Regulatory News:
Vivendi (Paris:VIV):
Change at constant
currency and
Change perimeter(1)
First Half 2020 Key Figures year-on-year year-on-year
Revenues EUR7,576 M +3.0% -2.0%
EBITA(2,3) EUR735 M +2.4% -3.8%
EBIT(3) EUR660 M +2.3%
Earnings attributable to
Vivendi SE
shareowners(3) EUR757 M +45.7%
Adjusted net income(2,3) EUR583 M +5.4%
This press release contains unaudited condensed financial
results established under IFRS, which were approved by Vivendi's
Management Board on July 27, 2020, and reviewed by the Vivendi
Audit Committee on July 28, 2020, and by Vivendi's Supervisory
Board on July 30, 2020.
Vivendi's Supervisory Board met today under the chairmanship of
Yannick Bolloré and reviewed the Group's financial results for the
half-year ended June 30, 2020, which were approved by the
Management Board on July 27, 2020.
-- For the first half of 2020, revenueswere EUR7,576 million, up to 3.0%
(-2.0% at constant currency and perimeter) compared to the first half of
2019. This increase was mainly due to the growth in revenues of Vivendi's
two main businesses, UMG and Canal+ Group, demonstrating the resilience
of their subscription-related activities. The increase was partially
offset by the slowdown in the revenues of Havas Group and Vivendi Village,
which were affected by the COVID-19 pandemic. For the second quarter of
2020, affected by the lockdown measures taken in most countries, revenues
were EUR3,706 million, down 4.8% (-7.9% at constant currency and
perimeter) compared to the second quarter of 2019.
-- EBITA was EUR735 million, an increase of 2.4% compared to the first half
of 2019 (-3.8% at constant currency and perimeter). The EBITA growth at
Universal Music Group (+EUR81 million) and Canal+ Group (+EUR20 million)
was notably offset by the EBITA slowdown at Havas Group (-EUR67 million).
-- Other financial charges and income were a net income of EUR417 million,
compared to a net income of EUR91 million for the first half of 2019,
representing a favorable change of EUR326 million. This amount included
the revaluation of the interests in Spotify and Tencent Music for a net
amount of EUR449 million, compared to EUR155 million for the same period
in 20194.
-- Provision for income taxes reported to net income was a net charge of
EUR299 million, compared to a net charge of EUR182 million for the same
period in 2019. This change notably reflected the increase in the
deferred tax charge related to the revaluation of the interests in
Spotify and Tencent Music (-EUR110 million, compared to -EUR37 million
for the first half of 2019).
-- Earnings attributable to non-controlling interests were EUR84 million,
compared to EUR10 million for the first half of 2019. This increase
mainly reflected the Tencent-led consortium's share (EUR64 million) of
Universal Music Group's net earnings as from March 31, 2020.
-- Earnings attributable to Vivendi SE shareowners amounted to a profit of
EUR757 million (or EUR0.66 per share - basic), compared to EUR520 million
for the first half of 2019 (or EUR0.41 per share - basic), an increase of
EUR237 million. This change mainly reflected the improvement in other
financial charges and income (+EUR326 million) generated by the
revaluation of the interests in Spotify and Tencent Music (+EUR294
million).
-- Adjusted net income was a profit of EUR583 million (or EUR0.51 per share
- basic), compared to EUR554 million for the first half of 2019 (or
EUR0.44 per share - basic), an increase of 5.4%.
-- The first half of 2020 was marked by strong cash generation (CFFO) of
EUR338 million, compared to EUR36 million in the first half of 2019,
thanks to Canal+ Group and after significant content investments by UMG.
-- Vivendi's balance sheet is particularly healthy. During the first half of
2020, Vivendi's net financial debt fell by EUR1,007 million, from
EUR4,064 million as of December 31, 2019 to EUR3,057 million as of June
30, 2020. This change notably includes a return to shareholders
(dividends and share buybacks) of EUR1.4 billion, compared to EUR3.3
billion in 2019 (dividends and share buybacks), and the sale of 10% of
UMG's share capital for EUR2.8 billion. The Group has significant
financing capacity. As of June 30, 2020, the Group's credit lines
(Vivendi SE and Havas SA) were available in the amount of EUR3.7 billion.
As of June 30, 2020, the average "economic" term of the financial debt,
calculated based on the assumption that available medium-term credit
lines may be used to redeem the group's shortest-term borrowings, is 5.0
years. With consolidated equity of EUR17.4 billion, the gearing rate
(ratio of net debt to equity) was 17.5%.
