- Revenues: increase of 7.8% (+4.8% at
constant currency and perimeter)
- Operating results: after a decline
in the 1st quarter, strong recovery in the
2nd quarter. Continuation of UMG’s outstanding
results and beginning of the recovery of Canal+ France which
confirms its improving outlook for 2017
- Strengthening of the Management
Board from 5 to 7 members with the appointment of Gilles Alix and
Cédric de Bailliencourt
Regulatory News:
Vivendi (Paris:VIV):
H1 2017 Q1 2017 Q2 2017
Key figures
%
Change
YoY
% Change
YoY at
constant
currency
and
perimeter1
%
Change
YoY
% Change
YoY at
constant
currency
and
perimeter1
%
Change
YoY
% Change
YoY at
constant
currency
and
perimeter1
Revenues
€5,437 M
+7.8%
+4.8 %
€2,663 M
+6.9%
+3.4%
€2,774 M
+8.7%
+6.2%
EBITA2,3
€352 M
-9.2%
-11.0%
€149 M
-29.9%
-34.0%
€203 M
+16.0%
+17.1%
UMG €286 M +61.6% +58.4% €134 M
+71.3% +65.7% €152 M +53.8% +52.5%
Canal+ Group €171 M -40.5% -41.9% €57 M
-66.3% -67.5% €114 M -3.8% -5.5%
Adjusted net income2,3
€320 M
+12.0%
This press release contains unaudited consolidated results
established under IFRS, which were approved by Vivendi’s Management
Board on August 28, 2017, reviewed by the Vivendi Audit Committee
on August 29, 2017, and by Vivendi’s Supervisory Board on August
31, 2017. All footnotes can be found on page 7 of this press
release.
Vivendi's Supervisory Board met today under the chairmanship of
Vincent Bolloré and reviewed the Group’s Condensed Financial
Statements for the half-year ended June 30, 2017, which were
approved by the Management Board on August 28, 2017.
For the first half of 2017, revenues amounted to €5.437
billion (+7.8% and +4.8% at constant currency and perimeter),
confirming the upward trend started in the first quarter of 2017.
The increase was mainly due to Universal Music Group’s growth
(+14.0%) while Canal+ Group’s situation is improving slightly.
Canal+ Group’s revenues declined by 2.4% during the first half of
2017 compared to the same period in 2016, while revenues were down
5.5% for second half 2016. This positive trend was reinforced in
the second quarter of 2017 (-1.3% compared to the second quarter of
2016, vs. -3.5% for the first quarter of 2017 compared to the first
quarter of 2016).
EBITA amounted to €352 million, down 9.2% (-11.0% at
constant currency and perimeter). The trend was reversed in the
second quarter of 2017, with an EBITA of €203 million, up 16.0%
(+17.1% at constant currency and perimeter). This positive change
was primarily due to Universal Music Group’s growth. Canal+ Group’s
situation is improving (EBITA was down 5.5% for the second quarter
of 2017 compared to the same period in 2016, while it had declined
by 67.5% for the first quarter of 2017 compared to the same period
in 2016; EBITA doubled in the second quarter of 2017 compared to
the first quarter of 2017).
EBIT4 amounted to €362 million, down 31.5% for
first half 2017, impacted by an unfavorable accounting comparison
with the first half of 2016, which period reflected the reversal of
reserve (representing a net profit of €240 million) related to the
settlement of the Liberty Media litigation in the U.S. in February
2016. Vivendi’s share of Telecom Italia’s net earnings represented
an income of €44 million for the first half of 2017 (€23
million for the first half of 2016). Vivendi’s EBIT for the second
quarter of 2017 alone amounted to €177 million, up 22.7%.
Earnings attributable to Vivendi SA shareowners (IFRS)
amounted to a profit of €176 million, down 80.7%. This decrease
primarily resulted from the favorable impact of certain
non-recurring items during the first half of 2016 including the
reversal of reserve related to the Liberty Media litigation and the
net capital gain on the sale of Vivendi’s remaining interest in
Activision Blizzard in January 2016 (€576 million, before
taxes). Earnings attributable to Vivendi SA shareowners for the
second quarter of 2017 alone grew by 50.0% to €75 million.
Adjusted net income, which is not affected by these
non-recurring items, amounted to a profit of €320 million, up
12.0%.
