Vivendi reports doubled half-year profit

1 Sep 2011

PARIS: French media and telecom group Vivendi announced on Wednesday (30 August 2011) a doubling of first-half net profits to 2.5 billion euros ($3.6 billion) as it continued to reap the benefits from a legal victory.

The Paris-based group's results were boosted by a 1.25-billion-euro settlement from a legal battle in Poland during the first quarter.

Sales were broadly stable, nudging up 1.9 percent to 14.2 billion euros, while earnings before interest, taxes and amortisation (EBITA) rose 3.7 percent to 3.4 billion.

"Despite the turbulent economic and financial environment, our operational indicators are increasing. We confirm our full year outlook for adjusted net income above 3 billion euros, and for an increase in the dividend," chief executive Jean-Bernard Levy said in a statement.

Vivendi's Brazilian telecoms unit GVT posted strong growth with sales up nearly 54 percent to 682 million euros, with EBITA rising 55 percent to 285 million euros.

Its Activision video games also posted 9.0-percent sales growth to 1.9 billion, with EBITA up 34 percent to 833 million.

However sales by its Universal Music Group slipped by nearly two percent to 1.9 billion euros, with EBITA dropping 17 percent.

Sales by the French telecoms unit SFR dipped by 2.0 percent to 4.3 billion euros, with EBITA dropping 8.0 percent to 1.9 billion euros as it absorbed the cost of higer sales tax on some mobile services.

The company's shares jumped more than four percent in early trading while the Paris CAC 40 index was showing a gain of 0.4 percent.

Source: AFP