Vivendi Earnings Up, Shares Down
September 2, 2008 at 5:19 AM (PT)
Media and telecom firm VIVENDI looks set to meet its 2008 profit goals, thanks to a second-quarter earnings gain and a newly inked contract with THE ROLLING STONES, reports FORBES.
On MONDAY, FRANCE'S VIVENDI, owner of UNIVERSAL MUSIC GROUP, posted a double-digit sales increase for the recent quarter. But the company said its net profits were barely effected as higher earnings at its Canal+ pay-TV operations were offset by a decline in profitability at its mobile operator SFR business.
Despite VIVENDI's reaffirmation of 2008 financial goals, shares of the firm fell 0.5%, or 0.14 euros ($0.21), to 26.31 euros ($38.59), on MONDAY in PARIS, slightly lower than EUROPEAN media stocks which fell .4% for the day. The stock suffered because of higher restructuring costs associated with SFR outlined in the company's statement, as well as increased marketing costs at its games division.