Regulatory News:
Vivendi (Paris:VIV):
Revenues of €3,184 M, +2.7%1 and +19.3% with
HavasIncome from operations of €340 M, +3.5%1
and +17.2% with HavasEBITA of €293 M, -5.2%1
and +5.7% with Havas
Vivendi confirms its 2017 annual outlook:
Revenues up by more than 5%2EBITA up by around
25%2
- UMG: excellent results for the first
nine months of the year; expects revenues to grow by around
10%3 and EBITA to improve by close to
20%3.
- Canal+ Group: improvement in
operating results in the third quarter of 2017, driven by positive
commercial momentum in France; confirmation of an EBITA target of
approximately €350 million for 2017.
- Vivendi invests in long-term value
creating projects and in businesses of the future, notably through
CanalOlympia, live, Dailymotion, Vivendi Content and Group Vivendi
Africa.
- Investments in video games generate
value. Vivendi does not intend to file a public tender offer for
Ubisoft shares, nor to acquire control of the company over the six
coming months. The current unrealized capital gain on the Ubisoft
investment is more than €1 billion.
1 At constant currency and perimeter compared to the third
quarter of 2016.2 Prior to the integration of Havas.3 At constant
currency.
First half of 2017
3rd quarter of 2017
Key Figures
% change year-on-year
% change year-on-year at constant currency
and perimeter4
Of which Havas ‘s contribution
% change year-on-year
% change year-on-year at constant currency
and perimeter5
Revenues
€5,437 M
+7.8%
+4.8 %
€3,184 M
€525 M
+19.3%
+ 2.7%
Income from
operations6,7
€401 M
- 9.0%
-11.1 %
€340 M
€44 M
+17.2%
+3.5%
EBITA6,7
€352 M
-9.2%
-11.0 %
€293 M
€34 M
+5.7%
-5.2%
of which UMG
€286 M +61.6% +58.4
% €156 M
-11.6%8
-7.7%8 Groupe Canal+ €171 M -40.5%
-41.9 %
€155 M +11.8%
+11.0%
EBIT7,9
€362 M
-31.5%
€310 M
+4.8%
Earnings attributable to Vivendi SA
shareowners7
€176 M
-80.7%
€223 M
-15.4%
Adjusted net income6,7
€320 M
+12.0%
€273 M
-19.6%
This press release contains unaudited consolidated results
established under IFRS, which were approved by Vivendi’s Management
Board on November 13, 2017, reviewed by the Vivendi Audit Committee
on November 14, 2017, and by Vivendi’s Supervisory Board on
November 16, 2017.
Vivendi's Supervisory Board met today under the chairmanship of
Vincent Bolloré and reviewed the Group’s Condensed Financial
Statements for the first nine months of 2017, which were approved
by the Management Board on November 13, 2017.
For the first nine months of 2017, revenues amounted to
€8,621 million, an 11.8% increase compared to the first nine
months of 2016, notably resulting from the consolidation of Havas
on July 3, 2017 (+€525 million). At constant currency and
perimeter10, revenues increased by 4.1% driven by Universal Music
Group’s growth (+10.9%) while Canal+ Group’s situation has slightly
improved (decrease of 1.6% for the first nine months of 2017,
compared to a decrease of 2.7% for the same period in 2016).
4 For the first half of 2017, the 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).5
For the third quarter of 2017, constant perimeter reflects the
impacts of the acquisition of Havas (July 3, 2017).6 Non-GAAP
measures.7 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.8 The third quarter of 2016 benefited from legal
settlement income and a one-time catch up in accounting for certain
streaming revenues. Excluding these items and at constant currency
and perimeter, EBITA would be up 6.2%.9 Vivendi made changes in the
presentation of its Consolidated Statement of Earnings as from
January 1, 2017. For a detailed description of these changes in
presentation and the reconciliations to previously published
financial data, please refer to annex IV of this Press Release.
For the third quarter of 2017, revenues amounted to
€3,184 million, up 19.3% compared to the third quarter of
2016. At constant currency and perimeter5, revenues increased by
2.7%, primarily driven by Universal Music Group’s growth (+5.3%)
while Canal+ Group’s situation continues to improve: revenues were
stable compared to the third quarter of 2016, vs. a decrease of
1.3% for the second quarter of 2017 compared to the second quarter
of 2016 and a decrease of 3.5% for the first quarter of 2017
compared to the first quarter of 2016.