As of June 30, 2017, Vivendi’s Net Cash Position amounted
to €500 million, compared to €473 million as of March 31,
2017, and €1,068 million as of December 31, 2016. Taking into
account the €2,324 million payment (including the financial
transaction tax) to Bolloré Group for the purchase of its 59.2%
interest in Havas on July 3, 2017, at a price of €9.25 per
share, Vivendi’s proforma financial net debt would approximately
amount to €1.8 billion.
Vivendi confirms its previously-announced 2017
outlook. Revenues should increase by more than 5% (excluding
Havas) and, thanks to the measures taken in 2016, EBITA should
increase by around 25% (excluding Havas). In particular, for the
full-year 2017, Canal+ Group confirms that its EBITA target of
approximately €350 million, compared to €240 million in 2016.
Havas takeover
On July 3, 2017, Vivendi acquired the 59.2% interest in Havas
held by the Bolloré Group.
This strategic transaction comes as Vivendi, after having
consolidated its foundations, enters a new phase in its
development. It allows it to accelerate the building of a leading
world-class content, media and communications group and gives
Vivendi a unique positioning in an environment in which content,
distribution and communications are converging. It provides a new
dimension to the Group to compete against powerful global
players.
This acquisition was made at a price consistent with industry
multiples and should be accretive to Vivendi’s net earnings per
share. Havas has been fully consolidated in Vivendi’s financial
statements since July 3, 2017. The integration is expected to have
a positive impact on the Group’s earnings for the second half of
2017.
In accordance with market regulations, Vivendi will launch a
simplified tender offer in the coming weeks for the remaining
interest in Havas, without seeking a delisting of Havas shares. On
August 29, 2017, Vivendi filed a draft offer document relating
to the tender offer with the French Autorité des marchés financiers
(the “AMF”).
Management and coordination activities at
Telecom Italia
Vivendi, as the largest shareholder of the Italian operator,
intends to promote a long-term strategy of developing the
convergence between telecommunications and content.
Vivendi confirmed that it considers that it does not exercise
any de facto control of Telecom Italia under Article 93 of the
Consolidated Law on Finance and Article 2359 of the Italian Civil
Code given that Vivendi’s interest in Telecom Italia is not
sufficient to allow it to exercise, on a stable basis, a dominant
influence at Telecom Italia shareholders’ meetings. All empirical
data unequivocally reveal that Vivendi is not in a position to
control Telecom Italia ordinary shareholders’ meetings.
The commencement of the exercise by Vivendi of “management and
coordination activities” of Telecom Italia, within the meaning of
Article 2497-bis of the Italian Civil Code, was acknowledged by
Telecom Italia’s Board of Directors with reference to the factual
and specific circumstances referred to in its press release issued
on August 4, 2017.
Regarding the existence of a position of control pursuant to
international accounting principles for consolidated financial
statements, Vivendi confirms that, at present, it does not have the
power to govern Telecom Italia's financial and operating policies,
according to IFRS 10.
Appointments
At a meeting held today, Vivendi’s Supervisory Board appointed
as members of Vivendi’s Management Board, Gilles Alix, Chief
Executive Officer of Bolloré Group, and Cédric de Bailliencourt,
Vice-Chairman and Chief Financial Officer of Bolloré Group.
Comments on Business Key Financials
Universal Music Group: double-digit revenues
growth and strong increase of operational results
Universal Music Group’s (UMG) revenues amounted to €2,666
million, up 14.0% at constant currency and perimeter compared to
the first half of 2016 (+15.2% on an actual basis), driven by
growth across all divisions.
Recorded music revenues grew by 15.6% at constant currency and
perimeter as growth in subscription and streaming revenues (+45.1%)
more than offset the continued decline in both download and
physical sales.
Music publishing revenues grew by 9.2% at constant currency and
perimeter also driven by growth in subscription and streaming
revenues, as well as growth in synchronization and performance
revenues. Merchandising and other revenues were up 2.2% at constant
currency and perimeter, driven by stronger retail sales.
Recorded music best sellers for the first half of 2017 included
new releases from Drake and Kendrick Lamar, the 50th Anniversary
edition of Sgt. Pepper’s Lonely Hearts Club Band by The Beatles,
carryover sales from The Weeknd and soundtrack releases from the
movies Moana and La La Land.
