Vivendi Targets Slight Earnings Growth For 2011
March 01 2011 - 2:04AM
Dow Jones News
French media-to-telecoms conglomerate Vivendi SA (VIV.FR)
Tuesday said it expects adjusted earnings to grow slightly this
year after posting a rise in 2010 profits and revenue, in line with
its objectives, driven mainly by growth at its video games unit and
Brazilian telecoms group GVT.
"Despite dfficult economic conditions, and regulatory and tax
measures weighing heavily on our investment, 2011 should see slight
growth in our earnings at constant perimeter and the maintaining of
a high cash dividend," Vivendi Chief Executive Jean-Bernard Levy
said in a statement.
In the three months ended Dec. 31, the group posted net profit
of EUR559 million, compared to a loss of EUR958 million last year.
Adjusted profit, which strips out most non-recurring gains and
charges, rose 2.3% to EUR484 million, beating analysts' forecasts
of EUR475.5 million, according to a Dow Jones Newswires poll.
Adjusted earnings before interest and taxes, or EBIT, a closely
watched figure that excludes certain charges relating to
acquisitions and mergers, fell 7.8% to EUR1.06 billion in the
quarter while revenue rose 5.3% to EUR8.01 billion, above analysts'
views.
Vivendi said it will pay a dividend of EUR1.4 a share for
2010.
The Paris based group owns Universal Music Group, the world's
biggest music publisher by sales whose artists include Lady Gaga
and the Black Eyed Peas, French pay-TV firm Canal Plus and
Brazilian fixed-line operator GVT. It also owns majority stakes in
SFR, France's second-largest mobile operator behind France
Telecom's (FTE) Orange and in which Vodafone Group PLC (VOD) has a
44% stake; Maroc Telecom (IAM.CL) and video games giant Activision
Blizzard Inc. (ATVI).
Vivendi shares Monday closed at EUR20.66.
-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54;
ruth.bender@dowjones.com