Income from operations amounted to €741 million, up
1.4% compared to the first nine months of 2016, notably resulting
from the consolidation of Havas (+€44 million). At constant
currency and perimeter10, income from operations decreased by 5.2%;
Universal Music Group’s growth (+€82 million) partially offset
the decline of Canal+ Group (-€85 million, despite the
€30 million increase for the third quarter of 2017) and the
development costs incurred by New Initiatives.
It should be noted that, for the third quarter of 2017 alone,
income from operations rose to €340 million, an increase of
17.2% and of 3.5% at constant currency and perimeter5, compared to
the third quarter of 2016.
EBITA amounted to €645 million, a 3.0% decrease
compared to the first nine months of 2016, despite the
consolidation of Havas (+€34 million). At constant currency
and perimeter10, EBITA decreased by 8.6% due to lower income from
operations and the unfavorable change in other operating charges
and income (a net charge of €36 million compared to a net
charge of €4 million for the first nine months of 2016).
For the third quarter of 2017, EBITA amounted to
€293 million, up 5.7% and down 5.2% at constant currency and
perimeter5 compared to the third quarter of 2016.
EBIT amounted to €672 million, an 18.5% decrease
compared to the first nine months of 2016. The reversal of reserve
related to the Securities Class Action litigation in the United
States, which reached a final conclusion in April 2017, represented
a net profit of €27 million. For the first nine months of
2016, the reversal of reserve related to the Liberty Media
litigation in the United States represented a net profit of
€240 million. Telecom Italia, accounted for under the equity
method, contributed €91 million to EBIT for the first nine months
of 2017.
For the third quarter of 2017, EBIT amounted to
€310 million, a 4.8% increase compared to the third quarter of
2016.
Earnings attributable to Vivendi SA shareowners
amounted to a profit of €399 million (€0.32 per share),
compared to €1,175 million (€0.92 per share) for the same
period in 2016. This change primarily resulted from the favorable
impact of certain non-recurring items during the first nine months
of 2016 (the reversal of reserve related to the Liberty Media
litigation as well as the net capital gain on the sale of Vivendi’s
remaining interest in Activision Blizzard).
10 For the first nine months of 2017, constant perimeter
reflects the impacts of the acquisition of Havas (July 3, 2017),
Paddington Bear (June 30, 2016) which has been integrated into
Vivendi Village, Gameloft (June 29, 2016) and Thema America (April
7, 2016) by Canal+ Group.
Adjusted net income amounted to a profit of
€593 million (€0.47 per share), compared to €625 million
for the same period in 2016 (€0.49 per share), a decrease of 5.2%.
This change was mainly due to the decrease in EBITA and the
increase in interest expense.
Vivendi confirms its 2017 outlook. Revenues should
increase by more than 5% (prior to the integration of Havas) and,
thanks to the measures taken in 2016, EBITA should increase by
around 25% (prior to the integration of Havas).
In particular, UMG’s revenues are expected to increase by around
10%3 and its EBITA by close to 20%3. For the full-year 2017, Canal+
Group confirms its EBITA target of approximately €350 million,
compared to €240 million in 2016.
As of September 30, 2017, Vivendi’s financial net debt amounted
to €3.2 billion compared to a net cash position of €500 million as
of June 30, 2017. On the same date, Vivendi’s cash position
amounted to €2.6 billion, compared to €4.2 billion as of June 30,
2017.
Havas takeover
On July 3, 2017, Vivendi acquired the 59.2% interest in Havas
held by Bolloré Group.
Following completion of the simplified public tender offer that
ran from September 21 to October 4, 2017, and the subsequent
processing of an additional redemption request for approximately
1.6% of Havas’s share capital, as of October 11, 2017, Vivendi held
96.15% of Havas’s share capital. Due to the sharply reduced free
float, Vivendi decided to implement a public buyout
offer followed by a mandatory squeeze-out, which is expected
to be launched shortly.
The Havas acquisition comes at a time when Vivendi, after having
consolidated its foundations, is embarking on a new phase in its
development. This strategic transaction 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.
The Havas acquisition had a positive impact of €34 million on
Vivendi’s EBITA for the third quarter of 2017.
Ubisoft
Vivendi’s investments in video games are generating
value. Gameloft is the worldwide leader in mobile gaming
downloads, and the current unrealized capital gain on its Ubisoft
shares is more than €1 billion.
