Vivendi reports 9.1% decline in net profit in 2013

25 Feb 2014

French media group Vivendi has published its financial results for the financial year ended 31 December 2013, reporting a 2% decrease year-on-year in revenues to EUR22.135 billion (USD30.402 billion) from EUR22.577 billion in 2012. Adjusted net profit dipped to EUR1.540 billion, a 9.1% decrease on the EUR1.705 billion reported in the twelve months of 2012, mainly attributed to a decrease in EBITDA, which was down 23.1% to EUR2.433 billion. 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 EUR10.199 billion, a 9.6% decrease y-o-y on the EUR11.288 billion reported in end-December 2012, with the slump mainly attributed to the impact of price cuts due to the competitive environment. Further, in the period under review, SFR’s EBITDA declined by 16.2% year-on-year to EUR2.766 million.

In operational terms, SFR’s total mobile customer base reached 21.354 million subscribers by 31 December 2013, with a total of 11.381 million post-paid subscribers at that date, equivalent to 756,000 million net additions in the twelve months of 2013. Mobile internet usage also improved, with 64% of SFR customers equipped with a smartphone at end-December 2013, compared to 49% a year earlier. The number of fixed broadband accesses reached 5.209 million in 2013, with 170,000 net additions reported throughout the year.

France, SFR, Vivendi