France's Eiffage reports rise in first-quarter revenue

(Reuters) - French construction company Eiffage reported a 13.1% rise in first-quarter revenue on Wednesday, citing strong results from its motorway concessions and an increase in contracts.

Eiffage, which builds roads, tunnels and electric infrastructure, said it generated 4.9 billion euros ($5.39 billion) in revenue in the first three months of 2023 and saw 15% year-on-year growth in its order book to 19.9 billion euros.

Strikes and transport disruptions in France affected Eiffage positively as travellers were forced back onto the highways for lack of a better alternative, Jefferies said in a research note, mitigating the potentially negative impact of increased fuel prices.

APRR, France's second largest motorway operator by revenue, which Eiffage co-owns, reported a 5% year-on-year rise in toll revenue in its first-quarter results. The firm manages highways via a concession from the French state which should last until 2035.

Overall traffic on Eiffage's motorway concessions, measured in kilometres travelled, was up 1.8% at the end of March compared to a year earlier.

Eiffage confirmed its outlook for 2023, stating that it expects a further increase in operating income from contracting and concessions.

The firm in October became the main shareholder in Channel Tunnel operator Getlink, investing 1.2 billion euros to acquire an 18.8% stake and indicating that while it was not planning a takeover, it may increase its holding further.

Eiffage Chairman and CEO Benoit de Ruffray joined Getlink's board on April 27, and the investment will be incorporated into the group's net attributable income from the second quarter, it said.

Getlink more than doubled its revenue in the first quarter, driven by its new Eleclink unit, an underwater cable transferring electricity between France and Britain.

(This story has been corrected to show Benoit de Ruffray has already joined Getlink's board in paragraph 8)

($1 = 0.9084 euros)

(Reporting by Victor Goury-Laffont in Gdansk; Editing by Jan Harvey)