Bouygues Telecom is gaining momentum. After months of tough negotiations, the operator has formalized the acquisition of La Poste Mobile for 950 million eurosor 40 times its 2023 operating profit (21.3 million euros). This price, which may seem high, reflects the strategic importance of this acquisition for Bouygues Telecom.
Indeed, the integration of La Poste Mobile’s 2.3 million subscribers will allow the operator to cross the symbolic bar of 18 million mobile customers, thus bringing it closer to SFR, which now has less than 20 million subscribers.
The negotiations were particularly difficult due to the position of SFR, a 50% co-shareholder alongside the La Poste group. The operator in the red square, who had a right of pre-emption and a right of veto over the choice of buyer, finally obtained more advantageous conditions than those initially proposed.
The new agreement notably guarantees a 50% improvement in the usage contract for its network for the next two years, as well as a valuation representing 27 times the operating profit of La Poste Mobile, compared to 22 times in the initial proposal.
Bouygues Telecom in great shape
This acquisition comes in a particular context for Bouygues Telecom. If the operator shows good commercial momentum with 170,000 new mobile customers in the third quarter, its financial results show some signs of tension. Its turnover stabilized over the first nine months of the year, while its net profit fell by 5.7% to 263 million euros, compared to 279 million over the same period the previous year.
To maintain its growth and differentiate itself in a highly competitive market, Bouygues Telecom is increasing its innovative commercial initiatives. The operator recently launched B.IG, a new brand aimed at families, offering discounts on internet boxes depending on the number of mobile plans subscribed to within the household. Yesterday, the company introduced “Pure fiber”, a unique fiber offer on the market (focused solely on internet connectivity, without television or fixed telephone services), at 24 euros per month.
This aggressive strategy by Bouygues Telecom is intensifying as the telecoms sector must adapt to new consumption habits. Fixed telephony continues to decline (the equipment rate has fallen from 97% to 79% since 2004) and the emergence of streaming platforms and connected televisions is calling into question the traditional “triple play” model. For the first time in history, Youtube, for example, has become the leading consumption stream for the French.in front of the television.
In this changing landscape, the acquisition of La Poste Mobile appears to be a major strategic blow for Bouygues Telecom which will allow it, at worst, to consolidate its position against its competitors, and at best, to take the number 2 place from its rival SFR.
- Bouygues Telecom buys La Poste Mobile for 950 million euros, an operation which will be finalized by the end of 2024
- The acquisition allows the operator to reach 18.1 million mobile subscribers, thus getting closer to SFR
- Faced with a changing market, Bouygues Telecom is diversifying its offering with the launch of new innovative solutions such as B.IG and “Pure fiber”
