Regulatory News:
Vivendi (Paris:VIV):
For the first quarter of 2021, Vivendi's revenues were EUR3,901
million up 5.0% at constant currency and perimeter (1) compared to
the first quarter of 2020. This increase is mainly due to the 9.4%
growth for Universal Music Group (UMG) and the 40.1% jump for
Editis, partially offset by the slowdown in the other activities,
particularly Vivendi Village, which continues to be affected by the
consequences of the health crisis. On an actual basis, Vivendi's
revenues were up 0.8%.
Although the COVID-19 pandemic is having a more significant
impact on certain countries or businesses than others, in fiscal
year 2020 and in the first quarter of 2021, Vivendi has
demonstrated resilience in adapting its activities to continue to
best serve and entertain its customers, while reducing costs to
preserve its margins. The business activities demonstrated good
resilience, in particular music and pay television. However, as
expected, the other businesses such as Havas Group and Vivendi
Village (in particular live entertainment) were affected by the
pandemic's effects.
Vivendi continually monitors the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact Vivendi's results in 2021. Businesses
related to live performance have a risk of being more impacted 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, as well as to best serve and
entertain its customers and audiences while complying with the
guidelines of authorities in each country where it operates.
Following the approval by 99.98% of Vivendi's shareholders at
the Extraordinary General Meeting of March 29, 2021, of an
amendment to the company's by-laws, which now allows Vivendi to
distribute dividends or interim dividends, reserves or premiums by
way of the delivery of assets in kind, including financial
securities, Vivendi will ask its shareholders at the Annual
Shareholders' Meeting to be held on June 22, 2021, to adopt a
position on the plan to make an exceptional distribution in kind in
the form of UMG shares to its shareholders, with completion
expected in fall 2021.
Comments on the Businesses
Universal Music Group
For the first quarter of 2021, UMG's revenues amounted to
EUR1,809 million, up 9.4% at constant currency and perimeter
compared to the first quarter of 2020 (+2.2% on an actual
basis).
Recorded music revenues grew by 10.8% at constant currency and
perimeter thanks to the growth in subscription and streaming
revenues (+19.6%) and despite the receipt of a digital royalty
claim in the first quarter of 2020. Physical sales were up 14.8%
compared to the first quarter of 2020, driven by better new release
and catalog sales.
Recorded music best sellers for the first quarter of 2021
included new releases from King & Prince and Justin Bieber, as
well as continued sales from The Weeknd, Ariana Grande and Pop
Smoke.
On the Spotify global chart, UMG had the No. 1 track 12 of 13
weeks in the first quarter of 2021 with Olivia Rodrigo's "Driver's
license" and Justin Bieber's "Peaches". UMG also had all of the Top
3 songs on Spotify's global chart for six consecutive weeks.
UMG set a new record on April 1, 2021 by having the top-selling
album in the United States on the Billboard 200 for 17 consecutive
weeks, breaking the previous chart record of 16-straight weeks set
by UMG in 2014.
Music publishing revenues grew by 6.9% at constant currency and
perimeter compared to the first quarter of 2020, driven by
increased subscription and streaming revenues.
Merchandising and other revenues were down 10.0% at constant
currency and perimeter compared to the first quarter of 2020, as
touring activity continued to be impacted by the pandemic and
despite improved retail and direct-to-consumer sales.
In February 2021, UMG announced the launch of Virgin Music Label
& Artist Services, which offers premium and flexible artist and
label services to the industry's most dynamic entrepreneurs and
independent artists worldwide. This new model for global
distribution and label services, combining UMG's unrivalled
regional executive teams with dedicated resources and
industry-leading services and technology, will help foster
long-term partnerships and deliver global success for the next
generation of independent labels and artists.
Canal+ Group
For the first quarter of 2021, Canal+ Group's revenues amounted
to EUR1,357 million, almost stable compared to the first quarter of
2020 (-0.1% at constant currency and perimeter).
Revenues from television operations in mainland France slightly
decreased, amid, in particular, a downturn in the advertising
market due to the pandemic.
Canal+ subscriber satisfaction in France is at its highest level
since 2017 (subscriber satisfaction barometer conducted between
November and December 2020).
Revenues from international operations grew by 1.6% at constant
currency and perimeter.
Studiocanal recorded a significant revenue increase (+8.9% at
constant currency and perimeter), driven by good performances in
catalog and TV series revenues.
In the first quarter of 2021, Canal+ announced several strategic
agreements. On February 3, 2021, Starzplay, the premium streaming
service from Starz, joined Canal+ offerings. By integrating
Starzplay, Canal+ Group took yet another step in its ambition to
aggregate the best content and apps on the market.
On February 4, 2021, the Professional Football League and Canal+
Group announced a global agreement for the audiovisual rights for
Ligue 1 Uber Eats and Ligue 2 BKT for the 2020-2021 season. Since
the 25th day of Ligue 1 Uber Eats and Ligue 2 BKT, and until the
end of the 2020-2021 season, Canal+ Group had the exclusive
audiovisual rights, live and in full, to all Ligue 1 Uber Eats
matches and eight of the ten Ligue 2 BKT matches. In addition to
the audiovisual rights to these matches, Canal+ Group holds all
weekday and weekend magazine rights.