Luis Fonsi’s “Despacito”, featuring Daddy Yankee and Justin
Bieber, has become the most-streamed song of all time with over
five billion streams across all streaming platforms. The song is
the first non-English U.S. No. 1 in more than two decades and in
the U.K., it has become the longest-running foreign language No. 1
in history.
UMG’s income from operations amounted to €311 million, up
40.8% at constant currency and perimeter compared to the first half
of 2016 (+43.3% on an actual basis) as a result of higher
revenues.
UMG’s EBITA amounted to €286 million, up 58.4% at constant
currency and perimeter compared to the first half of 2016 (+61.6%
on an actual basis). EBITA included lower restructuring charges
compared to the first half of 2016.
Similar trends in sales and operating results from the first
half of the year have continued into the summer.
In April 2017, UMG and Spotify announced a new, multi-year
global license agreement. The deal advances their partnership to
ensure that streaming realizes its full transformational potential
for artists, labels and fans by delivering a comprehensive range of
music experiences, providing more flexibility for new releases, and
collaborating on innovative marketing campaigns across Spotify’s
platform. It also provides UMG with unprecedented access to
data.
In May 2017, UMG announced a strategic licensing agreement with
Tencent Music Entertainment Group, a leading digital music
distribution platform in China, providing vast multi-platform
distribution and marketing opportunities across China. UMG and
Tencent will also develop Abbey Road Studios China, a recording
studio inspired by the legendary London studio.
Canal+ Group: tangible signs of improvement
in revenues and EBITA seen in the second quarter
Canal+ Group’s revenues amounted to €2,568 million, down
2.7% compared to the first half of 2016. At constant currency and
perimeter, Canal+ Group’s situation slightly improved (a 2.4%
decrease in the first half of 2017, compared to a 5.5% decrease in
the second half of 2016).
At the end of June 2017, Canal+ Group’s individual subscriber
base reached 14.0 million, up 2.8 million year-on-year,
thanks to growth in international operations and the wholesale
agreements with Orange and Free.
Revenues from international pay-TV operations grew by 6.2%
compared to the first half of 2016 (+6.6% at constant currency and
perimeter), driven by a net increase in the subscriber base of
309,000 year-on-year.
Revenues from pay-TV operations in mainland France were down
5.3% compared to the first half of 2016, due to a reduction of the
free-to-air window on the Canal+ channel and a drop in subscriber
revenue due to a decrease in the individual subscriber base,
partially offset by revenues generated from partnerships with
internet service providers.
Advertising revenues from free-to-air channels in mainland
France decreased year-on-year, notably due to loss of revenues at
C8 resulting from the sanction imposed by the French Broadcasting
Authority (Conseil Supérieur de l’Audiovisuel), on June 7, 2017,
and despite a greater attraction toward the channel.
Studiocanal’s revenues were down compared to the first half of
2016, due to a better performing film line-up in 2016.
Canal+ Group’s income from operations amounted to
€186 million, compared to €297 million for the first half
of 2016.
EBITA amounted to €171 million, compared to
€288 million for the first half of 2016.
Canal+ Group recorded a strong performance for the second
quarter of 2017 with an EBITA of €114 million (-5.5% compared to
the second quarter of 2016), a doubling compared to the EBITA of
€57 million recorded in the first quarter of 2017 (-67.5%
compared to the first quarter of 2016).
Following in the footsteps of Orange and Free, on August 21,
2017, Canal+ France announced a partnership with Bouygues Telecom
which will offer its subscribers an entry-level family-oriented
package including popular theme channels and unlimited access to
video-on-demand with Canalplay.
In August 2017, Canal+ doubled the number of recruitments
(compared to August 2016) with the resumption of the French Ligue 1
football championship.
For the full year, Canal+ Group confirms its EBITA target of
approximately €350 million, compared to €240 million in 2016.
Gameloft: six new games and strong
performance of the back catalog
Gameloft’s revenues amounted to €130 million. The breakdown
of revenues by geographical market is as follows: 33% in the EMEA
region (Europe, the Middle East and Africa), 28% in Asia Pacific,
27% in North America, and 12% in Latin America.
