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Vivendi third-quarter results were lackluster at best. Revenue rose 0.3 percent to 4.9 billion euros ($6.2 billion) helped by gains at Universal Music Group and Vivendi Games. Digital was one of the few bright spots for the media conglomerate, which recently said discussions with
Kohlberg Kravis Roberts & Co. didn’t result in a bid.
Here are some highlights:
— UMG digital sales rose 88 percent to 126 million euros ($160.9 million) showing strong growth in both online and mobile, accounting for 12 percent of total sales. These figures included money received from the settlement of the Napster litigation. Overall, revenue fell 2.1 percent to 1.1 billion euros. ($1.39 billion)
— The popularity of “World of Warcraft” helped push up sales at Vivendi Games by 15.2 percent to 182 million euros ($232 million)
— SFR revenue dropped 1.8 percent to 2.2 billion euros ($2.8 billion). During the first nine months, the mobile service added 307,000 new net customers giving it a total of 17.5 million. Net data revenue represented 12.9 percent of network revenue as text messaging increased.
Bloomberg:“We expected a bit better,” said Franck Hennin, a fund manager at Richelieu Finance in Paris, which manages about $5 billion. “The not-so-good news is on SFR, which makes up a significant part of Vivendi. This is really a disappointment.” Cazenove analyst Freedie Neave was even more blunt in a note to investors: “On top of the weekend news of KKR having ended bid talks with Vivendi we think it’s increasingly difficult to see great upside in the near term.”