Vinci SA

PAR:DG

Earnings Call Transcript 2018-Q1

[Operator]

Welcome to the VINCI conference call. I will now hand over to Mr. Arnaud Palliez, Director of Investor Relations and Financial Communication for VINCI. Sir, please go ahead.

[Arnaud Palliez, Senior Vice]

Yes, thank you. Good evening, everyone. I'm pleased to welcome you to this call. I hope that you have all received our press release on first quarter revenue and business activity. I will run you through the main highlights of our Q1 revenue performance before turning over the floor to your questions.Business indicators for the first quarter of 2018 confirm the positive trends seen last year and support the group's forecast of higher revenue and income for the full year. Q1 '18 consolidated revenue totaled EUR 8.8 billion and was up 4.9% on an actual basis, which includes the negative 1.8% currency impact caused by the depreciation of most currencies against the euro, the main negative impacts coming from the U.S. dollar and the British pound, and the net positive 4.5% impact of the changes in consolidation scope. Mostly outside France, we saw the main one in Concessions, the Brazilian airport of Salvador de Bahia; in Contracting, Horlemann, Infratek; Eitech and PrimeLine at VINCI Energies; and Seymour Whyte in Australia at VINCI Construction.Therefore, Q1 like-for-like revenue was up 2.2%, of which plus 3.6% in France, where despite adverse weather conditions, all Contracting and Concession business lines posted solid revenue growth.Plus 0.1% outside France, where higher airport passenger numbers and a good performance at VINCI Energies more than offset the adverse revenue impact from the completion of several major contracts and offshore weather conditions in Europe than in Q1 '17.In total, with the integration of the most recent acquisition, Q1 '18 international sales rose 6.4% to EUR 3.6 billion, making up 41% of total group revenues.Now looking at the evolution of the different business lines. Q1 '18 Concessions reported revenue was up 6.1% to EUR 1.5 billion or plus 5.9% on a like-for-like basis.At VINCI Autoroutes, Q1 sales were up by 3.4% to EUR 1.1 billion. The intercity network suffered serious disruption in Q1 '18 with traffic adversely affected by bad weather, several exceptional snowfalls and protest. Nevertheless, traffic levels rose 2%, while price effects and the change in the light/heavy vehicle mix also boosted VINCI Autoroutes' revenue by 1.4%.Traffic growth on a constant net rev basis dropped down into a 1.8% rise in light vehicle traffic and a 3.1% increase in heavy vehicle traffic. Positive calendar effects with the Christmas school holidays stretching further into January 2018 than in 2017 and with the start of the Easter weekend taking place in March this year had positive impact on light vehicle traffic. Heavy goods traffic grew 3.1% despite there being 1 less business day than in Q1 '17.For the full year, traffic growth at VINCI Autoroutes is expected to be similar to that seen in 2017 of plus 1.7% provided that fuel prices do not rise further.You were already aware of the strong growth in VINCI Airports' passenger traffic following its release on the 12th of April. At the airports managed by VINCI Airports, passenger numbers continued to grow rapidly in the first quarter at 11.6% with double-digit increases in Portugal, France, Cambodia, Chile and Japan. The slight fall in traffic at the airport in the Dominican Republic, down 2.9%, was caused by the bankruptcy of the local airline.VINCI Airports' first quarter reported revenue was up 11.7% at EUR 342 million. It integrated for the first time the contribution from the Salvador de Bahia airport in Brazil, where passenger traffic was up 6% in Q1. The U.S. dollar decline against the euro had, however, a 4.1% adverse impact on VINCI Airports' revenue. For the full year, VINCI Airports is likely to see weaker growth in passenger numbers than in 2017 because of a high base for comparison.Q1 '18 revenue of other concessions was up 31% to EUR 66 million. VINCI Highway's revenue includes a EUR 20 million contribution from LAMSAC, which operates the Lima ring road in Peru, where traffic level increased by 3.4% in Q1 '18. Construction of that road's second section is complete, and it will open when administrative authorization is granted. Revenue at VINCI Highways was boosted by the buildup of business at MESEA, which has maintained the Tours-Bordeaux high-speed rail line since the 2nd July of 2017.The picture is also positive for the Contracting business, where Q1 '18 revenue was up 4.9% on an actual basis to EUR 7.2 billion despite harsher