Industry Trend Analysis - Concessions Driven Momentum To Continue For Vinci - SEPT 2017

BMI View : Vinci's emphasis on building out its concessions business and energy contract segment against the broader backdrop of geographical diversification is likely to continue paying dividends for the company in the coming year. The company ' s strategy continues to bear fruit , as Vinci has maintained its momentum after a positive 2016 with solid half-year 2017 results, with strong performance in the company ' s concessions arm offsetting lacklustre results in its contracting segment.

In line with our view, Vinci has continued to build upon a positive 2016 with a solid performance in the first half of 2017 (see, ' Vinci Likely To Continue Modest Growth Run, ' May 25, 2017). EBITDA across the company's various business segments in H1 17 totalled EUR2.8bn, which represents a growth rate of 7.7% relative to H1 16. Other financial metrics were similarly positive thus far in 2017, with revenues reaching EUR18.5bn, up 5.5% in from H1 16, and Vinci's order book growing to EUR30.7bn, up 5%. EBITDA growth was driven largely by strong results in the company's concessions business in general and its airports segment in particular, with the former expanding by 10% year on year and the latter by 63%, a trend we expect to continue as Vinci continues to emphasise investment into this increasingly profitable business line.

Geographical Footprint Less Exposed To High Growth Markets

Positive Overall Performance
Financial Performance By Metric, EURmn
Source: BMI, Vinci

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