Given that this sector is the second largest in the content
industry after music, the Group confirms its intention to continue
to develop in this sector, but not necessarily through Ubisoft.
In anticipation of the receipt of double voting rights on its
Ubisoft shares on November 23, 2017, Vivendi states that in the
next six months:
- it does not intend to file a public
tender offer for Ubisoft shares nor to acquire control of the
company. To this end, Vivendi will ensure that its interest in
Ubisoft will not exceed the threshold of 30% in share capital or
voting right; and
- in view of the opposition expressed by
Ubisoft’s executive management, Vivendi will not seek
representation on its board of directors.
Comments on Business Key Financials
Universal Music Group performance driven by
subscription and streaming activities
Universal Music Group’s (UMG) revenues amounted to
€3,985 million, up 10.9% at constant currency and perimeter
compared to the first nine months of 2016 (+10.0% on an actual
basis).
Recorded music revenues grew by 12.1% at constant currency and
perimeter as growth in subscription and streaming revenues (+40.8%)
more than offset the continued decline in both download and
physical sales.
Music publishing revenues grew by 9.6% at constant currency and
perimeter, also driven by increased subscription and streaming
revenues, as well as growth in synchronization and performance
revenues.
Merchandising and other revenues were down 2.8% at constant
currency and perimeter, due to lower touring activity.
Recorded music best sellers for the first nine months of 2017
included new releases from Kendrick Lamar and Drake, carryover
sales from The Weeknd, the 50th Anniversary edition of Sgt.
Pepper’s Lonely Hearts Club Band by the Beatles, and soundtrack
releases from the movies Moana and La La Land.
UMG’s income from operations amounted to €472 million, up
20.9% at constant currency and perimeter compared to the first nine
months of 2016 (+20.5% on an actual basis) as a result of higher
revenues.
UMG’s EBITA amounted to €442 million, up 25.5% at constant
currency and perimeter compared to the first nine months of 2016
(+25.2% on an actual basis) as a result of higher revenues and
lower restructuring charges. EBITA for the first nine months of
2016 included a legal settlement income.
For the third quarter of 2017, excluding the legal settlement
income and a one-time catch up in accounting for certain streaming
revenues recognized in the third quarter of 2016, and at constant
currency and perimeter compared to the same period of 2016,
revenues amounted to €1,319 million, up 8.3%, and EBITA amounted to
€156 million, up 6.2%. Including these items and at constant
currency and perimeter compared to the same period of 2016,
revenues grew by 5.3% and EBITA was down 7.7%.
Canal+ Group: net recruitments increased
slightly in France for the third quarter, for the first time since
the beginning of 2015
Canal+ Group's revenues amounted to €3,825 million, down 2.0%
compared to the first nine months of 2016 (-1.6% at constant
currency and perimeter), improving quarter after quarter.
Charts are available on:
https://www.vivendi.com/en/press/press-releases/vivendi-delivers-strong-performance-in-the-3rd-quarter-of-2017-vivendi-confirms-its-2017-annual-outlook/
At the end of September 2017, Canal+ Group's individual
subscriber base reached 14.2 million, up 3.2 million
year-on-year, notably thanks to the wholesale agreements with
telecom operators, in particular Free and Orange.
Revenues from international pay-TV operations grew by 5.1%
compared to the first nine months of 2016 (+5.9% at constant
currency and perimeter), driven by a net increase in the subscriber
base of 574,000 year-on-year.
Revenues from pay-TV operations in mainland France were down
4.2% compared to the first nine months of 2016. The situation is
improving: the decline is slowing down, with -7.8% in the first
quarter of 2017, -2.6% in the second quarter of 2017 and -2% in the
third quarter of 2017 compared to the same periods of 2016. The
change in revenues is due to a reduction of the free-to-air window
on the Canal+ channel and lower subscription revenue, partially
offset by revenues generated from partnerships with internet
service providers.
In mainland France, the recovery of the individual subscriber
base was confirmed in the third quarter. For the first time since
the beginning of 2015, net recruitments were positive from one
quarter to the next: the subscriber base grew slightly in the third
quarter of 2017 with a net gain of 1,000 subscribers compared to a
decline over the same period in 2016. This favorable trend was
driven by an increase in the number of recruitments (for individual
subscribers with commitment: +43% in the third quarter of 2017 and
+14% for the first nine months of 2017 compared to the same periods
of 2016) combined with an improved churn rate (for individual
subscribers with commitment: -13% in the third quarter of 2017 and
-2% for the first nine months of 2017 compared to the same periods
of 2016).