Gameloft is benefiting in particular from the strong performance
of its back catalog, thanks to changes implemented in the teams
responsible for game updates and to an improvement in the
effectiveness of the customer acquisition policy since the
beginning of the year. Flagship games such as Dragon Mania Legends,
Disney Magic Kingdoms, March of Empires, Modern Combat 5 :
Blackout, Asphalt 8 : Airborne and Sniper Fury experienced strong
sales growth.
Gameloft announced that its game, Asphalt 8 : Airborne, has
exceeded the threshold of 300 million downloads, becoming one
of the most downloaded games in the history of mobile video
games.
Gameloft’s performance was also driven by its mobile advertising
agency Gameloft Advertising Solutions, whose sales increased to
€17 million, representing 13.1% of total revenues during the
first half of 2017.
Gameloft released six new games on smartphone during the first
half of 2017: Gangstar New Orleans, N.O.V.A. Legacy, City Mania,
Blitz Brigade Rival Tactics, Iron Blade and Asphalt Street Storm
Racing which registered 43 million downloads as of June 30,
2017.
Thanks to an increase in revenues and a slight decrease in
operating costs, Gameloft’s income from operations reached
€2 million for the first half of 2017. EBITA amounted to a
loss of €1 million.
During the first half of 2017, Gameloft's daily active users
(DAU) reached an average of 16 million and the number of
monthly active users (MAU) reached an average of
134 million.
Vivendi Village: strong dynamic of Vivendi
Ticketing and accelerated deployment of CanalOlympia venues
Vivendi Village’s revenues amounted to €56 million for the
first half of 2017, a 3.9% increase compared to the first half of
2016 (+7.9% at constant currency and +3.3% at constant currency and
perimeter). Over the same period, Vivendi Village’s income from
operations amounted to a loss of €7 million (-€8 million for
the first half of 2016) and EBITA amounted to a loss of €9 million
(-€4 million for the first half of 2016) due to investment
costs.
Benefitting from the flexible organization of small structures,
Vivendi Village is ground to experimentation and the launch of new
projects for the Group. For example, since its creation in 2016,
Olympia Production has produced or coproduced more than 600 shows
with a dozen artists in France, including headliners such as
Slimane and M Pokora.
In Africa, CanalOlympia accelerated the deployment of its
network, opening its sixth movie and entertainment venue in Senegal
in May 2017, with two more to be inaugurated (in Togo and Benin) in
September.
Vivendi Ticketing continues its dynamic performance with
revenues of €27 million for the first half of 2017 (+16.5% at
constant currency and perimeter) and a strong growth in income from
operations.
New Initiatives: Dailymotion’s
overhaul
New Initiatives, which groups together projects being launched
or developed including Dailymotion, Vivendi Content and GVA (Group
Vivendi Africa), had revenues and income from operations amounting
to €23 million and a loss of €38 million for the first
half of 2017, respectively. Dailymotion’s revenues amounted to €22
million, down 40.7% compared to the first half of 2016.
Dailymotion, the leading French website in terms of traffic with
300 million unique users per month globally, launched a new
interface on mobile and desktop in July 2017 with a premium content
offer focused on four main themes (news, sports, music, and
entertainment) that meets the expectations of 18 to 49 year-olds,
its new prime target audience. This new content offer is made
possible by partnerships concluded with hundreds of media groups
and first-class global brands.
Dailymotion has been wholly-owned by Vivendi since July 26, 2017
following the exercise by Orange of the put option on its remaining
10% interest in Dailymotion.
Studio+, an innovative premium short-form series offer, now has
800,000 subscribers with the prospect for very strong growth in the
subscriber base by the end of the year.
For additional information, please refer to the “Financial
Report and unaudited Condensed Financial Statements for the half
year ended June 30, 2017” released online today on Vivendi’s
website (www.vivendi.com).
Notes
1. Constant perimeter reflects the impacts of the acquisition of
Thema America by Canal+ Group (April 7, 2016), Gameloft (June 29,
2016) and Paddington Bear which has been integrated into Vivendi
Village (June 30, 2016).2. Non GAAP measures.3. Reconciliations of
EBIT to EBITA and to income from operations, as well as a
reconciliation of earnings attributable to Vivendi SA shareowners
to adjusted net income, are presented in Appendix I.4. Vivendi made
changes in the presentation of its Consolidated Statement of
Earnings as from January 1, 2017: please refer to Appendix IV
to this press release for a detailed description of these changes
in presentation and the reconciliations to the previously published
financial data.
