PARIS -(Dow Jones)- Entertainment and telecom company Vivendi, Wednesday said first-quarter net profit fell 41% compared with a year earlier when results were boosted by a gain from selling a stake in its pay-TV division.
Net profit for the quarter ended March 31 decreased to EUR555 million from EUR932 million a year earlier. The 2007 number included a EUR239 million gain from the sale of a 10.18% stake in Canal Plus to Lagardere.
Adjusted profit, which excludes most non-recurring gains and charges, dropped 9.6% to EUR697 million from EUR771 million a year earlier, above an average EUR652 million forecast by 10 analysts polled by Dow Jones Newswires.
Vivendi confirmed its 2008 guidance of adjusted profit growth similar to the 8.3% increase posted in 2007. The guidance excludes the impact of acquisitions or disposals.
Adjusted earnings before interest and tax, or Ebit, the figure analysts follow to gauge Vivendi's operating performance, slid 5.6% to EUR1.2 billion from EUR1.27 billion.
A Dow Jones survey of 12 analysts had forecast adjusted Ebit of EUR1.15 billion. Adjusted Ebit excludes the amortization of intangible assets acquired through business combinations.
Revenue increased 5.2% to EUR5.28 billion from EUR5.02 billion, as a strong performance at its telecom division was offset by a decline in its games unit. Analysts had forecast revenue at EUR5.21 billion.
Adjusted Ebit at SFR, France's second-largest mobile operator, fell 3% to EUR624 million. SFR, which is 44%-owned by Vodafone Group PLC (VOD), is the division contributing the largest share to Vivendi's profit.
The company's games division reported a 53% slump in first-quarter adjusted Ebit to EUR50 million. A year earlier the division's results had been dramatically boosted by the launch of an expansion pack for its hugely popular online game, World of Warcraft.
Pay-TV operator Canal Plus posted adjusted Ebit up 3.7% to EUR170 million.
Vivendi shares Wednesday ended the day down EUR0.04, or 0.2%, at EUR25.20 compared with a 1.1% rise in France's benchmark CAC-40 index.
Vivendi's share price has declined about 19% since the start of the year, underperforming the DJ Stoxx European media index as concern persists over the outlook for the music industry.
After a busy year on the dealmaking front in 2007, Chief Executive Jean-Bernard Levy has said the company will spend 2008 focusing on completing and integrating the acquisitions of U.S. video-game producer Activision and French telecom operator Neuf Cegetel.
-By Jethro Mullen, Dow Jones Newswires; 33 1 4017 1738; jethro.mullen@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 14th May 2008
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