Vivendi Reports Strong Financials
September 1, 2009 at 4:41 AM (PT)
VIVENDI SA has reported better-than-expected earnings, reports THE WALL STREET JOURNAL, "driven by the strong performance of its games business and its French telecoms and pay-TV units, and confirmed it still expects to post strong profit growth in 2009 despite the recession. The performance at UNIVERSAL MUSIC GROUP, however, continued to be hampered by declining sales of recorded music and restructuring charges."
"We are not spared by the crisis but it is having only a very slight impact on our business," CEO JEAN-BERNARD LEVY said. "We maintain our guidance of strong [full-year 2009] EBIT growth and solid adjusted net income, leading to another strong dividend," VIVENDI said in a statement.
Net profit for the three months to JUNE 30th rose 6.6% to eu711 million from eu667 million last year. Adjusted profit rose 8.1% to eu818 million from eu757 million. Adjusted earnings before interest and tax, or EBIT, the figure analysts follow to gauge VIVENDI's operating performance, rose 10.4% to eu1.51 billion from eu1.36 billion, above the eu1.41 billion forecast by analysts.
Music Division Down
Adjusted EBIT at UNIVERSAL MUSIC, reports THE JOURNAL, "fell 32% as recorded music sales fell sharply, and due to high restructuring charges linked to the reorganization of the business."