Vivendi Second Quarter Profits Up 12%
France's Vivendi has reported a 12% rise in second-quarter profit thanks to strong growth at TV broadcaster Canal Plus and videogame unit Vivendi Games - offsetting lower profits at the company's music division and stagnant profits at the mobile networks.
Net profit for the second quarter rose to €667 million (US$978.6 million) from €594 million a year earlier. The company reported last month that sales grew 15% to €5.99 billion from €5.2 billion a year earlier.
Jean-Bernard Lévy, Chairman of Vivendi’commented “Vivendi’s performance during the second quarter 2008 reflects the quality and dynamism of our business units in a tighter economic environment. Vivendi closed two strategic transactions: the acquisition of Neuf Cegetel by SFR and the creation of Activision Blizzard, the global leader in video games publishing, in which Vivendi holds a 54% stake.
Vivendi completed these two major transactions under conditions rendering a rights issue, announced in December 2007, unnecessary.
As a result of the first half 2008 earnings, Vivendi confirms its full year outlook, expecting to deliver profit growth similar to 2007, at constant perimeter (other than Neuf Cegetel and Activision) and its intention to maintain, in 2009, a distribution rate of at least 50% of the adjusted net income, at constant perimeter”.
SFR
Mobile EBITDA amounted to €1,787 million, a decrease by €19 million on a comparable basis. The 2.7% growth in mobile service revenues (up 2.5% on a comparable basis) and the strong control of other costs were offset by a 1.6 percentage point increase in customer acquisition and retention costs (12.5% of mobile service revenues), new cuts in wholesale offers imposed by regulators and an increase in inter-connection costs following the success of unlimited messaging offers.
Broadband Internet and fixed EBITDA amounted to €145 million, an increase by €18 million, on a comparable basis. EBITA excluding restructuring costs (€10 million) was €32 million and included Neuf Cegetel since April 15, 2008 and Tele2 France fixed and ADSL activities since July 20, 2007.
SFR’s EBITDA amounted to €1,932 million and EBITA amounted to €1,340 million, decreasing by €1 million and by €56 million respectively compared to the same period in 2007, on a comparable basis; thus including first restructuring costs amounting to €10 million following the integration of Neuf Cegetel by SFR and an increase of write-offs by €11 million during the second quarter of 2008.
Maroc Telecom
Maroc Telecom’s EBITA increased by 8.6% to €584 million compared to the first half of 2007 (+12.4% at constant currency and at constant perimeter).
This performance was the result of the combined effect of revenue growth (+8.2% at constant currency and at constant perimeter), the control both of acquisition costs in the context of steady growth in the mobile customer base4 and also operational expenses.
Mobile EBITA increased by 9.2% to €450 million compared to the same period last year (+12.2% at constant currency and at constant perimeter). Mobile activity evolution was driven by strong revenue growth (+13% at constant currency and at constant perimeter).
Fixed and Internet EBITA increased by 6.3% to €134 million compared to the same period last year (+13.1% at constant currency and at constant perimeter).
Posted to the site on 1st September 2008
