Vivendi Q1 Down Less Than Expected
May 14, 2008
By Reuters
Vivendi, Europe's largest entertainment group, posted lower first quarter operating profit, hurt by a tough comparative basis with last year and the weak dollar, but the result still beat market expectations.
Vivendi generated earning before interest and tax (EBIT) of 1.203 billion euros ($1.86 billion) in the three months to March 31, down from 1.274 billion euros in the first quarter of 2007, but above expectations of 1.134 billion euros in a poll of 8 analysts.
Quarterly net income fell 9.6 percent to 697 million euros, but group sales were up 5.2 percent to 5.28 billion euros, led by strong revenue growth at its key SFR mobile phone business and at Maroc Telecom IAM.CS.
Last year, Vivendi posted adjusted operating profit growth of 8 percent and adjusted net income growth of 8.3 percent.
The Paris-based telecoms and media group also affirmed its 2008 guidance, saying it expected to deliver profit growth similar to 2007.
Vivendi owns Universal Music Group, the world's biggest record company and controls Morocco's dominant telecoms operator Maroc Telecom and SFR, France's second largest mobile operator.
SFR is integrating with the fixed-line operator Neuf whose acquisition it announced in December.
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