(a) The consolidated financial statements for the first half year 2019 have been prepared in accordance with IFRS 16 (Leases) and IFRIC Interpretation 23 (Uncertainty over Income Tax Treatment). The consolidated financial statements for first half year 2018 are presented proforma.

(b) See definitions in glossary on page 6.

Seasonal nature of business activity

Due to the highly seasonal nature of the Group’s businesses, operating losses are recorded each year during the 1st half year. As such, half year results are not representative of a full fiscal year.

Revenue

Consolidated revenue for the first half of 2019 amounted to €5.8 billion, up 9% compared to the first half of 2018 (+8% at constant scope and exchange rates). France accounted for €3.1 billion (+8% and +12% at constant scope and exchange rates) and the international units accounted for €2.7 billion (+10% and +4% at constant scope and exchange rates).

Roads:

Consolidated revenue from the Roads segment amounted to €5.1 billion in the first half of 2019, up 10% (+8% at constant scope and exchange rates):

• in a dynamic market, revenue in Mainland France was up 13% compared to the first half of 2018;
• revenue in Europe increased slightly to +3% (+1% at constant scope and exchange rates), boosted by the United Kingdom and Ireland;
• revenue in North America was up 16%. At constant scope and exchange rates, the change is +5%, with significant growth in the United States while Canada remains stable;
• in the Rest of the World (International excluding Europe and North America), revenue was down 1% and stable at constant scope and exchange rates. The decrease in Africa was offset by growth in the Asia-Pacific zone.

Railways and other Specialized Activities:

Revenue amounted to €0.8 billion in the first half of 2019, a 1% decrease. At constant scope and exchange rates, revenue is up 12%, driven by growth in the Railways segment at Colas Rail (+17%), while a 12% drop in business was recorded for the Networks segment at Spac. Following the sale of Smac to OpenGate Capital, finalized on May 20, 2019, the half-year contribution of the Waterproofing business to consolidated revenue was identical to that of the first quarter, i.e., €0.1 billion. 

Financial performance

Current operating profit for the first half of 2019 was -€136 million, a 31-million-euro improvement compared to the first half of 2018, and a 59-million-euro improvement excluding seasonal losses at Miller McAsphalt in January and February 2019, two months that were not consolidated in 2018.  

The Group’s good performance is the result of improved current operating profit for Roads in Mainland France, the first impact of Colas Rail's recovery measures in France and the sale of Smac.

The share of income from associates and joint ventures amounted to €25 million at the end of June 2019 compared to €17 million at the end of June 2018, due mainly to good results at Tipco Asphalt.

Net profit attributable to the Group totaled -€102 million in the first half of 2019, a 27-million-euro improvement compared to the first half of 2018.

Net surplus cash / net debt

Net debt at June 30, 2019 amounted to €1,544 million, compared to net debt of €1,303 million at the end of June 2018. The change from December 31, 2018 (net debt of €475 million) results from the usual seasonal nature of the businesses. 

Outlook

Work on hand at the end of June 2019 amounted to €9.9 billion, up 4% at constant exchange rates and excluding Smac. In Mainland France, work on hand excluding Smac is up 9% at €3.6 billion, whereas work on hand in the international and French Overseas units is up 5% with constant exchange rates, at €6.3 billion.

As far as revenue is concerned, the Roads segment is performing well, which should make it possible to offset the impact of the sale of Smac.

Current operating profit is expected to improve, boosted by strong business activity in France, the recovery in Colas Rail's profitability and the sale of Smac.

Condensed consolidated income statement for second quarter 2019