About Vivendi
Vivendi is an integrated content, media and communications
group. The company operates businesses throughout the media value
chain, from talent discovery to the creation, production and
distribution of content. Universal Music Group is the world leader
in music, engaged in recorded music, music publishing and
merchandising. It owns more than 50 labels covering all music
genres. Canal+ Group is the leading pay-TV operator in France, also
engaged in Africa, Poland and Vietnam. Its subsidiary Studiocanal
is the leading European player in production, sales and
distribution of movies and TV series. Havas Group is one of the
world’s largest global communications group. It is organized
in three main business segments covering all the
communications disciplines: creativity, media expertise and
healthcare/wellness. Gameloft is a worldwide leader in mobile
games, with 2 million games downloaded per day. Vivendi Village
brings together the Paddington brand’s licensing activities,
Vivendi Ticketing (in the United Kingdom, the United States and
France), MyBestPro (expert counseling), Watchever (subscription
streaming services), the venues L’Olympia and Theâtre de L‘Œuvre in
Paris, and CanalOlympia in Africa, as well as Olympia Production.
With 300 million unique users per month, Dailymotion is one of the
biggest video content aggregation and distribution platforms in the
world. www.vivendi.com, www.cultureswithvivendi.com
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press
release contains forward-looking statements with respect to the
financial condition, results of operations, business, strategy,
plans and outlook of Vivendi, including the impact of certain
transactions, the payment of dividends and distributions, as well
as share repurchases. Although Vivendi believes that such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements
as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to, the risks
related to antitrust and other regulatory approvals as well as any
other approvals which may be required in connection with certain
transactions and the risks described in the documents of the Group
filed by Vivendi with the Autorité des marchés financiers (the
French securities regulator), which are also available in English
on Vivendi's website (www.vivendi.com). Investors and security
holders may obtain a free copy of documents filed by Vivendi with
the Autorité des marchés financiers at www.amf-france.org, or
directly from Vivendi. In addition, Havas’s specific risk factors
are described in its 2016 Annual Report available on the Havas
website (www.havas.com). Accordingly, we caution readers against
relying on such forward looking statements. These forward-looking
statements are made as of the date of this press release. Vivendi
disclaims any intention or obligation to provide, update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Unsponsored ADRs. Vivendi does not sponsor any American
Depositary Receipt (ADR) facility in respect of its shares. Any ADR
facility currently in existence is “unsponsored” and has no ties
whatsoever to Vivendi. Vivendi disclaims any liability in respect
of any such facility.
ANALYST CONFERENCE CALL
Speakers:Arnaud de PuyfontaineChief Executive
OfficerHervé PhilippeMember of the Management Board and
Chief Financial Officer
Date: August 31, 2017
6:00pm Paris time – 5:00pm London time –
12:00pm New York time
Media invited on a listen-only basis.The conference
will be held in English.Internet: The conference can be
followed on the Internet at: www.vivendi.com (audiocast)
Numbers to dial:France: +33 1 76 77 22 74United Kingdom:
+44 330 336 9105USA: +1 719 325 2213Confirmation
code: 2908591 (English) and 5610005 (French)
On our website www.vivendi.com will be available dial-in
numbers for the conference call and for replay (14 days), an audio
webcast and the slides of the presentation.
APPENDIX IVIVENDISTATEMENT OF
EARNINGS(IFRS, unaudited)
Second quarter
Three months ended
June 30,
% Change 2017 2016
REVENUES 2,774
2,553 + 8.7% Cost of revenues (1,706) (1,578)
Selling, general and administrative expenses excluding amortization
of intangible assets acquired through business combinations (820)
(763)
Income from operations* 248 212 +
16.5% Restructuring charges (34) (27) Other operating charges
and income (11) (11)
Adjusted earnings before interest and
income taxes (EBITA)* 203 174 + 16.0%
Amortization and depreciation of intangible assets acquired through
business combinations (40) (55) Reversal of reserves related to
Securities Class Action and Liberty Media litigations in the United
States - - Income from equity affiliates 14 25
EARNINGS BEFORE
INTEREST AND INCOME TAXES (EBIT) 177 144 +
22.7% Interest (10) (9) Income from investments 13 21 Other
financial charges and income (29) (28)
(26) (16)
Earnings before provision for income taxes 151
128 + 17.8% Provision for income taxes (66) (70)
Earnings from continuing operations 85 58 +
45.3% Earnings from discontinued operations - (1)
Earnings 85 57 + 46.4% Non-controlling
interests (10) (8)
EARNINGS ATTRIBUTABLE TO VIVENDI SA
SHAREOWNERS 75 49 + 50.0% Earnings
attributable to Vivendi SA shareowners per share - basic (in euros)
0.06 0.04 Earnings attributable to Vivendi SA shareowners per share
- diluted (in euros) 0.06 0.04
Adjusted net income*
165 187 - 11.9% Adjusted net income per share
- basic (in euros)* 0.13 0.15 Adjusted net income per share -
diluted (in euros)* 0.13 0.15
In millions of euros, except per share amounts.* Non-GAAP
measures.