Although the COVID-19 pandemic is having a more significant
impact on certain countries or businesses than others, Vivendi has
been able to demonstrate resilience and adapt in order to continue
to best serve and entertain its customers, while reducing costs to
preserve its margins. The business activities showed good
resistance, in particular music and pay television. However, as
anticipated when the first-quarter revenues were released, Havas
Group, Vivendi Village and Editis were affected by the effects of
the public health crisis. However, Editis has been enjoying a
strong rebound in its business since the end of the lockdown in
France.
Vivendi carefully analyzes the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact its annual results. Businesses related
to advertising and live performance are likely to be affected
longer than others. Nevertheless, the Group remains confident in
the resilience of its main businesses. It continues to make every
effort to ensure the continuity of its activities and best serve
and entertain its customers and audiences while complying with the
authorities' guidelines in each country where it operates.
A review of the value of assets with an indefinite life, in
particular the goodwill, was performed. Taking into account the
performance achieved during the first half of the year by the
business units, Vivendi did not identify any indications of a
decrease in the recoverable amount compared to December 31, 2019,
based on the sensitivity analyses performed.
SUCCESSFUL OPENING OF UMG'S SHARE CAPITAL
On March 31, 2020, Vivendi completed the sale of 10% of UMG's
share capital to a consortium led by Tencent, based on an
enterprise value of EUR30 billion for 100% of UMG.
The consortium, led by Tencent and including Tencent Music
Entertainment and other financial co-investors, has the option to
acquire, on the same valuation basis, up to an additional 10% of
the share capital of UMG until January 15, 2021. This transaction
is complemented by a separate agreement allowing Tencent Music
Entertainment to acquire a minority stake in the capital of the UMG
subsidiary owning its Chinese activities.
Following the success of this important strategic agreement,
Vivendi is pursuing the possible sale of additional minority
interests in UMG with the assistance of several mandated banks. An
IPO is scheduled for early 2023 at the latest.
ACQUISITION BY BANIJAY OFEMOL SHINE GROUP
Banijay's acquisition of Endemol Shine Group was finalized on
July 3, 2020. This transaction creates the world leader in the
production and distribution of audiovisual content, with annual
revenues of around EUR2.7 billion (pro-forma 2019). Vivendi's
support for this transaction (the Group owns 32.9% of the new
entity) is part of its desire to build a world leader in culture,
at the crossroads of the entertainment, media and communication
industries.
Present in 22 countries, the new group has a portfolio of
world-famous audiovisual programs, both streamed programs (Big
Brother, Master Chef, The Wall, etc.) and scripted programs (Black
Mirror, Humans, Tin Star, ...). It also has an unrivaled
distribution network, the two entities having complementary
geographic locations.
SHARE BUYBACK PROGRAM
Between January 1 and March 6, 2020, Vivendi repurchased 23
million of its own shares, representing EUR559 million. Since April
20, 2020, the Group has repurchased 8.25 million of its own shares
(i.e., 0.70% of its share capital), representing EUR160
million.
As of July 29 2020, Vivendi holds 35.2 million treasury shares
(i.e., 2.97% of its share capital), of which 19.1 million shares
designated for cancellation, 7.5 million shares allocated to
covering performance share plans and 8.6 million allocated to
covering employee shareholding plans.
COMMENTS ON THE BUSINESSES
Universal Music Group
For the first half of 2020, Universal Music Group's (UMG)
revenues were EUR3,459 million, up 3.5% at constant currency and
perimeter compared to the first half of 2019 (+6.2% on an actual
basis).
Recorded music revenues grew by 3.7% at constant currency and
perimeter thanks to the growth in subscription and streaming
revenues (+12.4%) and the receipt of a digital royalty claim. This
increase was achieved despite the impact of the COVID-19 pandemic,
which mainly affected the second quarter of 2020. Physical sales
were down 22.4% compared to the first half of 2019, while download
sales declined by 23.1%.
Recorded music best sellers for the first half of 2020 included
new releases from The Weeknd, Justin Bieber, King & Prince,
Eminem and Lil Baby, as well as continued sales from Billie Eilish
and Post Malone.
