Vivendi's Q3 net profits dip 13% on higher operating costs

14 Nov 2008

French media and telecoms conglomerate Vivendi has reported a 13% drop in third-quarter net profits as acquisition costs at its telecoms and video-games divisions impacted on its bottom line. The group’s adjusted net income, or profit excluding one-time gains, fell to EUR625 million (USD783 million) from EUR721 million a year earlier, missing the EUR657 million average estimate of analysts surveyed by Bloomberg. Third-quarter revenues climbed 20% year-on-year to EUR6.51 billion from EUR5.42 billion a year earlier, bolstered by the purchase of Activision and neuf Cegetel. Operating profit before amortisation was down four percentage points at EUR1.28 billion. Vivendi said the drop in profit was ‘mainly driven by the unfavorable effect in 2008 of the integration costs incurred by Vivendi games following its combination with Activision, and by SFR following the acquisition of neuf Cegetel’.

France, SFR