NOTA: Vivendi made changes in presentation of its
Consolidated Statement of Earnings as from January 1, 2017. Please
refer to Appendix IV for a detailed description of these changes in
presentation and the reconciliations to previously published
financial data. Taking into account these reclassifications, EBIT
for the second quarter of 2016 amounted to €144 million
(compared to €94 million as published in 2016) and EBIT for
the first half of 2016 amounted to €529 million (compared to
€1,062 million as published in 2016).
“Income from operations”, “adjusted earnings before interest and
income taxes (EBITA)” and “adjusted net income”, all non-GAAP
measures, should be considered in addition to, and not as a
substitute for, other GAAP measures of operating and financial
performance. Vivendi considers these to be relevant indicators of
the group’s operating and financial performance. Vivendi Management
uses income from operations, EBITA and adjusted net income for
reporting, management and planning purposes because they exclude
most non-recurring and non-operating items from the measurement of
the business segments’ performances.
For any additional information, please refer to the “2017
Half-Year Financial Report“, which will be released online later on
Vivendi’s website (www.vivendi.com).
APPENDIX
I(Cont’d)VIVENDISTATEMENT OF EARNINGS(IFRS,
unaudited)
Half-Year
Six months ended
June 30,
% Change 2017 2016
REVENUES 5,437
5,044 + 7.8% Cost of revenues (3,398) (3,088)
Selling, general and administrative expenses excluding amortization
of intangible assets acquired through business combinations (1,638)
(1,516)
Income from operations* 401 440 -
9.0% Restructuring charges (38) (48) Other operating charges
and income (11) (5)
Adjusted earnings before interest and income
taxes (EBITA)* 352 387 - 9.2% Amortization
and depreciation of intangible assets acquired through business
combinations (65) (110) Reversal of reserves related to Securities
Class Action and Liberty Media litigations in the United States 27
240 Income from equity affiliates 48 12
EARNINGS BEFORE INTEREST
AND INCOME TAXES (EBIT) 362 529 - 31.5%
Interest (25) (17) Income from investments 15 22 Other financial
charges and income (35) 535
(45) 540 Earnings
before provision for income taxes 317 1,069 -
70.4% Provision for income taxes (124) (135)
Earnings from
continuing operations 193 934 - 79.4%
Earnings from discontinued operations - (2)
Earnings
193 932 - 79.4% Non-controlling interests (17)
(21)
EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS
176 911 - 80.7% Earnings attributable to
Vivendi SA shareowners per share - basic (in euros) 0.14 0.71
Earnings attributable to Vivendi SA shareowners per share - diluted
(in euros) 0.14 0.71
Adjusted net income* 320
286 + 12.0% Adjusted net income per share - basic (in
euros)* 0.26 0.22 Adjusted net income per share - diluted (in
euros)* 0.25 0.22
In millions of euros, except per share amounts.* Non-GAAP
measures.
APPENDIX
I(Cont’d)VIVENDISTATEMENT OF EARNINGS(IFRS,
unaudited)
Reconciliation of earnings attributable to Vivendi SA
shareowners to adjusted net income
Three months ended
June 30,
Six months ended
June 30,
(in millions of euros) 2017 2016 2017 2016
Earnings attributable to Vivendi SA shareowners (a)
75 49 176 911 Adjustments Amortization
and depreciation of intangible assets acquired through business
combinations 40 55 65 110 Amortization of intangible assets related
to equity affiliates 15 26 30 26 Reversal of reserves related to
Securities Class Action and Liberty Media litigations in the United
States (a) - - (27) (240) Other financial charges and income 29 28
35 (535) Earnings from discontinued operations (a) - 1 - 2
Provision for income taxes on adjustments 8 30 45 17
Non-controlling interests on adjustments (2) (2) (4) (5)
Adjusted net income 165 187 320
286
a. As reported in the Consolidated Statement of Earnings.