UMG ended the first half of 2020 with seven of the Top 10 most
consumed artists in the United States, according to Nielsen. In
addition, UMG took a number of important steps in continuing to
expand its global footprint, opening offices in Morocco and Israel,
launching Def Jam Africa based in South Africa and Nigeria, and
announcing key partnerships with Sugar (Italy), The Aristokrat
Group (Africa), and Desi Melodies (India), among others.
Music publishing revenues grew by 21.2% at constant currency and
perimeter compared to the first half of 2019, driven by increased
subscription and streaming revenues, as well as the receipt of a
digital royalty claim, separate from the one mentioned in recorded
music.
For the first half of 2020, Universal Music Publishing Group
(UMPG) complemented strong results with a number of notable
signings around the world and across genres, including Taylor
Swift, Kenny Chesney, Surfaces, Luke Combs, Marisa Monte and
Meduza.
Merchandising and other revenues were down 41.4% at constant
currency and perimeter compared to the first half of 2019, due to
the impact of the COVID-19 pandemic on both touring and retail
activity.
For the first half of 2020, UMG's EBITA was EUR567 million, up
16.6% at constant currency and perimeter compared to the first half
of 2019 (+18.0% on an actual basis) driven by revenue growth and
cost control.
On July 22, 2020, UMG and Spotify announced a new, multi-year
global license agreement that further aligns the companies' efforts
to foster groundbreaking new features providing value for artists
and great experiences for music fans.
Canal+ Group
Canal+ Group's revenues were EUR2,674 million, up 6.2% compared
to the first half of 2019. At constant currency and perimeter,
revenues slightly decreased (-1.6%).
Canal+ Group's total subscriber portfolio (individual and
collective) reached 20.4 million, compared to 17.1 million for the
first half of 2019, including 8.6 million in mainland France.
Revenues from television operations in mainland France decreased
slightly compared to the first half of 2019 (-2.1% at constant
currency and perimeter), in a context marked by a downturn in the
advertising market due to the COVID-19 pandemic.
Revenues from international operations rose sharply by 30.5%
(+5.2% at constant currency and perimeter), thanks to the
outstanding year-on-year growth in the number of subscribers (+3.2
million), which was driven both by organic growth and the
integration of M7.
Studiocanal's revenues declined by 30.5% compared to the same
period in 2019, as theatrical film distribution was particularly
affected by the COVID-19 pandemic.
Canal+ Group's EBITA before restructuring charges was EUR329
million, compared to EUR236 million for the first half of 2019
(+16.2% at constant currency and perimeter). After restructuring
charges, EBITA was EUR300 million, compared to EUR233 million for
the same period in 2019 (+7.0% at constant currency and
perimeter).
Canal+ Group continues to focus on the tracking of its
expenditures and investments. The first half of 2020 confirmed
Canal+ Group's ambition to build, from a foundation of the best of
cinema, sports and series, a gateway to the world's leading
applications and channels. Canal+ Group became the exclusive French
distributor of the new Disney+ streaming service, available as part
of Canal+ offers since April 7. Canal+ Group can further extend the
reach of Disney+ through third-party distribution partners such as
Internet Service Provider. Since June 1, Canal+ Group became the
exclusive French distributor of beIN Sports channels to third-party
providers across all platforms in mainland France, for the next
five years.
Havas Group
As anticipated, the second quarter of 2020 was significantly
impacted by the COVID-19 pandemic. Havas Group reacted swiftly to
ensure the safety of its employees and continuity of business for
all its clients around the world. This unprecedented public health
crisis has affected the entire communications industry, as some
advertisers were forced to postpone or cancel a number of
campaigns. All divisions felt the impact, except for Havas Health
& You, which continues to report positive performance thanks to
the gains in market share achieved last year.
In these highly challenging times, for the first half of 2020,
Havas Group reported revenues of EUR1,019 million, down 8.5%. Net
revenues(5) were EUR977 million, down 7.9% compared to the first
half of 2019. Organic growth was -11.2% (-3.3% for the first
quarter of 2020 and -18.3% for the second quarter); exchange rates
had a positive impact of 0.9%, and acquisitions contributed
2.4%.
In terms of regions, at the end of June, North America delivered
a satisfactory performance thanks to a resilient market and growth
in health communications. Europe was severely affected by the
pandemic. However, the agencies in the United Kingdom and Germany
have proven more resistant than others. Both Asia-Pacific and Latin
America recorded sharp declines.
For the first half of 2020, EBITA was EUR46 million, compared to
EUR108 million for the same period in 2019. This change was due to
the sharp downturns in activity reported by both the Media and
Creative divisions.
