Acquisitions and gaming help fuel Vivendi’s 1Q10 revenues, profits

12 May 2010

Paris-based entertainment and telecoms group Vivendi has reported a strong rise in first-quarter revenues and operating profits, driven by its video gaming unit, a better-than-expected quarter from 56%-owned French telco SFR and the recent acquisition of Global Village Telecom (GVT), in Brazil; its music and pay-TV units struggled though. The conglomerate beat market expectations with group quarterly operating profit of EUR1.6 billion (USD2.0 billion), consolidated revenue of EUR6.9 billion, and adjusted net profit of EUR736 million. Analysts had predicted figures of EUR1.47 billion (operating profit), EUR6.77 billion (revenue) and EUR684 million (net income), respectively. In the wake of the announcement Vivendi confirmed its full-year guidance for ‘slight growth’ in earnings before interest, tax and amortisation (EBITA) in fiscal 2010, compared with ‘strong growth’ in FY2009, of around 8.8%, taking it to around EUR5.93 billion.

In Brazil, fixed line and internet provider GVT contributed to group sales and profits for the first time since it was purchased in November 2009. It generated revenue of EUR214 million and EBITDA of EUR43 million. Meanwhile SFR, in which Vodafone holds the minority 44% stake, posted a solid set of financials despite the impact of lower SMS termination rates on its top line revenues. Turnover for the telco increased 1.9% year-on-year to EUR3.09 billion, while operating profit was up 2.6% to EUR985 million.

France, Global Village Telecom (GVT), SFR, Vivendi