Vivendi 1st Half Revenue Strong Across Board Except At SFR

PARIS -(Dow Jones)- French media-to-telecoms conglomerate Vivendi, Thursday reported a 5.3% rise in first half revenue on strong growth in most divisions, with the exception of French mobile unit SFR.

Sales in the six months to June 30 reached EUR9.61 billion from EUR9.13 billion a year earlier. This was ahead of a poll of seven analysts by Dow Jones Newswires, who had put revenues at EUR9.55 billion.

Vivendi's telecoms units reported a mixed performance, however. Maroc Telecom sales jumped 13.2% to EUR993 million thanks to an increased customer base. But at SFR, France's second-largest mobile operator, revenues grew only 1.5% to EUR4.30 billion.

SFR, which is the group's largest revenue contributor, was hit by a reduction in regulated tariffs and in the price charged to customers for the new offers launched in April 2005, Vivendi said.

The company pulled out last week from a bidding process to buy a 54% stake in France Telecom's directories business owing to price considerations.

Universal Music Group, the world's largest music company, showed a slightly better-than-expected performance in the first half with 5.3% growth at EUR2.20 billion, owing to strong digital sales. According to press reports, UMG is currently biding for the music publishing arm of Bertelsmann.

Vivendi's games division continued to benefit from the success of its popular online video game World of Warcraft and posted a 24.4% rise at EUR296 million, while the group's pay-TV operations Canal Plus also showed a solid growth, +8% at 1.83 billion thanks to an increase in the subscribers portfolio.

At 0740 GMT, Vivendi shares were up EUR0.13 or 0.5% at EUR26.56.

- By Laetitia Fontaine, Dow Jones Newswires; +33 (0)1 40 17 17 40; laetitia.fontaine@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 27th July 2006