A cost-reduction plan was implemented in both divisions in the
early weeks of the crisis and, by the end of June, Havas Group had
already absorbed nearly half the decline in revenues (before
restructuring costs).
Editis
For the first half of 2020, Editis' revenues were EUR262
million, down 15.1% at constant currency and perimeter compared to
the first half of 2019. The COVID-19 pandemic impacted all of
Editis' activities with the shut-down of most of the publishing
sector's points of sale.
However, a strong market recovery, especially for Editis, which
enjoyed a revenue increase of 38.0% in June, helped offset the
negative impact of the lockdown period on sales. Editis' revenues
were down approximately 40% between March, April and May compared
to the same period in 2019.
In addition, nine of Editis' titles were among the Top 25
best-sellers in the first half of 2020, up 50% compared to the same
period in 2019, including Au soleil redouté by Michel Bussi, La
Vallée by Bernard Minier, Nos résiliences by Agnès Martin-Lugand or
Fait maison by Cyril Lignac.
Editis also takes pride in the prestigious literary awards its
authors have received, such as the "Grand Prix du polar des
Lectrices de Elle" awarded to Tess Sharpe for Mon Territoire, the
"Prix Maison de la Presse 2020" awarded to Caroline Laurent for
Rivage de la colère, and the "Prix France Télévisions
#MonLivreDeLété" awarded to François Durpaire for Histoire mondiale
du bonheur.
Publishing houses such as the Trédaniel Group, L'Iconoclaste and
Les Arènes chose Editis as their distribution and/or diffusion
partner starting in 2021.
For the first half of 2020, impacted by the lockdown, Editis'
EBITA was -EUR21 million, compared to -EUR5 million for the same
period in 2019 (pro forma).
Other businesses
For the second quarter of 2020, Gameloft's revenues were EUR69
million, up 6.5% year-on-year, with sales on OTT platforms (Apple,
Google, Microsoft, etc.) up by 16.3%. For the first half of 2020,
revenues were EUR130 million, down 2.2% year-on-year. Gameloft's
sales on OTT platforms increased by 3.6% for the first half of 2020
and accounted for 76% of Gameloft's total sales. Gameloft
registered 1.6 million downloads per day across all platforms in
the first half of 2020.
The lockdown measures imposed in Europe and Africa during the
first half of 2020 had a significant impact on Vivendi Village.
After a very strong start to the year, the live performance, venues
and ticketing activities came to a virtual standstill in the second
quarter of 2020. Cost-reduction measures have been put in place. In
addition, live performance has launched innovative initiatives to
maintain a connection with festival-goer communities: in London,
Junction 2V, held on July 11 and 12, 2020, was an entirely virtual
festival, and smaller festivals will be organized this summer.
In the first half of 2020, the revenues of New Initiatives,
which brings together the Dailymotion and GVA entities, were EUR28
million, compared to EUR34 million in the first half of 2019.
In the first half of 2020, Dailymotion's audience for premium
content grew by more than 35% compared to the first half of 2019.
This growth was driven in particular by new partnerships such as
those with CNN and Barstool Sports in the United States, Ooreka and
Numerama in France, Daily Mail in the United Kingdom, Film Affinity
in Spain, Bilan in Switzerland, Cocina al Natural in Mexico, News
Nation in India and Amarin in Thailand. Dailymotion's programmatic
monetization platform also continues to grow with the integration
of Amazon, following that of The Trade Desk, DV 360 and
Verizon.
GVA, a telecoms operator in Africa, launched the sale of its
very high-speed Internet offers in March 2020 in two new capitals,
Abidjan (Côte d'Ivoire) and Kigali (Rwanda), strengthening its
presence on the continent. In June 2020, after launching its
Canalbox PREMIUM offer (50 Mb/s) and CanalboxPRO offers in Pointe
Noire (Republic of the Congo) the previous year, GVA expanded its
commercial offer by launching START (very high speed at 10
Mb/s).
CALAR
October 20, 2020: Q3 2020 revenues release June 22, 2021: annual
shareholders meeting with the payment of the 2020 dividend under
the same conditions as before.
For additional information, please refer to the "Financial
Report and Unaudited Condensed Financial Statements for the
half-year ended June 30, 2020" which will be released later online
on Vivendi's website (www.vivendi.com).