On March 2, 2021, Canal+, which has been a partner of the TOP 14
for more than 35 years, won the latest call for tenders launched by
the National Rugby League for broadcasting rights in France until
the end of the 2026-2027 season. These exclusive broadcasting
rights cover all TOP 14 matches, live as well as near-live clips,
and all programs devoted to them, in all media formats.
Havas Group
As global economies continue to recover, Havas Group posted
better than expected first quarter 2021 results. Organic growth in
net revenues(2) continued to improve quarter after quarter, coming
in at -0.8% for the first quarter of 2021, compared to -10.4% for
the third quarter of 2020 and -7.5% for the fourth quarter of
2020.
For the first quarter of 2021, net revenues were EUR478 million,
down 5.7%. Exchange rates had a negative impact of -5.9% (+1.8% for
the first quarter of 2020) and acquisitions contributed +1.0%.
Improved performance was reported in all geographic regions.
Despite an unfavorable base effect, the North American agencies
reported satisfactory growth thanks to a buoyant market. The Health
division leveraged its market leadership position to generate
sustained growth. Benefiting from a favorable comparative base in
March, Europe showed signs of recovery in both the Creative and
Media businesses, with organic growth moving into positive
territory. Latin America continued its recovery, and Asia Pacific
saw the first encouraging signs emerge from the new organization,
introduced at the end of 2020.
For the first quarter of 2021, Havas Group's revenues were
EUR502 million, up 0.8% at constant currency and perimeter, and
down 4.2% on an actual basis compared to the first quarter of
2020.
Havas Group's business activity remained dynamic, driven by its
innovative new offerings, Havas CX (Customer Experience) and Havas
Market, launched in the second half of 2020. Following on from
Cross Border Solutions in the United States and Uber Eats in
France, Havas Group continues to win new accounts with high-end
clients such as Volkswagen for Customer Experience in the United
Kingdom and Keurig Dr Pepper for Media in the United States.
Editis
For the first quarter of 2021, Editis's revenues were EUR163
million, an increase of 40.1% at constant currency and perimeter
compared to the same period in 2020. This strong achievement stems
from a boom in the market environment since January 2021. However,
it is not solely the result of a favorable basis of comparison with
the first quarter of 2020 and the beginning of the lockdown in
France, since Editis's revenues increased by 20.1% at constant
currency and perimeter compared to the first quarter of 2019
adjusted(3) .
At Editis, General Literature and Diffusion & Distribution
sales recorded outstanding performances, with several titles
topping the bestseller charts. Editis has nine titles in the GFK
Top 20 for large-format literature, four more than in 2020. Camille
Kouchner's story, La familia grande, published by Seuil, was number
2 in the Top GFK at the end of March 2021. Rien ne t'efface, the
new novel by Michel Bussi, published by Presses de la Cité,
recorded exceptional sales, increasing 52% compared to the previous
title based on equivalent sales weeks. Also particularly noteworthy
was the release of volume 2 of Marc Levy's successful "9" series,
Le crépuscule des fauves, published by Robert Laffont.
Editis also takes pride in the prestigious literary awards it
received during the quarter: l'Accident de chasse (Sonatine) was
awarded the "Fauve d'Or", the prize for the best album at the
Angoulême International Comics Festival; the "Grand Prix RTL-Lire
2021" has distinguished Des diables et des saints of Jean-Baptiste
Andréa (Iconoclaste); The Astrid Lindgren Memorial Award -- the
most important prize for children's literature in the world -- was
received by Jean-Claude Mourlevat, who writes for Fleuve, PKJ,
12-21 and Lizzie; the "Grand Prix de la Francophonie" was given by
the "Académie française" to Alexandre Najjar, published by
Plon.
Other businesses
For the first quarter of 2021, Gameloft revenues reached EUR55
million, down 9.3% compared to the first quarter of 2020 due to the
lack of new game launches. Sales on OTT (Over The Top) platforms
represented 75% of Gameloft's total revenues, driven by the success
of Asphalt 9: Legends on mobile phones, PCs and Nintendo Switch, as
well as the resilience of the catalog. On April 15, 2021, Gameloft
announced that its Asphalt game franchise had reached one billion
downloads on all platforms.
For the first quarter of 2021 Vivendi Village's revenues
benefited from a strong recovery in ticketing activities in the
United Kingdom and the United States in February and March but
remained heavily impacted by the pandemic and the near-complete
shutdown of live performance activities.
For the first quarter of 2021, New Initiatives, which brings
together Dailymotion and the GVA entities, recorded revenues of
EUR17 million, up 19.9% at constant currency and perimeter compared
to the first quarter of 2020.
Dailymotion's premium audience grew by 9% compared to the first
quarter of 2020. This growth was driven by several video content
delivery partnerships, including the Vendée Globe (50 million
viewers with 2 million hours of content), the 46th César Awards
ceremony and the Perseverance (NASA mission) landing on Mars.
Dailymotion's programmatic monetization platform continues to grow
as Google DV360 opens its buying platform to all Dailymotion
inventory.
