Note to readers: This press release contains unaudited consolidated earnings established under IFRS, presented to Vivendi's Management board.
First Nine Months of 2008
-- Revenues: EUR17,777 million, an increase of 13.6% (15.9% at constant currency).
-- Integration costs of Neuf Cegetel and Activision: EUR199 million.
-- EBITA1: EUR3,848 million, a decline of 2.1% (-1% at constant currency). Excluding
integration costs, EBITA growth is 3%, in line with expectations.
-- Adjusted net income2: EUR2,079 million, a decline of 7.5%, including integration costs.
-- Earnings, attributable to equity holders of the parent: EUR3,982 million, an increase of 89.3%, including an exceptional gain.
2008 Outlook confirmed: Vivendi expects to deliver profit growth similar to 2007 at constant perimeter (excluding Neuf Cegetel and Activision impacts)
Dividend policy confirmed 2008 dividend growth similar to adjusted net income growth at constant perimeter
Approximately EUR5.5 billion in credit lines available anticipated at the end of 2008
No significant debt reimbursement before 2012
Third quarter earnings reflect the impact of the acquisition of 100% of Neuf Cegetel by SFR and the combination of Activision Blizzard; two strategic acquisitions announced in December 2007 and completed in 2008.
Therefore, third quarter earnings include:
- a gain on the dilution of Vivendi's interest in Vivendi Games following the creation of Activision Blizzard (+EUR2,318 million) and
- EUR189 million integration costs in the third quarter of 2008, due to Neuf Cegetel (EUR100 million) and Activision Blizzard (EUR89 million). These transactions represent the majority of exceptional costs that occurred as a result of the two transactions.
Vivendi Business Units: Comments on First Nine Months 2008 Revenues and EBITA
Universal Music Group
Universal Music Group's (UMG) revenues of EUR3,142 million for the first nine months of 2008 grew 3.5% at constant currency (a 3.8% decline in actual currency) compared to the same period last year with growth in music publishing and merchandising following the acquisitions of BMG Music Publishing and Sanctuary in 2007, a 33% increase at constant currency in digital sales and higher license income. These factors more than offset lower physical sales.
Best sellers included the debut release from Duffy, the "Mamma Mia!" soundtrack, new releases from Lil' Wayne and Jack Johnson in addition to carryover titles from Amy Winehouse and Rihanna.
UMG's EBITA of EUR408 million for the first nine months of 2008 was 21.8% above the same period last year. This increase reflects the inclusion of BMG Music Publishing in the results, as well as credits from the downward valuation of compensation schemes linked to equity value and increased license income. EBITA was impacted by restructuring costs of EUR41 million (compared to EUR17 million for the first nine months of 2007) resulting from the ongoing rationalization of the recorded music division and integration of last year's acquisitions and Univision Music Group.
Canal+ Group
Canal+ Group's revenues for the first nine months of 2008 were EUR3,391 million, a 5% increase. Revenues from Canal+ France increased by 2.9%, mainly driven by Canal+ and CanalSat/TPS' portfolio growth revenues as well as higher advertising revenues. As of September 30, 2008, total subscription portfolio (individual and collective, France including overseas territories and Africa) reached 10.4 million.
Net portfolio growth over the past 12 months amounted to approximately 40,000 subscriptions, including an actual increase of approximately 110,000 subscriptions and a negative adjustment of approximately 70,000 subscriptions resulting from the portfolio change of scope to include viable contracts only.
As of September 30, 2008, more than 90% of TPS subscribers had been transferred to the CanalSat platform, in line with the company's target to have one single satellite platform by the end of 2008.
Canal+ Group's other operations revenues increased sharply by 18.6% compared to the same period last year. This performance is driven by a continued subscription portfolio growth in Poland (+159,000 compared to the end of September 2007), higher advertising revenues from i>TELE and good performance at StudioCanal which benefited from the integration of Kinowelt and successful theatrical releases, including "Disco", "Paris" and "Le Premier jour du reste de ta vie".
Canal+ Group reported EBITA, excluding transition costs linked to the TPS merger, of EUR685 million compared to EUR565 million for the first nine months of 2007. Including transition costs (EUR64 million) which mainly included the technical migration costs of former TPS subscribers to CanalSat, EBITA amounted to EUR621 million compared to EUR509 million over the same period last year (+22%).