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group with European roots. In
content creation, Vivendi owns powerful, complementary assets in
music (Universal Music Group), movies and series (Canal+ Group),
publishing (Editis) and mobile games (Gameloft) which are the most
popular forms of entertainment content in the world today. In the
distribution market, Vivendi has acquired the Dailymotion platform
and repositioned it to create a new digital showcase for its
content. The Group has also joined forces with several telecom
operators and platforms to maximize the reach of its distribution
networks. In communications, through Havas. the Group possesses
unique creative expertise in promoting free content and producing
short formats, which are increasingly viewed on mobile devices. In
addition, through Vivendi Village, the Group explores new forms of
business in live entertainment, franchises and ticketing that are
complementary to its core activities. Vivendi's various businesses
cohesively work together as an integrated industrial group to
create greater value. www.vivendi.com
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press
release contains forward-looking statements with respect Vivendi's
financial condition, results of operations, business, strategy,
plans and outlook, including the impact of certain transactions and
the payment of dividends and distribution, 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. 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.
Although the COVID-19 pandemic is having a more significant
impact on certain countries or businesses than others, Vivendi has
been able to demonstrate resilience and adapt in order to continue
to best serve and entertain its customers, while reducing costs to
preserve its margins. The business activities showed good
resistance, in particular music and pay television. However, as
anticipated when the first-quarter revenues were released, Havas
Group, Vivendi Village and Editis were affected by the effects of
the public health crisis. However, Editis has been enjoying a
strong rebound in its business since the end of the lockdown in
France.
Vivendi carefully analyzes the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact its annual results. Businesses related
to advertising and live performance are likely to be affected
longer than others. Nevertheless, the Group remains confident in
the resilience of its main businesses. It continues to make every
effort to ensure the continuity of its activities and best serve
and entertain its customers and audiences while complying with the
authorities' guidelines in each country where it operates.
A review of the value of assets with an indefinite life, in
particular the goodwill, was performed. Taking into account the
performance achieved during the first half of the year by the
business units, Vivendi did not identify any indications of a
decrease in the recoverable amount compared to December 31, 2019,
based on the sensitivity analyses performed.
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 Puyfontaine
Chief Executive Officer
Hervé Philippe
Member of the Management Board and Chief Financial Officer
Date: July 30, 2020
6:15pm Paris time -- 5:15pm London time -- 12:15pm New York
time
Media invited on a listen-only basis.
Internet: The conference can be followed on the Internet at:
www.vivendi.com/en/investment-analysts/ (audiocast)
Dial-in details for the conference call that will be held in
English:
France +33 (0) 1 7099 4740
UK +44 (0) 20 3003 2666
USA +1 212 999 6659
Code Vivendi
The dial-in numbers for the conference call and replay, an audio
webcast and the presentation slides will be available on our
website www.vivendi.com.
APPIX I
VIVI
CONDENSED STATEMENT OF EARNINGS
(IFRS, unaudited)
Six months ended June 30, % Change
2020 2019
REVENUES 7,576 7,353 + 3.0%
Cost of revenues (4,101) (4,054)
Selling, general and administrative
expenses excluding amortization of
intangible assets acquired through
business combinations (2,629) (2,543)
Income from operations* 846 756 + 11.8%
Restructuring charges (53) (22)
Other operating charges and income (58) (16)
Adjusted earnings before interest
and income taxes (EBITA)* 735 718 + 2.4%
Amortization and depreciation of
intangible assets acquired through
business combinations (75) (73)
Other charges and income - -
EARNINGS BEFORE INTEREST AND INCOME
TAXES (EBIT) 660 645 + 2.3%
Income from equity affiliates -
non-operational 64 (8)
Interest (16) (21)
Income from investments 15 5
Other financial charges and income 417 91
416 75
Earnings before provision for
income taxes 1,140 712 + 60.0%
Provision for income taxes (299) (182)
Earnings from continuing operations 841 530 + 58.6%
Earnings from discontinued
operations - -
Earnings 841 530 + 58.6%
Non-controlling interests (84) (10)
EARNINGS ATTRIBUTABLE TO VIVI SE
SHAREOWNERS 757 520 + 45.7%
Earnings attributable to Vivendi SE
shareowners per share - basic (in
euros) 0.66 0.41
Earnings attributable to Vivendi SE
shareowners per share - diluted
(in euros) 0.65 0.41
Adjusted net income* 583 554 + 5.4%
Adjusted net income per share -
basic (in euros)* 0.51 0.44
Adjusted net income per share -
diluted (in euros)* 0.50 0.43
In millions of euros, except per share amounts.