Charts are available on:
https://www.vivendi.com/en/press/press-releases/vivendi-delivers-strong-performance-in-the-3rd-quarter-of-2017-vivendi-confirms-its-2017-annual-outlook/
Advertising revenues from free-to-air channels in mainland
France was slightly up by 0.7% in the third quarter of 2017
compared to the same period in 2016. It was down over the first
nine months of 2017, notably due to a loss of revenues at C8
resulting from the sanction imposed by the French Broadcasting
Authority (Conseil Supérieur de l’Audiovisuel) on June 7, 2017,
despite a strong attraction toward the channel, which is the leader
among DTT channels in France and the fifth most watched French
channel.
Studiocanal’s revenues were down compared to the first nine
months of 2016 despite the strong theatrical performances of
Alibi.com and La La Land (distributed by Studiocanal in Germany)
due to strong catalog sales in 2016. Major releases are scheduled
for the fourth quarter of 2017, including School of Life (L’Ecole
Buissonnière), Mary Me Dude (Epouse-Moi Mon Pote) and Paddington
2.
With the release of Paddington 2 on November 10, 2017,
Studiocanal had its biggest opening weekend yet at the UK box
office. The film opened in 606 sites, the company’s widest
release ever, bringing in a weekend total of £8.258 million (a 59%
increase over the opening box office sales for the first Paddington
movie in 2014).
Canal+ Group's income from operations amounted to
€360 million, compared to €439 million for the first nine
months of 2016.
EBITA amounted to €326 million, compared to
€427 million for the first nine months of 2016, notably due to
the increase in reorganization costs. EBITA for the second and
third quarters showed a clear improvement compared to the first
quarter of 2017.
Charts are available on:
https://www.vivendi.com/en/press/press-releases/vivendi-delivers-strong-performance-in-the-3rd-quarter-of-2017-vivendi-confirms-its-2017-annual-outlook/
On October 20 2017, Telecom Italia and Canal+ Group announced
the creation of a joint-venture held at 60% and 40%, respectively,
and focused on rights acquisition and production of films and TV
series.
The joint venture will support Telecom Italia in the development
of a unique pay-TV offer in Italy, both linear and nonlinear (SVOD,
VOD, catch-up). The joint venture will manage Italian and
international productions and co-productions, as well as the
acquisition of rights. The objective is to offer Telecom Italia
customers an innovative content offering allowing the operator to
develop its fixed and mobile broadband customer base.
Havas, strong improvement of the group’s
U.S. agencies in the third quarter
Vivendi has fully consolidated Havas since July 3, 2017.
Havas’s revenues (gross margin) amounted to €525 million for the
third quarter of 2017. The breakdown of revenues by geographical
market is as follow: 49 % in Europe (including 19% in France),
35% in North America, 9% in Asia Pacific and Africa, and 7% in
Latin America.
Revenues (gross margin) were up 0.1% organically for the third
quarter of 2017 compared to the third quarter of 2016, bouncing
back after the 0.9% decrease suffered in the second quarter of
2017.
The North America region delivered a strong performance (organic
growth of 2.9% for the third quarter of 2017 compared to the third
quarter of 2016), benefiting from the effects of a new organization
and the unflagging commitment of the teams.
The APAC and Africa regions (organic growth of 8.4% for the
third quarter of 2017 compared to the third quarter of 2016)
reported highly encouraging operating performances in a
macroeconomic climate less favorable than in the recent past.
The LATAM region reported organic growth of 13.4% for the third
quarter of 2017 compared to the third quarter of 2016.
The Europe region remained weak despite the dynamism of the
French agencies that recorded organic growth of 2.6% for the third
quarter of 2017 compared to the third quarter of 2016.
Havas’s financial results were impacted by lower spending by
advertisers, which affected the entire industry, and a business
slowdown in Europe, in particular in the United Kingdom.
Havas’s income from operations amounted to €44 million for the
third quarter of 2017 and EBITA amounted to €34 million.
During the third quarter of 2017, Havas won 143 awards in
various competitions.