weather conditions in Europe than in Q1 '17. Like-for-like revenue rose by 1.8% with a confirmed upturn in France, plus 4.9% like-for-like, and a slight 1.8% like-for-like decline outside France.Let's start with VINCI Energies. Q1 '18 revenue was up 12.8% on an actual basis to EUR 2.8 billion. Acquisitions contributed EUR 266 million to the increase in revenue, including the impact of acquisitions made in 2017, the largest of which were Acuntia, Horlemann and Infratek; and this completed in 2018, mainly Eitech and PrimeLine. Most of these acquisitions were outside France.For VINCI Energies, like-for-like increase in Q1 '18 revenue was plus 3.1%. The return to organic growth in France was confirmed in the first quarter of 2018 with plus 4.2% like-for-like increase in revenue to EUR 1.4 billion. Outside France, Q1 '18 revenue amounted also to EUR 1.4 billion, up 1.9% like-for-like. Organic growth was held back by poor weather conditions, which particularly affected infrastructure activities in Germany.VINCI Energies' order book at the end of March 2018 amounted to EUR 8.1 billion, up 18% over 12 months and up 21% since the start of the year. It represents almost 9 months of VINCI Energies' average business activity.Now Eurovia. Eurovia, as you know, is more exposed to seasonal variations than the group's other business lines. And so its first quarter figures are not representative of its full year performance. In March, Eurovia's business was particularly hard hit by adverse weather conditions in Europe. Despite this, its Q1 '18 total revenue of EUR 1.4 billion was up 1.5% on an actual basis and up 2.5% like-for-like.In France, despite the winter being harsher than in the first quarter of 2017, revenue was EUR 902 million, up 5.5% on an actual basis and up 5.3% like-for-like. Outside France, revenue totaled EUR 505 million, down 5% actual and down 2.2% like-for-like. Activity in Central Europe and Canada remained buoyant in first quarter but fell slightly in Germany and in the U.K. because of poor weather conditions.Eurovia's order book at 31st March 2018, amounted to EUR 6.3 billion, up 5% over 12 months and up 10% since the start of the year. That figure represents more than 9 months of Eurovia's average business activity.Lastly, VINCI Construction. VINCI Construction's Q1 '18 revenue was stable at EUR 3.1 billion, plus 0.2% both actual and like-for-like.France showed solid growth with Q1 '18 revenue up 5.2% like-for-like to EUR 1.6 billion. VINCI Construction France business levels rose in both building and civil engineering. Outside France, revenue totaled EUR 1.4 billion, down 4.8% on both an actual and like-for-like basis. This revenue includes EUR 86 million contribution from Seymour Whyte acquired in October 2017, which offset adverse currency effects.The completion of several major projects, including the Yamal 1 in Siberia, and the delayed start of new projects explain the decline in revenue seen by VINCI Construction Grands Projets and Entrepose -- VINCI Construction major project and Entrepose. Business levels also fell at Sogea Satom and VINCI plc but remained firm in Central Europe and the Pacific region.VINCI Construction's order book at the end of March amounted to EUR 17.4 billion, stable year-on-year and up 3% since the start of 2018. It represents around 15 months of VINCI Construction's average business activity.Total order intake in contracting for the quarter increased by 13% at VINCI Energies and 14% at Eurovia but fell 19% at VINCI Construction because of a high base of comparison and the phasing of certain contracts. As a result, the group backlog stood at EUR 31.8 billion at the end of March, up 5% year-on-year and up 8% since the start of this year of 2018.A quick word on VINCI Immobilier. That continued to show good commercial momentum in residential property with 20% more units reserved during the quarter than for the same period last year. However, revenue fell because of delays with starting new construction projects and slower-than-expected progress with certain existing ones, mainly due to poor weather conditions in early 2018.At 31st March 2018, VINCI's consolidated net financial debt was EUR 15.6 billion, up EUR 1.1 billion compared with the end of March last year.Standard & Poor's has recently upgraded its outlook on VINCI's long-term credit rating from neutral to positive, emphasizing the group's solid business activities and financial position.In conclusion, Q1 revenue trends were positive, supporting the group's forecast of higher revenue and income for the full year.Thank you for your attention, and we are now ready to take your questions.

