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