Gameloft, sales on the Apple, Google and
Microsoft stores grew 8%
Gameloft’s revenues amounted to €193 million for the first
nine months of 2017. The breakdown of revenues by geographical
market was as follow: 34% in the EMEA region (Europe, the Middle
East and Africa), 28% in Asia Pacific, 27% in North America, and
11% in Latin America.
For the first nine months of 2017, Gameloft's monthly active
users (MAU) reached an average of 134 million and daily active
users (DAU) an average of 16 million.
66% of Gameloft’s revenues were generated by internally
developed franchises. Since the beginning of the year, Gameloft has
benefited from the strong performance of its back catalog, with
certain games such as Dragon Mania Legends, Disney Magic Kingdoms,
March of Empires, Asphalt 8: Airborne and Sniper Fury delivering
high revenue growth.
Revenues generated through the Apple, Google and Microsoft
stores (in-App sales) increased by 8% for the first nine months of
2017 compared to the same period of last year.
Gameloft’s performance was also driven by the dynamism of its
mobile advertising agency Gameloft Advertising Solutions, whose
sales increased to €27 million, up 129% year-on-year,
representing 13.8% of total revenues during the first nine months
of 2017.
Gameloft released eight new games on smartphone during the first
nine months of 2017: Gangstar New Orleans, N.O.V.A. Legacy, City
Mania, Blitz Brigade: Rival Tactics, Iron Blade, Asphalt Street
Storm Racing, War Planet Online and Modern Combat Versus.
Paddington™ Run, the official game of the second Paddington
movie, has been available on iPhone, iPad, Android and Windows
Phone since October 26, 2017. To successfully accomplish this
project, Gameloft’s studios worked closely with the creative teams
of Studiocanal and The Copyrights Group, the Vivendi Village
subsidiary managing the Paddington Bear licensing rights.
Thanks to an increase in revenues and good control of operating
costs, Gameloft’s income from operations amounted to
€3 million for the first nine months of 2017 and EBITA reached
breakeven.
Vivendi Village: very good performance from
Ticketing and the opening of a 7th CanalOlympia venue
in Africa
Vivendi Village’s revenues amounted to €81 million, a 4.0%
increase compared to the first nine months of 2016 (+7.6% at
constant currency and +8.7% at constant currency and
perimeter).
Over the same period, Vivendi Village’s income from operations
amounted to a loss of €8 million (€9 million for the first
nine months of 2016) and EBITA amounted to a loss of €19 million
(€9 million for the first nine months of 2016) due to
Watchever’s discontinuation.
Vivendi Ticketing’s activities, which generated revenues of €38
million for the first nine months of 2017, maintained strong
performances in the United Kingdom and in France, while the newer
U.S. business continues its satisfactory development (ticket sales
up by more than 30% in September compared to the average sales in
July and August).
CanalOlympia accelerated the development of its network with the
opening of a 7th cinema and entertainment venue in sub-Saharan
Africa in Lomé, Togo, on October 24, 2017. An additional venue is
set to be inaugurated shortly in Benin and four more are under
construction.
New initiatives: Dailymotion’s premium video
consumption up 60%; strong increase of Studio+ customers
New initiatives, which groups together projects being launched
or under development including Dailymotion, Vivendi Content
(including Studio+) and GVA (Group Vivendi Africa), had revenues
amounting to €34 million and operating income amounting to a
loss of €58 million.
Dailymotion significantly transformed its offer by launching a
new customer experience in July, making it easier to discover and
watch videos, tapping into users' interests and desires. Premium
video consumption is up 60% and the number of videos viewed during
one session is up 25%. The new interface was launched in the United
States in October with the support of several prestigious partners,
including the BBC, Bloomberg and Condé Nast Entertainment. The
worldwide roll-out will be completed during the fourth quarter of
2017.
Studio+, an innovative offer of short premium series,
experienced significant growth during the third quarter of 2017,
with 5.3 million customers (all forms of service provision
combined) at the end of September 2017, mainly thanks to a
strengthening of the agreements with telecom operators who are
making the service available to their subscribers in France, Italy
and Latin America. The service became available in the United
States through the App Store on November 7, 2017, and will soon be
available via Google Play. As an evidence of the quality of the
content proposed, two series produced by Studio+ have been
nominated for the International Emmy Awards to be held this
November 20.