[Operator]

[Operator Instructions] We have a question from Stephanie D'Ath, RBC.

[Stephanie Fabienne D'Ath, Analyst]

My first question is regarding the order intake, which was weak at Construction. You explained it by the high base of comparison and the phasing of certain contracts. Could you please maybe explain the underlying trends you've seen in the markets and maybe comment if you can, please, on the margins of the projects you've been booking in the order book? And then my second question relates to the French strikes in air and trains. Have you seen any impact on your road network so far? And is there any upside from that perspective on the traffic?

[Arnaud Palliez, Senior Vice]

Thank you, Stephanie. So regarding the order intake, the decline of the order intake -- the decrease of the order intake in Construction, when we analyze the detail, it is mostly explained by France because when you look at the order intake in Europe and in the international operations outside Europe, the order intake was up in Q1. So in France, the explanation is first based on the fact that as you remember last year in Q1, we recorded a significant amount of contracts linked to the Grand Paris. And this year, this is less. So last year, we had around 900 -- a bit more than EUR 900 million of contracting to the Grand Paris. And this year, only a bit less than EUR 300 million of new contracts. So the difference is around EUR 650 million at this level. So that's the first explanation. Then the second explanation is still in France. When we look at the order intake for VINCI Construction France, in the Paris region, this order intake was down in Q1 in the building segment. The explanation is that as today, the order book is at a very high level in the Paris region. We now need to focus on delivering a good quality of execution on these projects. And we focus more on this than we need new projects in the Paris region. So that's the explanation with -- we can add also that in the regions, we had a rather moderate order intake for VINCI Construction France in Q1. I don't comment on the margin for this order intake. We usually don't. Then on the second question, regarding the impact of the strike in France, it's a bit too early to have a very precise assessment of this impact because these strikes, they started in April. So not in the Q1. So there was no impact in Q1. We are going to see, but it's true that the traffic on motorways in Cofiroute had maybe a bit -- a bit negatively impacted by the opening of new high-speed train lines. And the fact that there is a strike probably will improve the numbers at this level -- the traffic numbers at this level.

[Stephanie Fabienne D'Ath, Analyst]

And from past experience, could you maybe comment if like how long the strikes could last and what has in the past been the tailwinds on the motorway traffic?

[Arnaud Palliez, Senior Vice]

The last massive strikes in the French railways was in 1995. At this time, we are not the owner of the ASF, and so it's a bit difficult to have -- to draw lessons from past experience.

[Operator]

The next question comes from Mehdi Boudokhane, Raymond James.

[Mehdi Boudokhane, Research Analyst]

[Audio Gap] traffic, can we have an idea -- yes, do you hear me?

[Arnaud Palliez, Senior Vice]

We didn't hear you. Can you repeat the...

[Mehdi Boudokhane, Research Analyst]

Okay. Do you hear me now?

[Arnaud Palliez, Senior Vice]

Yes, it's better.

[Mehdi Boudokhane, Research Analyst]

Okay, sorry. So 2 questions, first on motorway traffic. Can we have an idea of the underlying growth, excluding your calendar effects? Also, another question on traffic. Was there any negative impact coming from higher fuel prices in the first quarter of the year? And last one, on VINCI Construction, can we have an update on your exposure to Africa? You notably mentioned weak performance at Sogea and Entrepose. Can we have more color on that?

[Arnaud Palliez, Senior Vice]

I'm going to start with Africa because, in fact, in Africa, the outlook is much more positive than it was a few months ago. So this recovery was not visible in Q1. But when we look at the order intake in Africa, the pre-backlog and so on, clearly the outlook is better and not -- we are not so concerned today about Africa. Then on motorway traffic, so if we look at the calendar impacts -- let me first start on fuel prices. I think that there was no major change in Q1. The increase last year of the fuel prices was gradual, month after month. And so I don't think any -- we have not at least major, significant impact coming from fuel prices in Q1. Regarding the calendar effect, the Easter weekend has brought -- okay, so just 1 second.

[Operator]

The next question comes from...