Adjusted Statement of Earnings
Three months ended
June 30,
Six months ended
June 30,
(in millions of euros) 2017 2016 2017 2016
Revenues 2,774 2,553 5,437 5,044
Income from operations 248 212 401
440 EBITA 203 174 352 387
Income from equity affiliates 29 51 78 38 Interest (10) (9) (25)
(17) Income from investments 13 21 15 22 Adjusted earnings from
continuing operations before provision for income taxes 235 237 420
430 Provision for income taxes (58) (40) (79) (118) Adjusted net
income before non-controlling interests 177 197 341 312
Non-controlling interests (12) (10) (21) (26)
Adjusted net
income 165 187 320 286
APPENDIX IIVIVENDIREVENUES,
INCOME FROM OPERATIONS AND EBITABY BUSINESS
SEGMENT(IFRS, unaudited)
Second quarter
Three months ended June 30, (in millions of euros) 2017
2016
% Change
% Change at
constant
currency
% Change at
constant
currency and
perimeter (a)
Revenues Universal Music Group 1,382 1,196 +15.5% +15.2%
+15.2% Canal+ Group 1,290 1,311 -1.6% -1.3% -1.3% Gameloft 62 - na
na na Vivendi Village 30 29 +4.1% +9.3% +3.1% New Initiatives 13 28
Elimination of intersegment transactions (3) (11)
Total Vivendi 2,774 2,553 +8.7%
+8.7% +6.2% Income from operations
Universal Music Group 170 115 +48.4% +47.6% +47.6% Canal+ Group 135
133 +1.9% +0.4% +0.4% Gameloft (2) - na na na Vivendi Village (3)
(4) New Initiatives (22) (8) Corporate (30) (24)
Total Vivendi 248 212 +16.5%
+17.1% +16.9% EBITA Universal Music
Group 152 98 +53.8% +52.5% +52.5% Canal+ Group 114 119 -3.8% -5.5%
-5.5% Gameloft (4) - na na na Vivendi Village (5) (4) New
Initiatives (22) (14) Corporate (32) (25)
Total Vivendi 203 174 +16.0%
+16.4% +17.1%
na: not applicable.
a. Constant perimeter reflects the impacts of the acquisitions
of Gameloft (June 29, 2016) and Paddington Bear (June 30,
2016) integrated into Vivendi Village.
APPENDIX
II(Cont’d)VIVENDIREVENUES, INCOME FROM OPERATIONS AND
EBITABY BUSINESS SEGMENT(IFRS, unaudited)
Half-Year
Six months ended June 30, (in millions of euros) 2017
2016 % Change
% Change at
constant
currency
% Change
at
constant
currency
and
perimeter (a)
Revenues Universal Music Group 2,666 2,315 +15.2% +14.0%
+14.0% Canal+ Group 2,568 2,639 -2.7% -2.3% -2.4% Gameloft 130 - na
na na Vivendi Village 56 54 +3.9% +7.9% +3.3% New Initiatives 23 58
Elimination of intersegment transactions (6) (22)
Total Vivendi 5,437 5,044 +7.8%
+7.5% +4.8% Income from operations
Universal Music Group 311 217 +43.3% +40.8% +40.8% Canal+ Group 186
297 -37.3% -38.8% -38.6% Gameloft 2 - na na na Vivendi Village (7)
(8) New Initiatives (38) (17) Corporate (53) (49)
Total Vivendi 401 440 -9.0%
-10.6% -11.1% EBITA Universal Music
Group 286 177 +61.6% +58.4% +58.4% Canal+ Group 171 288 -40.5%
-42.0% -41.9% Gameloft (1) - na na na Vivendi Village (9) (4) New
Initiatives (38) (24) Corporate (57) (50)
Total Vivendi 352 387 -9.2%
-11.0% -11.0%
na: not applicable.
- Constant perimeter reflects the impacts
of the acquisitions of Thema America (April 7, 2016) by Canal+
Group, Gameloft (June 29, 2016) and Paddington Bear
(June 30, 2016) integrated into Vivendi Village.