On October 26, 2017, GVA launched its first ultra-high speed
fiber optic offer, Canalbox, in Libreville, Gabon, in partnership
with Canal+ Group. GVA invests in its own network, which it builds
and manages.
For additional information, please refer to the “Financial
Report and unaudited Condensed Financial Statements for the first
nine months of 2017” released online today on Vivendi’s website
(www.vivendi.com).
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), 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: November 16, 20176:00pm 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 (0) 1 76 77 22 57United
Kingdom: +44 (0) 330 336 94 11USA: +1 719 325 22 02Confirmation
code: 176 32 15
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)
Third quarter
Three months ended September 30, % Change 2017
2016
REVENUES 3,184 2,668 + 19.3% Cost
of revenues (1,693) (1,629) Selling, general and administrative
expenses excluding amortization of intangible assets acquired
through business combinations (1,151) (749)
Income from
operations* 340 290 + 17.2% Restructuring
charges (22) (14) Other operating charges and income (25) 1
Adjusted earnings before interest and income taxes (EBITA)*
293 277 + 5.7% Amortization and depreciation
of intangible assets acquired through business combinations (27)
(58) Reversal of reserves related to Securities Class Action and
Liberty Media litigations in the United States - - Income from
equity affiliates 44 76
EARNINGS BEFORE INTEREST AND INCOME
TAXES (EBIT) 310 295 + 4.8% Interest (13)
(10) Income from investments 13 6 Other financial charges and
income (13) (10)
(13) (14) Earnings before
provision for income taxes 297 281 + 5.8%
Provision for income taxes (63) (15)
Earnings from continuing
operations 234 266 - 11.8% Earnings from
discontinued operations - -
Earnings 234 266
- 11.7% Non-controlling interests (11) (2)
EARNINGS
ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS 223 264
- 15.4% Earnings attributable to Vivendi SA shareowners per
share - basic (in euros) 0.18 0.21 Earnings attributable to Vivendi
SA shareowners per share - diluted (in euros) 0.18 0.18
Adjusted net income* 273 339 - 19.6%
Adjusted net income per share - basic (in euros)* 0.22 0.27
Adjusted net income per share - diluted (in euros)* 0.22 0.23
* Non-GAAP measures.
NOTA: Vivendi made changes in the 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 third quarter of 2016 amounted to €295 million
(compared to €216 million as published in 2016) and EBIT for
the first nine months of 2016 amounted to €824 million
(compared to €1,278 million as published in 2016).
The non-GAAP measures of “Income from operations”, “adjusted
earnings before interest and income taxes (EBITA)” and “adjusted
net income”, 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 “Financial
Report and Unaudited Condensed Financial Statements for the nine
months ended September 30, 2017“, which will be released online
later on Vivendi’s website (www.vivendi.com).
APPENDIX
I(Cont’d)VIVENDISTATEMENT OF EARNINGS(IFRS,
unaudited)
First nine months
Nine months ended September 30, % Change 2017
2016
REVENUES 8,621 7,712 + 11.8% Cost
of revenues (5,091) (4,717) Selling, general and administrative
expenses excluding amortization of intangible assets acquired
through business combinations (2,789) (2,265)
Income from
operations* 741 730 + 1.4% Restructuring
charges (60) (62) Other operating charges and income (36) (4)
Adjusted earnings before interest and income taxes (EBITA)*
645 664 - 3.0% Amortization and depreciation
of intangible assets acquired through business combinations (92)
(168) Reversal of reserves related to Securities Class Action and
Liberty Media litigations in the United States 27 240 Income from
equity affiliates 92 88
EARNINGS BEFORE INTEREST AND INCOME
TAXES (EBIT) 672 824 - 18.5% Interest (38)
(27) Income from investments 28 28 Other financial charges and
income (48) 525
(58) 526 Earnings before provision
for income taxes 614 1,350 - 54.5%
Provision for income taxes (187) (150)
Earnings from continuing
operations 427 1,200 - 64.4% Earnings from
discontinued operations - (2)
Earnings 427
1,198 - 64.4% Non-controlling interests (28) (23)
EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS 399
1,175 - 66.1% Earnings attributable to Vivendi SA
shareowners per share - basic (in euros) 0.32 0.92 Earnings
attributable to Vivendi SA shareowners per share - diluted (in
euros) 0.32 0.89
Adjusted net income* 593
625 - 5.2% Adjusted net income per share - basic (in
euros)* 0.47 0.49 Adjusted net income per share - diluted (in
euros)* 0.47 0.45
* 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 September 30, Nine
months ended September 30, (in millions of euros) 2017 2016
2017 2016
Earnings attributable to Vivendi SA shareowners
(a) 223 264 399 1,175 Adjustments
Amortization and depreciation of intangible assets acquired through
business combinations 27 58 92 168 Amortization of intangible
assets related to equity affiliates 15 26 45 52 Reversal of
reserves related to Securities Class Action and Liberty Media
litigations in the United States (a) - - (27) (240) Other financial
charges and income 13 10 48 (525) Earnings from discontinued
operations (a) - - - 2 Provision for income taxes on adjustments
(2) (16) 43 1 Non-controlling interests on adjustments (3) (3) (7)
(8)
Adjusted net income 273 339 593
625
a. As reported in the Consolidated Statement of Earnings.
