Vivendi Net Falls 40% After Year-Earlier Sale Gain
May 15, 2008 at 6:19 AM (PT)
VIVENDI SA said its first-quarter net profit fell 40% from a year earlier, when results were aided by a gain from selling a stake in its pay-television division, reports THE WALL STREET JOURNAL. The FRENCH conglomerate, the parent of UNIVERSAL MUSIC GROUP, said net profit declined to eu555 million ($859 million) from eu932 million a year earlier. The 2007 results included a eu239 million gain from the sale of a 10.18% stake in CANAL PLUS to LAGARDÈRE SCA.
Adjusted profit, which excludes most nonrecurring gains and charges, fell 9.6% to eu697 million from eu771 million a year earlier. Revenue rose 5.2% to eu5.28 billion as a strong performance at VIVENDI's telecommunications division offset a decline in its videogames unit.
VIVENDI shares closed down four EUROPEAN cents at eu25.20, compared with a 1.1% rise in FRANCE's benchmark CAC-40 index. The stock has declined about 19% since the start of the year, underperforming the DJ STOXX EUROPEAN MEDIA INDEX, as concerns persist over the outlook for the music industry.