APPENDIX
IIIVIVENDICONSOLIDATED STATEMENT OF FINANCIAL
POSITION(IFRS, unaudited)
(in millions of euros) June 30, 2017
(unaudited)
December 31,
2016
ASSETS Goodwill 10,469 10,987 Non-current content assets
2,129 2,169 Other intangible assets 391 310 Property, plant and
equipment 613 671 Investments in equity affiliates 4,483 4,416
Non-current financial assets 4,227 3,900 Deferred tax assets 673
752
Non-current assets 22,985 23,205
Inventories 128 123 Current tax receivables 315 536 Current content
assets 822 1,054 Trade accounts receivable and other 2,127 2,273
Current financial assets 507 1,102 Cash and cash equivalents 3,766
4,072
Current assets 7,665 9,160
TOTAL ASSETS 30,650 32,365 EQUITY
AND LIABILITIES Share capital 7,080 7,079 Additional paid-in
capital 4,240 4,238 Treasury shares (670) (473) Retained earnings
and other 7,976 8,539
Vivendi SA shareowners' equity
18,626 19,383 Non-controlling interests 230 229
Total equity 18,856 19,612 Non-current
provisions 1,889 1,785 Long-term borrowings and other financial
liabilities 2,942 2,977 Deferred tax liabilities 701 726 Other
non-current liabilities 96 126
Non-current liabilities
5,628 5,614 Current provisions 327 356
Short-term borrowings and other financial liabilities 810 1,104
Trade accounts payable and other 4,984 5,614 Current tax payables
45 65
Current liabilities 6,166 7,139
Total liabilities 11,794 12,753
TOTAL EQUITY AND LIABILITIES 30,650
32,365
APPENDIX IVVIVENDICHANGES IN
PRESENTATION OF THE CONSOLIDATED STATEMENT OF EARNINGS(IFRS,
unaudited)
To ensure the consistency of the presentation of the
Consolidated Statement of Earnings with the one prepared by Bolloré
Group, which decided to fully consolidate Vivendi in its
Consolidated Financial Statements as from April 26, 2017, Vivendi
made the following changes in presentation of its Consolidated
Statement of Earnings as from January 1, 2017:
- income from equity affiliates is
reclassified to “Earnings Before Interest and Income Taxes” (EBIT),
given that the companies over which Vivendi exercises a significant
influence engage in operations that are similar in nature to the
group’s operations. For the first half of 2016, this
reclassification applies to a €12 million income; and
- the impacts related to financial
investment operations, which were previously reported in “other
operating charges and income” in EBIT, are reclassified to “other
financial charges and income”. They include capital gains or losses
on the divestiture or depreciation of equity affiliates and other
financial investments. For the first half of 2016, the
reclassification applies to a net income of €545 million.
Moreover, the impacts related to transactions with shareowners
(except when directly recognized in equity), in particular the
€240 million reversal of reserve recorded as of March 31, 2016
related to the Liberty Media litigation in the United States, are
maintained in EBIT.
In accordance with IAS 1, Vivendi has applied these changes in
presentation to all periods previously published:
2016 (in millions of euros) Three months ended
June 30,
Six months ended
June 30,
Three months ended
Sept. 30,
Nine months ended
Sept. 30,
Three months ended
Dec. 31,
Year ended
Dec. 31,
Earnings before interest and income taxes (EBIT) (as previously
published) 94 1,062 216 1,278
(84) 1,194 Reclassification + Income from equity
affiliates + 25 + 12 + 76 + 88 + 81 + 169 - Other income - 77 - 657
- - 657 - 4 - 661 - Other charges + 102 + 112 + 3 + 115 + 70 + 185
Earnings before interest and income taxes (EBIT) (new
definition) 144 529 295 824
63 887
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version on businesswire.com: http://www.businesswire.com/news/home/20170831006072/en/
MediaParisJean-Louis Erneux, +33 (0)1 71 71 15
84Solange Maulini, +33 (0) 1 71 71 11 73orLondonTim Burt
(Teneo Strategy)+44 20 7240 2486orInvestor
RelationsParisLaurent Mairot, +33 (0) 1 71 71 35
13Julien Dellys, +33 (0) 1 71 71 13 30
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