UPDATE 1-Bouygues says 2013 sales could fall on telecom unit
* Sees 2013 sales in 33.2-33.4 bln eur range
* Cuts telecom unit sales target to 4.6 bln eur
* Confirms sees profit improvement in H2 (Adds details, background)
PARIS, Aug 28 (Reuters) - Bouygues said group sales this year could be down slightly or flat compared with 2012 as the conglomerate cut its revenue goal for its struggling telecom unit on Wednesday.
The company, which previously forecast flat sales, confirmed profits would improve in the second half, however, and that Bouygues Telecom's earnings before interest, tax, depreciation and amortisation (EBITDA) would stabilise this year.
Bouygues Telecom, which last year began slashing costs and prices as it faced low-cost competition from Iliad's Free, cut its sales target for 2013 to 4.6 billion euros ($6.16 billion) from 4.85 billion to reflect the stronger growth of SIM-only sales compared with subscription plans.
France's third-largest mobile operator is also on track to exceed savings of 400 million euros in 2013, the group said.
Depending on its construction business, Bouygues said full-year sales could range between 33.2 billion euros, down 1 percent on 2012, and 33.4 billion, stable compared with the previous year.
Second-quarter net profit declined 5 percent to 230 million euros, while sales in the period were flat at 8.5 billion as strong construction orders offset weaker telecom revenue, Bouygues said in a statement.
The company said separately that it had won a 1.15 billion euro contract to build a 4.2-kilometre undersea road tunnel in Hong Kong.
Shares in Bouygues closed at 22.93 euros on Tuesday, giving the group a market capitalisation of around 7.5 billion. The shares have risen close to 25 percent in the last two months. ($1 = 0.7466 euros) (Reporting by Elena Berton and Gilles Guillaume; Editing by James Regan)