Vivendi units report 2010 results

2 Mar 2011

The principal telecoms units of French media and telecoms conglomerate Vivendi have reported their financial results for FY2010 showing modest rises in revenue across the board. In France, fixed and mobile operator SFR booked revenues of EUR12.577 billion (USD17.375 billion) in 2010, a 1.2% increase compared to 2009, despite a more competitive market and substantial tariff cuts resulting from Arcep’s regulatory decisions. Excluding the impact of regulated price cuts, revenues increased by 5.8% year-on-year. SFR’s mobile division posted turnover of EUR8.930 billion, a 0.6% decrease compared to 2009, with mobile service revenue decreasing by 1.1% year-on-year to EUR8.420 billion. Excluding the impact of the 31% and 33% cuts in mobile voice termination regulated prices (effective 1 July 2009 and 1 July 2010 respectively), the 33% SMS voice termination regulated price cut (1 February 2010) and a reduction in roaming tariffs, mobile service revenues would have increased by 4.8% it said. Nevertheless, SFR added 1.288 net new post-paid mobile users last year, driving a 16% increase in data revenue and lifting the contract base to 16.095 million by the year end. As at 31 December 2010 75.6% of the total 21.303 million mobile subscriber base were post-paid, up three percentage points year-on-year. SFR also booked broadband internet and fixed revenues of EUR3.944 billion last year, a 4.5% increase compared to 2009, as its high speed user base climbed to 4.887 million by 31 December 2010, a 10.0% increase year-on-year.

In Morocco, the Maroc Telecom Group booked full-year revenues of EUR2.835 billion, up 5.2% year-on-year (or 2.4% higher at constant currency) due to the solid performances of its domestic market and of its subsidiaries in Africa. Maroc’s consolidated customer base reached 25.8 million by the end of 2010, up 19% compared to a year ago, reflecting a continuing sustained growth of the mobile customer base in Morocco (+10.6%) and especially in the African subsidiaries, where it reached over 6.8 million mobile customers, up 58% year-on-year.

Maroc Telecom booked group EBITDA of EUR1.667 billion, up 3.4% year-on-year (+2.0% at constant currency). Its high EBITDA margin rate was maintained at 58.8% due it said to ‘the pursuit of growth in revenues and of the very proactive cost optimisation policy both in Morocco and in the subsidiaries’.

Finally, Vivendi’s Brazilian venture Global Village Telecom (GVT) said revenues, EBITDA and EBITA for the full year 2010, were EUR1.029 billion, EUR431 million and EUR277 million, respectively. On a pro forma basis, each metric was up year-on-year – by 71.2%, 79.6% and 143.0%, respectively. Vivendi took control of and has consolidated GVT since 13 November 2009 and has fully owned its share capital since 27 April 2010. Vivendi said the increase in revenues at the Brazilian operator was driven by an 80.5% increase in broadband service revenues and a 34.0% increase in voice service revenues. GVT added 1.416 million lines in service last year, an increase of 54.6% compared to 2009, boosting total lines in service to 4.232 million.

Brazil, France, Morocco, Global Village Telecom (GVT), Maroc Telecom (IAM), SFR