and corporate
customers a wide range of mobile phone services,
including voice and data, through i-mode TM ,
and data transmission.
the figures for 2004 should be adjusted
for mobile-to-mobile sales that
would have been billed if the system
had been introduced on 1 January
2004, equivalent to €761 million (at
2004 call termination rates).
Bouygues Telecom still has the best
customer mix in the industry with
68.4% of contract customers. It had
18.2% of the total base of contract
customers at year-end, compared with
18% at the end of 2004.
Highlights
• December: Bouygues Telecom signed up its
eight million th customer and announced its
intention to appeal against the competition
commission's decision to impose a €58 million
fine for alleged collusion.
• October: Philippe Montagner appointed
Chairman and CEO; first experiments with
mobile digital TV (DVB-H standard); launch of
broadband i-mode for the general public;
roll-out of the new Bouygues Telecom Club
concept.
• August: launch of the Emotion contract.
• May: introduction of high-speed services for
corporate customers using the Edge network
(coverage: 85% of the population).
• January: end of the “bill & keep” system
and introduction of mobile-to-mobile billing
between operators; launch of the Expression
contract.
Sales 2005
€4,537m
(+24%)*
* +2% with mobile-to-mobile billing at 2004 rates
EBITDA / Net sales from
network: 31.8%
(+3.3 points)*
* with mobile-to-mobile billing in 2004
Net profit (Group share)
€352m
(+8%)*
* +6% with mobile-to-mobile billing in 2004
IFRS
Employees
7,300
Sales target 2006
€4,580m
(+1%)
Bouygues Telecom moved into the
broadband era in 2005.
Its Edge network covers over 90%
of the French population. It provides
access to broadband i-mode, a comprehensive
set of mobile multimedia
services.
Bouygues Telecom moved past the
eight million customer mark in 2005.
Solid performance
in 2005
Sales
The broadband i-mode campaign
Consolidated sales amounted to
€4,537 million. For the first time in
2005, mobile phone operators billed
mobile-to-mobile call termination,
generating an additional €665 million
in sales for Bouygues Telecom.
To measure the true increase in sales,
Bouygues Telecom generated consolidated
net sales from network of
€4,240 million in 2005, a like-on-like
increase of 3.6%. Handset sales and
other items fell 11% to €297 million,
most of the decline being mainly
attributable to an exceptionally high
level of handset sales in the first
quarter of 2004.
The customer base expanded significantly,
the number of contract customers
at year-end (including
in the Caribbean)
increasing by 12.6%
to 5,563,000.
The number of customers
using prepaid
SIM cards rose by a
more moderate 1.5%.
Altogether, Bouygues
Telecom had 8,131 million
customers at end-2005
compared with 7,468 million
a year earlier, an
increase of 8.9%.
Voice traffic fell by 25 minutes per
customer per month to 263 minutes
per month. As the fall stemmed almost
entirely from unlimited contracts, and
in particular from lower consumption
of free airtime, it therefore had little
impact on sales.
The regulator imposed a 17.3% cut on
Bouygues Telecom’s mobile call termination
rates from 1 January 2005.
The price cut and the growing proportion
in the mix of mini-contracts which
generate less income explain the
reduction in average revenue per user
(ARPU) from €47.8 per month in
2004 (including mobileto-mobile
38