[Arnaud Palliez, Senior Vice]

Mehdi, sorry, Mehdi, sorry. Yes, on traffic, basically, the calendar effects are positive overall on light vehicle traffic. You have the Easter weekend that started in March this year. You have also -- that's the only real calendar effect. The rest, this is from phasing of some school holidays. So positive for light vehicles, negative for trucks with 1 less working day that took place in March. And this has been more or less offset by some negative impact coming from the snowfalls and the demonstrations we had on some part of our motorways with summer that have blocked these motorways for...

[Mehdi Boudokhane, Research Analyst]

Okay. So the 2% you had actually in the first quarter is kind of underlying?

[Arnaud Palliez, Senior Vice]

Yes.

[Operator]

The next question comes from Eric Lemarie, Bryan Granier.

[Eric A. Lemarie, Research Analyst]

I've got 3 questions, if I may. Regarding the French roadworks market, what's your view on the market currently? Do you think that 5% organic growth observed in Q1 in the roadworks business in France is sustainable for the rest of the year? That's my first question. My second question regarding VINCI Energies, how do you explain the return of the growth -- of the organic growth in France? Is it just because of a better macro environment? Or is due in particular to better industrial production trends? Is there any particular segment which performs better? And the last question, if I may, regarding the order book change, could you give us maybe the like-for-like change for the order book by division?

[Arnaud Palliez, Senior Vice]

Okay. Let's start on Eurovia. So basically, you know the general economic environment. This is that we have economic recovery, and this economic recovery is visible for Eurovia. Transposing then the Q1 like-for-like growth over the full year, it's a bit difficult because as you know, Eurovia, you have a very significant impact coming from the seasonality. And so we cannot transpose Q1 number for the full year. But we expect some growth -- like-for-like growth for the full year at Eurovia. In France, we are at [indiscernible] for the municipalities, and we are seeing recoveries in public spending led by these municipalities and the investments made by these municipalities, which is good for Eurovia's business. So overall, yes, the -- we are in -- we confirm the upturn for Eurovia. And it's also the case in most of the international locations of Eurovia. And for VINCI Energies, the answer is more or less the same. Activity is better in France and also generally speaking in Europe. And so it explains why we have some like-for-like sales growth in France. In Germany, the growth was a bit -- in Germany, it was not the case in Q1 because of weather conditions. But also in Germany, the outlook for the full year is positive in terms of the business activity for VINCI Energies.

[Eric A. Lemarie, Research Analyst]

Okay. But for this..

[Arnaud Palliez, Senior Vice]

Regarding the order book -- sorry, Eric?

[Eric A. Lemarie, Research Analyst]

Yes. So just for VINCI Energies, if we look at the different segments, industry infrastructures, building services or ITC (sic) [ ICT ], which one -- I don't know if you know which one percentages is the -- if infrastructure was better than industry. I don't know if there is any difference on that.

[Arnaud Palliez, Senior Vice]

We have given the indication in the press release. So the -- in Q1, the strongest growth was [indiscernible] 21%. But you have some -- in infrastructure, you have significant impact coming from the acquisitions. 16% in ICT, 13% in industry and 3% in the building service sector. The acquisitions were mostly in ICT and infrastructure. All the segments are seeing some positive trends. Regarding the impact of the acquisitions on the order book, the main impact is, of course, on VINCI Energies. And for VINCI Energies, the order book, excluding acquisition, was up by 6% in Q1. At Eurovia, the increase was 5%. So the same as the real -- the actual increase because no significant acquisition on Eurovia. And on construction, there was the impact of Seymour Whyte. And excluding the impact, the order book was slightly down by 2%. So overall, the group order book on a like-for-like basis, at constant parameter, was up 1%.

[Eric A. Lemarie, Research Analyst]

Okay. Do you have any currency impact there? Or do you include the currency impact in the figures?

[Arnaud Palliez, Senior Vice]

Yes, yes, yes, we do. There are some currency impacts, yes. In each business, yes, there are some currency impacts but rather modest compared with the impact of the acquisitions. So the currency impact on the total order book in Q1 was negative by a bit more than EUR 40 million.

[Operator]

The next question comes from Elodie Rall, JPMorgan.

[Elodie Rall, Research Analyst]

Just 2 questions, please. Can you first try to quantify for us, if you can, the weather impact on Q1 Contracting revenues and if you think you can recover that in the next Q2 -- in the next quarter or so? And the same for real estate, where you mentioned that weather had impacted as well revenues. And my second question is on the VINCI Construction outside of France. You mentioned delayed start in new projects. Can you give a bit of color about that and when you expect those projects to start, please?

