Vivendi’s 2Q sales rise 7.4%

26 Jul 2007

French media and telecom group Vivendi yesterday reported its financials for the second quarter to 30 June 2007, with group sales rising 7.4% year-on-year on the back of the success of computer game ‘World of Warcraft’ and strong growth at its telecom and pay-TV units. Vivendi said consolidated revenues climbed to EUR5.2 billion (USD7.15 billion) in the period under review, from EUR4.8 billion a year earlier, beating market expectations of EUR5.12 billion, in a poll conducted by Dow Jones Newswires. The group’s single largest revenue generator, French mobile operator SFR, posted revenue of EUR2.24 billion, while at Maroc Telecom in Morocco, revenues rose 20.6% to EUR615 million. SFR’s service revenues, excluding equipment sales, were 0.9% higher at EUR2.099 billion. In the first six months of the year SFR added 97,000 net new customers, allowing its customer base to grow by 3.2% year-on-year. However, the increase in the customer base and growth in usage was offset by the French regulator’s move to cut call termination rates by 21% as of 1 January 2007, and SMS termination rates by 30% as of mid-September 2006. Without these regulatory effects, SFR’s service revenues would have been up by 4.6% year-on-year.

France, Maroc Telecom (IAM), SFR