Telecoms and broadband drive Vivendi’s Q2 sales

25 Jul 2008

Vivendi, the Paris-based media and telecommunications conglomerate, reported second quarter sales of EUR5.98 billion (USD9.44 billion), up 15.1% from EUR5.20 billion a year ago, driven by a strong growth from mobile and mass broadband operations. SFR’s revenues increased by 33.3% year-on-year to over EUR2.98 billion, due to the consolidation of alternative fixed line operator neuf Cegetel (from April 2008) and the fixed and ADSL businesses of Tele2 France (from July 2007). On a comparable basis, SFR’s Q2 revenue was up 1.5% y-o-y. The unit’s mobile revenues were stable at EUR2.24 billion (+0.1%), while service revenues rose 2.5% compared with the year-earlier period, to EUR2.15 billion. Excluding the impact of mobile voice termination regulated tariff cuts (13%) from 1 January 2008, SFR’s mobile service revenues would have increased by 4.2%. In the broadband arena, sales from services climbed 7.6% in Q208, compared with the same time a year ago, to EUR842 million.

For the first half of the year, SFR added 509,000 net new mobile customers to lift its registered base to 19.275 million by 30 June. The increase includes the integration of 438,000 neuf Mobile and debitel customers into the SFR subscriber base at end-June 2008. Vivendi said it continued to improve its subscriber mix: the contract base grew by 10.3% y-o-y to 13.056 million, improving the post-paid/pre-paid customer split figure by 1.9 percentage points over the year. Broadband internet and fixed line revenues reached EUR968 million in 1H 2008, up 7.2% on the corresponding period of 2007, driven by solid subscriber growth. SFR ended June with 3.767 million broadband internet customers and 184,000 enterprise data links to the SFR network

France, neuf Cegetel, SFR