* non-GAAP measures.
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. Furthermore, as of June 30,
2020, in the context of the COVID-19 pandemic, Vivendi has not
changed the definition of these indicators, which are therefore
comparable to fiscal year 2019.
For any additional information, please refer to the "Financial
Report for the half-year 2020", which will be released online later
on Vivendi's website (www.vivendi.com).
APPIX I (Cont'd)
VIVI
CONDENSED STATEMENT OF EARNINGS
(IFRS, unaudited)
Reconciliation of earnings attributable to Vivendi SE
shareowners to adjusted net income
Six months ended June 30,
(in millions of euros) 2020 2019
Earnings attributable to Vivendi SE shareowners
(a) 757 520
Adjustments
Amortization and depreciation of intangible
assets acquired through business combinations 75 73
Amortization of intangible assets related to
equity affiliates 30 30
Other financial charges and income (417) (91)
Provision for income taxes on adjustments 106 34
Impact of adjustments on non-controlling
interests 32 (12)
Adjusted net income 583 554
1. As reported in the Condensed Statement of Earnings.
Adjusted Statement of Earnings
Six months ended June 30, % Change
(in millions of euros) 2020 2019
Revenues 7,576 7,353 + 3.0%
Income from operations 846 756 + 11.8%
EBITA 735 718 + 2.4%
Other charges and income - -
Income from equity affiliates -
non-operational 94 22
Interest (16) (21)
Income from investments 15 5
Adjusted earnings from continuing
operations before provision for
income taxes 828 724 + 14.4%
Provision for income taxes (193) (148)
Adjusted net income before
non-controlling interests 635 576
Non-controlling interests (52) (22)
Adjusted net income 583 554 + 5.4%
APPIX II
VIVI
REVENUES, INCOME FROM OPERATIONS AND EBITA BY BUSINESS
SEGMENT
(IFRS, unaudited)
Six months ended
June 30,
% Change
at
constant
% Change currency
at and
(in millions of constant perimeter
euros) 2020 2019 % Change currency (a)
Revenues
Universal Music
Group 3,459 3,258 +6.2% +4.5% +3.5%
Canal+ Group 2,674 2,518 +6.2% +6.5% -1.6%
Havas Group 1,019 1,114 -8.5% -9.4% -11.7%
Editis 262 260 +0.6% +0.6% -15.1%
Gameloft 130 133 -2.2% -3.0% -3.0%
Vivendi Village 26 66 -61.0% -61.2% -62.0%
New Initiatives 28 34 -18.3% -18.3% -18.3%
Elimination of
intersegment
transactions (22) (30)
Total Vivendi 7,576 7,353 +3.0% +2.2% -2.0%
Income from
operations
Universal Music
Group 597 501 +19.1% +17.6% +17.7%
Canal+ Group 334 235 +41.9% +42.7% +18.4%
Havas Group 61 121 -50.0% -51.1% -52.2%
Editis (16) 6 na na na
Gameloft (12) (9) -40.9% -42.5% -42.5%
Vivendi Village (26) (9) x 2.9 x 2.9 x 2.1
New Initiatives (34) (31) -8.5% -8.5% -8.5%
Corporate (58) (58) -0.5% -0.2% -0.2%
Total Vivendi 846 756 +11.8% +10.6% +5.3%
EBITA
Universal Music
Group 567 481 +18.0% +16.5% +16.6%
Canal+ Group 300 233 +28.7% +29.4% +7.0%
Havas Group 46 108 -57.1% -58.3% -59.3%
Editis (21) 4 na na na
Gameloft (14) (11) -30.9% -34.6% -34.6%
Vivendi Village (27) (9) x 3.0 x 3.0 x 2.3
New Initiatives (42) (29) -45.2% -45.2% -45.2%
Corporate (74) (59) -24.8% -24.4% -24.4%
Total Vivendi 735 718 +2.4% +1.3% -3.8%
1. Constant perimeter notably reflects the impacts of the acquisition of M7
by Canal+ Group (September 12, 2019), the acquisition of the remaining
interest in Ingrooves Music Group, which was consolidated by Universal
Music Group (March 15, 2019) and the acquisition of Editis (January 31,
2019).
