Vivendi Posts Decline in Core Earnings
August 25 2016 - 1:30PM
Dow Jones News
PARIS—European media group Vivendi SA reported a decline in its
second-quarter core earnings Thursday, as its French pay-TV group
Canal Plus continued to post losses in France.
Vivendi, which is run by its chairman and largest shareholder
Vincent Bolloré , said its adjusted net income dropped 3.1% to €187
million ($211 million) despite an improving performance at its
music business Universal Music Group.
The company reported a 41.5% drop in earnings before interest,
taxes, depreciation and amortization to €174 million as Canal Plus
continued to struggle. Vivendi said it had implemented a plan to
reduce costs by €300 million at Canal Plus, €60 million to €80
million of which would be realized this year.
Second-quarter revenue fell 1.9% to €2.55 billion on a
comparable basis from the same period last year.
Vivendi has made several acquisitions this year as it seeks to
build an integrated media group to challenge Sky PLC and Netflix
Inc. in Europe.
In April, the Paris-based company agreed to acquire Mediaset
SpA's pay-TV unit as part of a deal that included a 3.5% share swap
between the two companies. But Vivendi has been seeking to amend
the agreement after "significant differences in the analysis" of
the results of the unit, Mediaset Premium, emerged following the
deal.
On Thursday, Vivendi said the agreement could become void
September 30 as the two parties were unlikely to gain the European
Commission's clearance before that date.
The Italian company last week asked a Milan tribunal to enforce
its pact with Vivendi for the sale of its pay-TV unit, saying that
it could seek damages of more than €1.5 billion if Vivendi fails to
respect the accord.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
August 25, 2016 13:15 ET (17:15 GMT)
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