Adjusted Statement of Earnings
Three months ended September 30, Nine
months ended September 30, (in millions of euros) 2017 2016
2017 2016
Revenues 3,184 2,668
8,621 7,712 Income from operations 340
290 741 730 EBITA 293 277
645 664 Income from equity affiliates 59 102 137 140
Interest (13) (10) (38) (27) Income from investments 13 6 28 28
Adjusted earnings from continuing operations before provision for
income taxes 352 375 772 805 Provision for income taxes (65) (31)
(144) (149) Adjusted net income before non-controlling interests
287 344 628 656 Non-controlling interests (14) (5) (35) (31)
Adjusted net income 273 339 593
625
APPENDIX IIVIVENDIREVENUES, INCOME FROM
OPERATIONS AND EBITABY BUSINESS SEGMENT(IFRS, unaudited)
Third quarter
Three months ended September 30, (in millions of euros) 2017
2016 % Change % Change at constant currency
% Change at constant currency and perimeter (a)
Revenues Universal Music Group 1,319 1,308 +0.8% +5.3% +5.3%
Canal+ Group 1,257 1,263 -0.5% - - Havas 525 - na na na Gameloft 63
63 -0.3% +2.4% +2.4% Vivendi Village 25 24 +4.2% +6.8% +17.4% New
Initiatives 11 18 -36.6% -36.6% -12.6% Elimination of intersegment
transactions (16) (8) na na na
Total Vivendi 3,184
2,668 +19.3% +22.4% +2.7%
Income from operations Universal Music Group 161 174 -7.9%
-3.9% -3.9% Canal+ Group 174 142 +21.7% +21.0% +21.0% Havas 44 - na
na na Gameloft 1 4 -52.4% -88.1% -88.1% Vivendi Village (1) (1)
+18.8% +25.0% -50.0% New Initiatives (20) (8) x 2,4 x 2,4 x 2,4
Corporate (19) (21) +12.6% +14.4% +14.4%
Total Vivendi
340 290 +17.2% +19.2% +3.5%
EBITA Universal Music Group 156 176 -11.6% -7.7%
-7.7% Canal+ Group 155 139 +11.8% +11.0% +11.0% Havas 34 - na na na
Gameloft 1 2 -84.0% na na Vivendi Village (10) (5) -75.4% -73.7% x
2,4 New Initiatives (21) (11) -93.3% -93.3% -93.3% Corporate (22)
(24) +9.4% +11.1% +11.1%
Total Vivendi 293 277
+5.7% +7.8% -5.2%
na: not applicable.
a. Constant perimeter reflects the impacts of the acquisition of
Havas (July 3, 2017).
