Vivendi reports 8.5% rise in 4Q revenue; SFR up 8.7%

31 Jan 2008

French telecoms and entertainment group Vivendi has reported an 8.5% rise in fourth-quarter revenues to EUR6.01 billion (USD8.88 billion), driven by a strong performance from its telecoms division – including French cellco SFR and Moroccan incumbent Maroc Telecom – which helped offset weaker sales from its other business units. In the wake of the strong set of results, Vivendi reaffirmed its full-year 2007 guidance for adjusted net profit of approximately EUR2.8 billion.

SFR, France’s second largest mobile operator by subscribers and Vivendi’s biggest contributor in terms of revenues and profits, reported an 8.7% year-on-year rise in Q4 2007 revenues from EUR2.18 billion to EUR2.37 billion, thanks in part to quarterly net additions of 657,000 which compared favourably with the 377,000 net sign-ups reported in Q4 2006. The results were also bolstered by the acquisition of the French business of Tele2 from July 2007, it said. In the year as a whole, SFR added 883,000 net new customers, lifting its registered mobile customer base to 18.766 million, a 4.9% increase versus last year. Vivendi added that the operator’s contract customer base grew by 5.8% year-on-year to 12.294 million (676,000 net additions), leading to an improved customer mix of half a percentage point over the year. SFR claimed to be the French market leader in 3G/3G+ customer numbers, with 4.1 million subscribers at the end of December 2007, compared to 2.7 million at the end of December 2006. It also reported success for its mobile internet access offer ‘Illimythics’, launched in November 2007, which had more than 175,000 users by the year-end. Elsewhere, SFR’s ADSL and fixed revenues reached EUR233 million on the back of 415,000 ADSL customers and 2.036 million fixed voice customers at the end of 2007. Meanwhile, Maroc Telecom reported that its full-year consolidated revenues rose 21.7% to USD3.57 billion, driven by 30% year-on-year growth in the group’s domestic and international mobile customer base.

France, SFR