APPIX II (Cont'd)
VIVI
QUARTERLY REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)
2020
Three months Three months
(in millions of ended March ended June
euros) 31, 30,
Revenues
Universal Music
Group 1,769 1,690
Canal+ Group 1,372 1,302
Havas Group 524 495
Editis 116 146
Gameloft 61 69
Vivendi Village 23 3
New Initiatives 15 13
Elimination of
intersegment
transactions (10) (12)
Total Vivendi 3,870 3,706
2019
Three months Three months
Three months Three months ended ended
(in millions of ended March ended June September December
euros) 31, 30, 30, 31,
Revenues
Universal Music
Group 1,502 1,756 1,800 2,101
Canal+ Group 1,252 1,266 1,285 1,465
Havas Group 525 589 567 698
Editis (a) 89 171 210 217
Gameloft 68 65 61 65
Vivendi Village 23 43 42 33
New Initiatives 15 19 16 20
Elimination of
intersegment
transactions (15) (15) (11) (24)
Total Vivendi 3,459 3,894 3,970 4,575
-- As a reminder, Vivendi has fully consolidated Editis since February 1,
2019.
APPIX III
VIVI
CONDENSED STATEMENT OF FINANCIAL POSITION
(IFRS, unaudited)
June 30, 2020 December 31,
(in millions of euros) (unaudited) 2019
ASSETS
Goodwill 14,603 14,690
Non-current content assets 2,970 2,746
Other intangible assets 851 883
Property, plant and equipment 1,117 1,097
Rights-of-use relating to leases 1,190 1,245
Investments in equity affiliates 3,508 3,520
Non-current financial assets 3,162 2,263
Deferred tax assets 824 782
Non-current assets 28,225 27,226
Inventories 297 277
Current tax receivables 98 374
Current content assets 966 1,423
Trade accounts receivable and other 4,909 5,661
Current financial assets 328 255
Cash and cash equivalents 2,374 2,130
Current assets 8,972 10,120
TOTAL ASSETS 37,197 37,346
EQUITY AND LIABILITIES
Share capital 6,520 6,515
Additional paid-in capital 2,363 2,353
Treasury shares (1,007) (694)
Retained earnings and other 8,845 7,179
Vivendi SE shareowners' equity 16,721 15,353
Non-controlling interests 701 222
Total equity 17,422 15,575
Non-current provisions 1,028 1,127
Long-term borrowings and other financial
liabilities 4,184 5,160
Deferred tax liabilities 1,158 1,037
Long-term lease liabilities 1,194 1,223
Other non-current liabilities 169 183
Non-current liabilities 7,733 8,730
Current provisions 575 494
Short-term borrowings and other financial
liabilities 1,706 1,777
Trade accounts payable and other 9,354 10,494
Short-term lease liabilities 210 236
Current tax payables 197 40
Current liabilities 12,042 13,041
Total liabilities 19,775 21,771
TOTAL EQUITY AND LIABILITIES 37,197 37,346
(1) Constant perimeter notably reflects the impacts of the
acquisition of M7 by Canal+ Group (September 12, 2019), the
acquisition of the remaining interest in Ingrooves Music Group,
which was consolidated by Universal Music Group (effective as of
March 15, 2019) and the acquisition of Editis (January 31,
2019).
(2) Non-GAAP measures. As of June 30, 2020, in the context of
the COVID-19 pandemic, Vivendi has not changed the definition of
these indicators, which are therefore comparable to those for the
fiscal year 2019.
(3) A reconciliation 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) As a reminder, in Vivendi's Consolidated Financial
Statements, in accordance with IFRS 10, the capital gain on the
sale of 10% of UMG's share capital, equal to the difference between
the sale price of EUR2,838 million and the value of non-controlling
interests in the Consolidated Financial Statements of EUR458
million, will be directly recorded as an increase in equity
attributable to Vivendi SE shareowners for EUR2,380 million. In
accordance with applicable accounting standards, the capital gain
on the sale of 10% of UMG's share capital was recorded in earnings
in Vivendi's Statutory Financial Statements.
(5) Net revenues correspond to revenues less pass-through costs
rebilled to customers.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200730005889/en/
CONTACT: Media
Paris
Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73
Investor Relations
Paris
Xavier Le Roy
+33 (0) 1 71 71 18 77
Nathalie Pellet
+33 (0)1 71 71 11 24
Delphine Maillet
+33 (0)1 71 71 17 20
SOURCE: Vivendi
Copyright Business Wire 2020
(END) Dow Jones Newswires
July 30, 2020 13:58 ET (17:58 GMT)
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