[Arnaud Palliez, Senior Vice]

Okay. Elodie, so first on weather impact, you can imagine that it is very difficult to quantify. There was some bad weather in more or less in each month. But it's true that -- and still, I think that March clearly -- there was a deterioration of our numbers in March following the weather impact. So that's what I can say at this stage, but it's impossible to give you a precise quantification. And we think that things, of course, will improve. Keep in mind also that because it's winter, usually our Q1 number, there are -- the Q1 at VINCI Contracting operation is the weakest quarter. Sorry, Elodie, we are looking for some details. So maybe on your second question, basically what happened in Contracting, especially in the major project division and also at VINCI Construction France is that we have had the completion of some big projects such as Yamal in Russia. The TAP project for Entrepose is also today generating a weaker revenue than before. We have also -- so we have different big projects in Hong Kong also from the metro in Hong Kong. These projects are coming to their end. They generate lower revenue. And for the time being, the new projects such as, for example, the Grand Paris project, they have not reached yet their peak in term of activity. We have also some project for Entrepose. On Entrepose, I had mentioned Yamal and the TAP project that are coming to their end. At the same time, we have some project in Bangladesh on which the start is relatively slow. So to explain why you don't -- we are in a transition phase. And the new projects we won last year, they are not yet generating their peak in term of business activity.

[Operator]

The next question comes from Marcin Wojtal, Bank of America.

[Marcin Karol Wojtal, Analyst]

Arnaud, in answers to one of the previous questions on Africa, you mentioned pre-backlog for that region. I'm just wondering if you have a pre-backlog number for the entire group. And perhaps you can comment at least qualitatively if there are some important projects that you have been provisionally awarded but those are not yet in the backlog. And when would you expect to include some of those projects? I'm alluding, for example, to the HS2 project in the U.K. I believe there was a press release some time ago, but I don't think that it is in the backlog already.

[Arnaud Palliez, Senior Vice]

Thank you, Marcin. If it's your only question, I'm going to answer it. So in the pre-backlog, first, we have 2 major projects on which today we are in what we call an ECI contract. So it's early contracting involvement. So it's just a contract on which you record the value, the amount of the engineering phase of the studies. But you don't record the order book, the whole amount of the project. So this is the case for HS2, you're right. And for Femern, today backlog for these 2 big projects -- for Femern, the tunnel between Denmark and Germany, for these 2 big projects, we don't have any significant amount in our backlog of revenue today. Just the value of the Femern, we communicated in the press release our total value of this project of EUR 3.4 billion. That's not [ our expect ] in this project, but that's to give you an indication of the size of the project. And then it's true that when you look at the pre-backlog, we have several projects in Africa on which we had some press release in Q1 but that are not yet accounted in the order book. For example, the [indiscernible] -storage hydroelectric plant in Morocco, the installation of the electrical grid in Senegal, the dam in Kenya, the stadium of Yamoussoukro in Ivory Coast. So all these together, it will preserve probably a bit more EUR 500 million of contracts that have been announced in Africa that's not yet recorded. And that's most of the backlog today -- the pre-backlog today. We can also mention the pipeline in Canada for Spiecapag for Entrepose. That was announced at the end of last year, and that is still not in the backlog.

[Operator]

The next question comes from Guillermo Fernández, Deutsche Bank.

[Guillermo Fernández-Gao Sánchez de Nieva]

Arnaud, I have 2 questions, 2 of them in airports because the rest of them has already been answered. The first one is you mentioned your guidance that you expect traffic to soften materially from previous year growth. I'm focusing on Portugal in particular. Through the last year, traffic was up about 16%. The capacity intentions by airlines points to a growth. For example, in Lisbon Airport, about 10% for the year. You think this is doable? It's a reasonable number for airport traffic to still be above double digit? And the second one, I don't know if you can say something, but if you could give us some color on any magnitude on your most recent acquisition, at least what's the level of, I don't know, revenues or anything that would help us model a bit the new acquisition of airports that you announced last week.

