Vivendi Net Profits Down 49% For Q2
August 31, 2007 at 5:46 AM (PT)
VIVENDI has posted a 49% drop in second-quarter net profit from a year earlier, when it had a gain from an asset sale, and said it is sticking to its forecast for the full year. Net profit at the French company fell to €594 million ($811.2 million) from €1.16 billion a year earlier.
"We expect to exceed the record year we had in 2006 and we confirm our outlook for an adjusted net income of above 2.7 billion" euros ($3.7 billion), Chairman JEAN-BERNARD LEVY said in a statement.
VIVENDI-owned UNIVERSAL MUSIC GROUP’s EBITA of €220 million is down €5 million compared to the first half of 2006. The first half of 2006 included the recovery of a previously expensed cash deposit connected with the TVT dispute of €50 million.
In the first half of 2007, digital sales increased approximately 50% (at constant currency). Within a difficult recorded-music market and despite unfavorable currency movements, UMG significantly outperformed its competitors on an operating basis.