Vivendi posts solid 1H09 results, SFR ups market share

1 Sep 2009

French communications and entertainment group Vivendi has published its unaudited consolidated earnings for the first six months of the year, reporting revenues of EUR13.18 billion (USD18.85 billion), up 17% compared to first half 2008. Group EBITDA reached EUR2.89 billion, up 12.9% year-on-year and adjusted net income of EUR1.47 billion represented a 0.9% rise on the same period of 2008. Vivendi said the smaller growth in adjusted net income was due to an increase in interest expenses and minority interests. Commenting on the results, Vivendi chief executive Jean-Bernard Levy, said: ‘Vivendi delivered a very solid performance in the first half of 2009 in a tough environment. The group is successfully weathering the current economic slowdown, which is having a real but limited impact. Vivendi is unique thanks to its subscription-based model, leadership in its markets and high-quality, innovative, creative products and services. Our businesses are young and enjoy substantial growth opportunities due notably to the digital revolution’.

In the first six months of 2009 the group’s French telecoms business SFR (including neuf Cegetel) increased its market share in the fixed internet and mobile segments, Vivendi said. Revenues for the telco increased by 16.1% y-o-y to EUR6.14 billion, underpinned by neuf Cegetel which has been consolidated in its results since 15 Arpil 2008. On a comparable basis, SFR’s revenues decreased by 0.3%. Turnover from the cellular business increased 0.6% on an annualised basis to EUR4.44 billion, driven by subscriber growth and an increase in demand for data revenues (+34% compared to the same period in 2008 due to unlimited SMS and MMS offers and mobile internet development for the mass market and the enterprise segment). SFR strengthened its market share in 1H09, adding a net 559,000 new mobile users – equivalent to a 61% market share of all net additions in the period. SFR also improved its customer mix in 1H09 with the proportion of post-paid users climbing .8 percentage points year-on-year to reach 69.5% by 30 June 2009. SFR added 466,000 new post-paid customers in the first half of 2009, achieving a total of 14.048 million by mid-year.

The group’s broadband internet and fixed telephony business posted revenues of EUR1.865 billion, down 3.6% y-o-y on a comparable basis. Excluding the impacts of the decrease in switched voice revenues, regulatory changes and the sale of assets of Club Internet network, broadband internet and fixed revenues increased by 4.5%, it said. SFR added 275,000 new net broadband internet customers in the first six months of the year for a total of 4.154 million customers. In the Enterprise market, SFR had 169,000 data links connected to the SFR network (+10.5% on a comparable basis compared to June 2008).

France, SFR