Vivendi reports 14.8% decline in profit in 3Q13

15 Nov 2013

French media group Vivendi has published its financial results for the third quarter ended 30 September 2013, reporting a marginal 0.2% growth year-on-year in revenues to EUR5.348 billion (USD7.196 billion) from EUR5.339 billion in 3Q12. Adjusted net profit, however, dipped to EUR403.0 million, a 14.8% decrease on the EUR473 million reported in the corresponding period of 2012, mainly attributed to a decrease in EBITDA, which was down 23.0% to EUR730.0 million. The decline in EBITDA was caused by the struggles faced by its SFR mobile division, which was caught up in a fierce price war with its market competitors. In the period under review, SFR’s revenues amounted to EUR2.508 million, a 8.7% decrease y-o-y on the EUR2.747 billion reported in 3Q12, with the slump mainly attributed to the impact of price cuts due to the competitive environment. SFR’s EBITDA declined by 37.8% to EUR334 million by end-September 2013 from EUR537 million reported in 3Q12.

In operational terms, SFR’s total mobile customer base reached 21.237 million subscribers by 30 September 2013, with a total of 17.732 million post-paid subscribers at that date, equivalent to 1.169 million net additions in the first nine months of 2013. Mobile internet usage also improved, with 56% of SFR customers equipped with a smartphone at end-September 2013, compared to 47% a year earlier. The number of fixed broadband accesses reached 5.209 million in 3Q13, with 134,000 net additions reported during the first nine months of the year.

France, SFR, Vivendi