(Reuters) – France’s Bouygues (PA:) reported on Tuesday nine-month core revenue that beat forecasts, lifted by a powerful efficiency in its broadcast enterprise TF1 and development arm Colas and buyer positive aspects in its telecom division.

The Paris-based group posted a present working revenue of 1.14 billion euros ($1.3 billion), simply above analysts’ 1.13 billion estimate and rising above pre-pandemic ranges.

For a similar interval final 12 months, Bouygues posted a core revenue of simply 681 million euros.

Its development companies benefited from main highway contracts in Canada and Madagascar, whereas Bouygues Telecom added cell and broadband prospects, boosting gross sales.

The group, which is planning a merger of TF1 with its rival M6, reported positive aspects in viewers market share in key age brackets in addition to robust demand for TV promoting.

Chief Government Oliver Roussat advised reporters he was “somewhat assured” the French regulator would approve the tie-up when it guidelines subsequent October, the choice hanging partly on the character of the markets retained by the joint group.

The deliberate merger would mix France’s two greatest non-public broadcasters and see the joint entity management three-quarters of the nation’s TV promoting market.

EXPLODING COSTS

Analysts famous the “small” beats to consensus forecasts, however the group’s internet revenue was barely beneath estimates because it accounted for prices of operations similar to its deliberate acquisition of Equans.

Bouygues earlier in November agreed to purchase the companies arm of power group Engie in a deal that might be its largest ever acquisition and would make its new Energies & Companies section its largest enterprise division.

Roussat stated the corporate had additionally confronted spiralling uncooked supplies prices, from metal costs to freight from China.

“Prices for journeys have actually exploded,” he stated. “In some circumstances the prices have gone up eight or nine-fold.”

Nonetheless, Roussat stated Bouygues was in a position to soften the blow by passing on prices on its short-term contracts, whereas some longer-term offers included provisions for inflation.

($1 = 0.8790 euros)