French media group Vivendi announced on 30 May 2013 that it would consider a public listing of its French telecom operator SFR in a bid to reduce the group’s exposure to telecoms, which now deliver 60% of its operating profit, and concentrate instead on its media businesses. At the annual meeting of shareholders, held on Tuesday, group’s Chairman Jean-Rene Fourtou said ‘Another priority is to put in place the best strategy for SFR. We could proceed to an initial public offering of SFR later… This would not be a short-term move and would be done only after operational improvements’.
SFR is estimating a twelve percentage point drop in its EBITDA to EUR2.9 billion (USD3.80 billion) in 2013 attributed mainly to the raging price war in the French market. In January 2013 SFR simplified its mobile offers and reduced prices again, although the company is struggling with an ongoing policy to cut costs to protect margins.