APPENDIX
II(Cont’d)VIVENDIREVENUES, INCOME FROM OPERATIONS AND
EBITABY BUSINESS SEGMENT(IFRS, unaudited)
First nine months
Nine months ended September 30, (in millions of euros) 2017
2016 % Change % Change at constant currency
% Change at constant currency and perimeter (a)
Revenues Universal Music Group 3,985 3,623 +10.0% +10.9%
+10.9% Canal+ Group 3,825 3,902 -2.0% -1.6% -1.6% Havas 525 - na na
na Gameloft 193 63 na na na Vivendi Village 81 78 +4.0% +7.6% +8.7%
New Initiatives 34 76 -54.8% -54.8% -32.1% Elimination of
intersegment transactions (22) (30) na na na
Total Vivendi
8,621 7,712 +11.8% +12.6% +4.1%
Income from operations Universal Music Group 472 391
+20.5% +20.9% +20.9% Canal+ Group 360 439 -18.1% -19.4% -19.5%
Havas 44 - na na na Gameloft 3 4 na na na Vivendi Village (8) (9)
+10.9% +22.8% +49.2% New Initiatives (58) (25) x 2,3 x 2,3 x 2,3
Corporate (72) (70) -2.3% -1.7% -1.7%
Total Vivendi
741 730 +1.4% +1.1% -5.2%
EBITA Universal Music Group 442 353 +25.2% +25.5% +25.5%
Canal+ Group 326 427 -23.5% -24.8% -24.9% Havas 34 - na na na
Gameloft - 2 na na na Vivendi Village (19) (9) x 2,1 -94.5% x 2,9
New Initiatives (59) (35) -69.5% -69.5% -69.5% Corporate (79) (74)
-6.8% -6.2% -6.2%
Total Vivendi 645 664
-3.0% -3.3% -8.6%
na: not applicable.
a. Constant perimeter reflects the impacts of the acquisition of
Havas (July 3, 2017), Paddington Bear (June 30, 2016) which has
been integrated into Vivendi Village, Gameloft (June 29, 2016) and
Thema America (April 7, 2016) by Canal+ Group.
APPENDIX IIIVIVENDICONSOLIDATED
STATEMENT OF FINANCIAL POSITION(IFRS, unaudited)
(in millions of euros) September 30,
2017
(unaudited)
December 31, 2016
ASSETS Goodwill 12,181 10,987 Non-current
content assets 2,107 2,169 Other intangible assets 440 310
Property, plant and equipment 918 671 Investments in equity
affiliates 4,504 4,416 Non-current financial assets 4,339 3,900
Deferred tax assets 865 752
Non-current assets 25,354
23,205 Inventories 212 123 Current tax receivables
358 536 Current content assets 1,412 1,054 Trade accounts
receivable and other 4,691 2,273 Current financial assets 294 1,102
Cash and cash equivalents 2,412 4,072
Current assets
9,379 9,160 TOTAL ASSETS
34,733 32,365 EQUITY AND LIABILITIES
Share capital 7,103 7,079 Additional paid-in capital 4,285 4,238
Treasury shares (670) (473) Retained earnings and other 5,966 8,539
Vivendi SA shareowners' equity 16,684 19,383
Non-controlling interests 314 229
Total equity 16,998
19,612 Non-current provisions 1,976 1,785 Long-term
borrowings and other financial liabilities 4,293 2,977 Deferred tax
liabilities 766 726 Other non-current liabilities 191 126
Non-current liabilities 7,226 5,614
Current provisions 373 356 Short-term borrowings and other
financial liabilities 1,556 1,104 Trade accounts payable and other
8,480 5,614 Current tax payables 100 65
Current liabilities
10,509 7,139 Total liabilities
17,735 12,753 TOTAL EQUITY AND
LIABILITIES 34,733 32,365
APPENDIX IVVIVENDICHANGES IN
PRESENTATION OF THE CONSOLIDATED STATEMENT OF EARNINGS(IFRS,
unaudited)
To ensure the consistency of the presentation of Vivendi’s
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 nine months of 2016, this
reclassification applies to a net income of €88 million;
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 nine months of 2016, the
reclassification applies to a net income of €542 million.
Moreover, the impacts related to transactions with shareowners
(except when directly recognized in equity), in particular the
€240 million reversal of reserve recorded in 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 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) 216 1,278 (84) 1,194
Reclassification + Income from equity affiliates + 76 + 88 + 81 +
169 - Other income - - 657 - 4 - 661 - Other charges + 3 + 115 + 70
+ 185
Earnings before interest and income taxes (EBIT) (new
definition) 295 824 63 887
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171116006285/en/
VivendiMediaParisJean-Louis Erneux, +33 (0)1 71 71
15 84Solange Maulini, +33 (0) 1 71 71 11 73orLondon(Teneo
Strategy)Tim Burt, +44 20 7240 2486orInvestor
RelationsParisLaurent Mairot, +33 (0) 1 71 71 35
13Xavier Le Roy, +33 (0)1 71 71 18 77Julien Dellys, +33 (0) 1 71 71
13 30Nathalie Pellet, +33 (0) 1 71 71 11 24
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