[Arnaud Palliez, Senior Vice]

Okay. Thank you, Guillermo. So basically on airport passenger traffic, we haven't changed our guidance. We consider because of the high base for comparison began to be difficult to see this year the same type of traffic growth than the one we had last year. So for the time being, we continue to have very strong growth, especially in Portugal, you're right. But at this stage of the year, we are rather cautious. And the basis -- again, the basis for comparison is why that we expect to show a slowdown compared with the growth rate that we have disclosed last year. And then regarding airports worldwide, so we are committed with the seller [indiscernible] not to disclose a financial number. So it's a bit difficult for us to give more details than what is in the -- what was in the press release before the closing of this operation. And the closing should take place before year-end. The only thing -- the only indication we can give you, this is the level of manage/renew. So for the whole airports, the whole portfolio, the level of manage/renew last year was around USD 200 million.

[Operator]

The next question comes from Vittorio Carelli, Santander.

[Vittorio Carelli, Equity Analyst]

The first 2 question is regarding the airport traffic. If you could provide us the capacity growth for the summer season of the -- in all the network that you manage, so to give us a sort of guidance on what to expect for the summer season. The second question is related to the decline in revenues of Contracting business outside France. You mentioned that there is the completion of several major projects and the delay of some others that are expected to be into the revenue soon. How do we look at the margin impact about this stage now to any possible entrance of the new ones in the coming months? And the last one is related to -- I'm surprised. I mean, you have almost EUR 10 billion in liquidity. The balance sheet, which is almost double, triple market cap, I mean, which is the return you are achieving on this cash and balance sheet at the moment, please?

[Arnaud Palliez, Senior Vice]

So first of all, on the capacity forecast for our airports, the summer capacity is difficult for us to answer. This is numbers that are given by the different airlines. We don't have a consolidated number for all our airports. And it's difficult to see today what will be the increase in airline capacity this summer on our different airports. So I cannot answer. The only anything we can say is that yes, when you look at the statements made by the airlines, usually they forecast an increase in their capacity for the summer. For Aena, I don't have, again, a number for Aena, consolidated number for all the airports of Aena, sorry. Margin in construction, that -- again, that's not the purpose of this call, to comment on margin evolution. We just comment on the business activity, business trend. So we will -- you will get more details about margin evolution when we will report our H1 results at the end of July, on the 27th of July. Then on the cash, your approach is -- your number is wrong. In the press release, we mentioned around EUR 10 billion of available liquidity. It's the cash plus the undrawn credit lines. If you look at our cash, it's lower. It was at 3 point-- the managed cash at the group level was at EUR 3.8 billion or EUR 3.9 billion at the end of March. And what is important regarding the cap of the revenue we get from this cash, as you know, we hedge on our balance sheet. We hedge our cash position with debt at floating rate. So it's neutral. We have the same amount of debt at floating rate in front of this cash position.

[Operator]

The next question comes from Olivia Peters, Macquarie.

[Olivia Peters]

Just 2 very quick questions, please. Based on what you said in terms of the timing of projects like Grand Paris, for example, is it fair to assume given the size of them that there will be operating at kind of full throttle next year? And then my second question is just on LAMSAC. Have you been assured that you'll get the approval for the extension through in 2018? It's obviously already been delayed from 2017. So just some clarity on that, please.

[Arnaud Palliez, Senior Vice]

Olivia, first of all, can you repeat your first question because there was a word I didn't catch.

[Olivia Peters]

The projects that you mentioned like Grand Paris which aren't operating at the full -- aren't ramping up, will they be fully ramped up by next year? Is that a fair enough assumption?

[Arnaud Palliez, Senior Vice]

Yes. So Olivia, at this point, yes, on the contracts, we recorded for the Grand Paris in last year, in 2017. So most of them on the Line 15 South, yes. Next year, they will be up full speed. This project has to be completed before, I think, 2024, if I'm right. So yes, it means that next year, we will be at full speed. Regarding LAMSAC -- so regarding LAMSAC, the construction works are completed. It's now all about administrative delays. And we hope that in the coming months, this will be -- we will get all the authorizations. So you will see the section 2 opening in 2018. Again, it doesn't depend on us. So it's [indiscernible] that have to sign the papers. And it takes a bit more time than initially expected. But regarding the construction work, everything is completed and we are ready to operate.

