Vivendi’s profit slumps to EUR672mn

15 May 2013

French media group Vivendi has published its audited consolidated financial results for the first quarter of 2013, reporting revenues of EUR7.05 billion (USD9.11 billion), a marginal decrease of 1.0% compared to EUR7.12 billion in 1Q 2012. Net profit, however, tumbled with nearly 18.5% year-on-year to EUR672 million from EUR825 million in 1Q12, mainly attributed to the decrease in EBITDA, which was down 17.2% to EUR1.34 billion from the EUR1.62 billion reported in the first quarter of 2012. The decline in EBITDA was caused by the struggling operations in its SFR mobile division, which was caught up in a fierce price war with its market competitors.

SFR’s revenues amounted to EUR2.59 billion in 1Q13, an overall decrease of 11.4% in comparison to EUR2.93 billion in the first quarter of 2012, while revenues from mobile operations declined with almost 17.4% to EUR1.64 billion in 1Q 2013, due to the impact of price reductions imposed by the locals telecoms regulator and the ongoing price war in the market. Turnover from broadband and fixed voice services amounted to EUR984 million, a marginal decrease of 0.7% year-on-year.

SFR’s total mobile customer base reached 20.719 million at end-March 2013, as the company maintained the commercial momentum initiated during the last quarter of 2012, 16.82 million of which were post-paid customers, corresponding to 257,000 net additions in the first quarter of 2013. Mobile internet usage also progressed, with 54% of SFR customers equipped with a smartphone at end-March 2013, compared to 43%a year earlier. The fixed broadband accesses reached 5.13 million at the end of March 2013, with 56,000 net additions during the first quarter. Quad play subscribers, meanwhile, reached nearly two million at the end of the quarter, representing almost 40% of the broadband Internet customer base.

France, SFR, Vivendi