EBITA growth was driven by the strong performance of Canal+ France, up EUR110 million, excluding transition costs linked to the TPS merger. In addition to higher subscription and advertising revenues, EBITA benefited from continued synergies on distribution costs (subscriber acquisition and management costs) and programming costs (new Ligue 1 contract, theme channels), as well as from a favorable but temporary Ligue 1 broadcasting schedule (two fewer match days compared to the same period last year). CanalOverseas also positively contributed to Canal+ France's good results thanks to sustained growth of its subscriber portfolio.
EBITA growth from Canal+ Group's other operations is driven by good performances at each of Canal+ Group's subsidiaries.
SFR
SFR's revenues for the first nine months of 2008 increased by 26.7% to EUR8,420 million compared to the same period in 2007 due to the consolidation of Neuf Cegetel since April 15, 2008 and the fixed and ADSL activities of Tele2 France since July 20, 2007. On a comparable basis3, SFR's revenues increased by 2% mainly due to the favorable effects of an increase in mobile customer base and mass market broadband Internet customers along with usage growth - especially in access, data, fixed and mobile Internet services - and the dynamism of the Corporate segment.
Mobile revenues4 increased by 2.7% to EUR6,716 million compared to the same period in 2007 (+2.1% on a comparable basis). Mobile service revenues5 increased by 2.6% to EUR6,416 million. Excluding the impact of mobile voice termination rate cuts (13%) as of January 1, 2008, SFR mobile service revenues would have increased by 4.5%.
For the first nine months of 2008, SFR increased its registered base to 13.268 million, which represents a 10.7% year-on-year increase. The customer mix (percentage of postpaid customers in customer base) improved by 2.8 percentage points in one year, at 69%. SFR added 974,000 net new postpaid mobile customers6 during the period. SFR increased its registered mobile customer base to 19,228 million. Net growth in data revenues from mobile services reflected the success of the Illimythics offers launched in the fall of 2007. It improved by 32.6% mainly due to interpersonal services (SMS and MMS), content (music, TV-Videos and games) and the development of mobile Internet and corporate segment operations.
Broadband Internet and fixed revenues4 reached EUR1,916 million, increasing by 2% compared to the same period in 2007 on a comparable basis. Growth is due to mass market broadband Internet services and the Corporate segment, which generated a 16% and 11% year-on-year increase respectively, on a comparable basis, partly offset by the decline in the wholesale and switched voice activities.
At the end of September 2008, SFR's broadband Internet customer base7 increased by 8.2% compared to the same period in 2007, on a comparable basis, totaling 3,730 million; SFR had 188,000 Corporate data links connected to the SFR network.
Mobile EBITDA was EUR2,694 million, a decrease of EUR54 million on a comparable basis. The 2.6% growth in mobile service revenues4 (+2.2% on a comparable basis) and the strong control of other costs were offset by a 1.9 percentage point increase in customer acquisition and retention costs (13% of mobile service revenues), new cuts in wholesale offers imposed by regulators and an increase in interconnection costs following the success of unlimited voice, data and messaging offers.
Broadband Internet and fixed EBITDA was EUR303 million, an increase by EUR14 million on a comparable basis, due to the consolidation of Neuf Cegetel since April 15, 2008 and the fixed and ADSL activities of Tele2 France since July 20, 2007.
SFR's EBITDA of EUR2,997 million and EBITA (including SFR-Neuf Cegetel integration costs of EUR110 million) of EUR1,966 million, declined by EUR40 million and EUR194 million respectively, compared to the same period in 2007, on a comparable basis.
Maroc Telecom
Maroc Telecom Group's revenues for the first nine months of 2008 increased by 6.1% to EUR1,930 million compared to the same period last year (+7.2% at constant currency and at constant perimeter8).
Maroc Telecom's mobile revenues grew by 9.1% to EUR1,382 million compared to the same period last year (+10.6% at constant currency and at constant perimeter).
Maroc Telecom SA's mobile customer base9 reached 14.629 million customers, reflecting a sustained increase of 14% compared to the end of September 2007 (a net increase of 1.302 million customers over the first nine months of 2008) despite increased competition. With the strong increase in the customer base, the churn rate reached 32.9%, increasing by 6.3 percentage points compared to the end of September 2007. The blended ARPU10 reached EUR8.7, an 8.7% decrease at constant currency compared to the end of September 2007, mainly due to the strong increase in the customer base.
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November 13, 2008 12:52 ET (17:52 GMT)

Publié le 13 novembre 2008 Copyright © 2008 Dowjones