GVA's revenues increased by 56.3% compared to the first quarter
of 2020. In a health context that has increased the need for
internet access, this growth reflects the sustained development of
the very high-speed internet access business, with more than
500,000 homes and businesses from now eligible for GVA's fibre
optics on the African continent.
Recent events
Universal Music Group BV secures financing
On March 26, 2021, Universal Music Group BV (UMG BV) reached an
agreement regarding a five-year, EUR3 billion financing line with
four leading banks. The syndication of this financing among a pool
of banks is expected to be completed by the end of April 2021.
UMG's headquarters in Hilversum, Netherlands, previously located in
Paris, now regroup the subsidiaries in the various countries in
which UMG operates.
Early redemption by Vivendi of a bond issue
Vivendi, which has significant deposits with banks at negative
interest rates, has decided to early redeem in full its outstanding
EUR1 billion bonds issued in May 2016, bearing an annual coupon of
0.75% and maturing on May 26, 2021. This early redemption will take
place as of April 26, 2021. On March 29, 2021, the holders of the
bonds received a formal notice of the early redemption in
accordance with the terms and conditions of the bonds.
Slides related to the 2021 first quarter revenues are available
on the Group's website https://www.vivendi.com/ in the section
titled Shareholders &Investors.
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 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. 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, in fiscal
year 2020 and in the first quarter of 2021, Vivendi has
demonstrated resilience in adapting its activities to continue to
best serve and entertain its customers, while reducing costs to
preserve its margins. The business activities demonstrated good
resilience, in particular music and pay television. However, as
expected, the other businesses such as Havas Group and Vivendi
Village (in particular live entertainment) were affected by the
pandemic's effects.
Vivendi continually monitors the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact Vivendi's results in 2021. Businesses
related to live performance have a risk of being more impacted 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, as well as to best serve and
entertain its customers and audiences while complying with the
guidelines of authorities in each country where it operates.
This press release does not constitute an offer to purchase or
the solicitation of an offer to sell securities in the United
States or any other jurisdiction. The distribution of this press
release in certain jurisdictions may be restricted by law. No
document regarding this redemption should be transmitted, directly
or indirectly, in the United States or in any other country in
which such a redemption would be illegal or submitted to
restrictions or to anyone residing in these countries. Persons into
whose possession this announcement comes are required to inform
themselves about, and to observe, any such restrictions. No
communication or information relating to the redemption of the
Bonds may be distributed to the public in a country where a
registration obligation or an approval is required. No action has
been or will be taken in any country where such action would be
required. The redemption of the Bonds may be subject to specific
legal and regulatory restrictions in certain jurisdictions; Vivendi
accepts no liability in connection with a breach by any person of
such restrictions.
This press release is an advertisement; and none of this press
release, any notice or any other document or material made public
and/or delivered, or which may be made public and/or delivered to
the holders of the Bonds in connection with the redemption is or is
intended to be a prospectus for the purposes of Regulation (EU)
2017/1129 of the European Parliament and of the Council dated 14
June 2017 (as amended, the "Prospectus Regulation"). No prospectus
will be published in connection with the redemption of the Bonds
for the purposes of the Prospectus Regulation.
This press release does not, and shall not, in any
circumstances, constitute an offer to the public of securities by
Vivendi nor an invitation to the public in connection with any
offer in any jurisdiction, including France.
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.
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group. In content creation,
Vivendi owns powerful, complementary assets in music (Universal
Music Group), movies and series (Canal+ Group), publishing (Editis)
and 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
APPIX
VIVI
REVENUES BY BUSINESS SEGMENT
Three months ended
March 31
% Change
at
constant
% Change curenncy
at and
(in millions of constant perimeter
euros) 2021 2020 % Change currency (1)
Revenues
Universal Music
Group 1,809 1,769 +2.2% +9.4% +9.4%
Canal+ Group 1,357 1,372 -1.1% - -0.1%
Havas Group 502 524 -4.2% +1.8% +0.8%
Editis 163 116 +40.1% +40.1% +40.1%
Gameloft 55 61 -9.3% -6.4% -10.2%
Vivendi Village 8 23 -66.8% -66.1% -66.1%
New Initiatives 17 15 +19.9% +19.9% +19.9%
Elimination of
intersegment
transactions -10 -10
Total Vivendi 3,901 3,87 +0.8% +5.2% +5.0%
(1) Changes in exchange rates and perimeter of consolidation
mainly relate to currency effects and "slight variations" in the
perimeter of consolidation of entities that are not material at the
Vivendi group level.
(1) Changes in exchange rates and perimeter of consolidation
mainly relate to currency effects and "slight variations" in the
perimeter of consolidation of entities that are not material at the
Vivendi group level.
(2) Net revenues correspond to Havas Group revenues after
deduction of costs rebilled to clients.
(3) Editis has been consolidated since 1 February 2019. In the
first quarter of 2019, adjusted revenue amounted to EUR135
million.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210422005884/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 2021
(END) Dow Jones Newswires
April 22, 2021 12:40 ET (16:40 GMT)
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