[Operator]

We currently have no question. [Operator Instructions] We have a question from [ Miguel Gregor ], [ UBC ].

[Unknown Analyst]

I just have a question on the financial investments that you did on Q1. Can you give us a little bit more color on the breakdown of the EUR 1 billion? If I remember correctly, the PrimeLine, I think, had around EUR 470 million. So can you just give us a little bit of color on this EUR 1 billion?

[Arnaud Palliez, Senior Vice]

We haven't communicated a transaction value on PrimeLine. So I don't know where you got this estimate. And...

[Unknown Analyst]

The revenues were around EUR 400 million?

[Arnaud Palliez, Senior Vice]

The revenues, okay. Yes, sorry. Yes, the revenues, yes, you're right. But regarding the value of this transaction, I don't think that we will give detail before H1. We are also committed with the seller. So I'm not giving a valuation. So I cannot, today, give you a precise breakdown of the EUR 1 billion between different items.

[Unknown Analyst]

But is it the majority to PrimeLine or...

[Arnaud Palliez, Senior Vice]

Again, we cannot answer. So I cannot give you any signal or any indication regarding this.

[Operator]

The next question comes from [ Ines Merla ], [ CNCK].

[Unknown Analyst]

I was wondering if you could maybe give us any guidance on the revenue for the full year or the EBITDA for the full year?

[Arnaud Palliez, Senior Vice]

No, I'm sorry. The only guidance we give is that we increase -- we expect some increase both in revenue and in operating and net profit for the full year, but that's the only guidance we give at this stage of the year. We don't quantify more this guidance today.

[Operator]

We have no further question. [Operator Instructions]

[Arnaud Palliez, Senior Vice]

Okay. If there are no further questions...

[Operator]

Sorry, we have a question. [Operator Instructions]

[Nicolas Mora, Analyst of Transport and Infrastructure]

Arnaud, it's Nicolas Mora. Just a quick one to end the call. Actually, do you -- it's more on -- a few questions on airports basically. On AERODOM, you mentioned the bankruptcy of a local airline. The capacity outlook is a bit weak for the next couple of months. Should we expect further weakness into the next couple of quarters from that? Second on Salvador, would you mind giving us a revenue number for Q1? Because that's the first time consolidation of the airports. And then just to fine tune numbers, can you give us the cutoff date when you actually started consolidating PrimeLine and Eitech in VINCI Energies? Because there is some decently large animals, so they impact a little bit the numbers. And last one, can you give us a feel for where your pipeline on M&A is for Energies? So you've continued to do some bolt-ons early in the year. Is the pipeline as good as it was last year? Just a bit of a feel for where you are on bolt-on M&A for Energies.

[Arnaud Palliez, Senior Vice]

Okay. Thank you, Nicolas. I'm going to start with Eitech and PrimeLine. So Eitech, we started to consolidate more or less at the beginning of January. And for PrimeLine, it was mid-March. Then regarding the outlook for airline traffic -- for passenger traffic in Dominican Republic, I don't have more precise indication. So I cannot give you an outlook for the full year regarding traffic evolution in Dominican Republic. The impact -- the increase in revenue coming from Salvador de Bahia Airport in Brazil in Q1 was EUR 13 billion, 1-3 -- million, sorry, EUR 13 million. Did I miss one of your question, sorry?

[Nicolas Mora, Analyst of Transport and Infrastructure]

No, the last one was then on a bit of color on the M&A for Energies. Yes, you've continued to do a few deals. Just after an exceptional year in 2017, just wondering if you were going to slow down a little bit.

[Arnaud Palliez, Senior Vice]

No, VINCI Energies, there are still acquisition opportunities all over the world. But we cannot give precise indication about the future acquisition pace for VINCI Energies. Again, it's opportunities. And you can be successful or not on these opportunities. It's impossible to be more precise on that.

[Operator]

We currently have no further question. Back to you for the conclusion, Mr. Palliez.

[Arnaud Palliez, Senior Vice]

Okay. Thank you very much for attending this call. The next publication will be on the 12th of July of airport traffic for Q2. And then on the 27th of July, we will release our H1 results. So of course, we look forward to see you before that and to talk with you before that, but that's the next publication. So thank you very much for your participation, and have a nice evening. Thank you. Goodbye.

[Operator]

Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.