Earnings: Vivendi’s 2006 Earnings Up On Games, Telco

Vivendi has released its full year earnings report for 2006 — revenues increased by 2.9 percent over 2005 to 20,044 million euros (the constant currency increase was 3.3 percent). Adjusted net income rose 17.9 percent to 2.6 billion euros, with EBITA increasing by 9.6 percent over the previous year to 4.4 billion euros.
–Viviendi’s books are dominated by telco SFR, with an EBITA for 2006 of 2,583 million euros. This was an increase of 6.6 percent over 2005.
–Maroc, the incumbent telco in Morroco, saw an EBITA of 912 million for 2005, a year-on-year increase of 16 percent. Most of this was from mobile, which had an EBITA of 627 million (up 28.3 percent year-on-year).
–Universal Music Group (UMG) saw its EBITA for 2006 grow by 9.3 percent over 2005 to 744 million euros (on a constant currency basis the increase is 10.2 percent)…revenues grew by 1.3 percent to 4,955 million euros. “Improved margins on higher sales, legal settlements and the recovery of a previously expensed cash deposit in the TVT matter offset increased marketing, artist and repertoire (A&R) costs of local artists.” Vivendi plans to strengthen UMG with the acquisition of BMG’s music publishing business.
–Canal+ Group (which, combined with TPS is the largest European pay-TV platform by subscriber numbers) saw its EBITA grow to 251 million euro, up 21.8 percent on a comparable basis with 2005, although transition costs of 177 million euro saw that figure fall to 74 million euro. On a comparable basis, pay-TV operations in France posted a 46% increase in EBITA year-on-year, excluding transition costs.
–Vivendi Games reported a 2006 EBITA of 115 million euro, an increase of 109 percent over 2005. This was driven by a growth in revenues, largely due to World of Warcraft’s global success.
Earnings Report
Related stories:
Earnings: Vivendi’s Q4 Up on TV and Games; UMG’s Digital Revs Up 84 Percent in 2006

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