French media-to-telecoms conglomerate Vivendi SA (VIV.FR) said Tuesday adjusted profit should grow slightly in 2011 as strong growth at its Brazilian telecoms unit GVT offset increased competitive pressure on French telecoms operator SFR.

"Despite difficult 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.

The company said 2011 guidance was for adjusted profit excluding NBCU, which it sold earlier this year for $5.8 billion.

CEO Levy reiterated Vivendi's long-standing interest in buying out Vodafone Group PLC's (VOD) 44% stake in French telecoms operator SFR but didn't comment on whether talks are taking place between the two parties. "I maintain our general objective, which is to one day own 100% of our French assets but I can't talk either about the existence or the content of any talks," he said.

The CEO also refused to rule out the possibility that Vivendi could reach a deal with media group Lagardere SCA (MMB.FR) regarding its stake in Canal Plus France, a unit of Canal Plus Groupe. Lagardere still owns a 20% stake in the unit and started an initial public offering process last month. "Nothing should be excluded...The project is in the hands of Lagardere but they can stop it anytime if they want to," he said.

Paris-based Vivendi said it has cut provisions it had made for potential damages in a U.S. class action to EUR100 million from EUR550 million in 2009. The group last week said potential liabilities in the class action would be cut by more than 80% after a U.S. judge ruled that shareholders who bought Vivendi shares outside the U.S. were barred from bringing fraud claims against the company in the U.S.

Overall, Vivendi posted a rise in full-year profits and revenue, in line with its objectives, driven mainly by growth in Brazil and at its video games unit.

In the three months ended Dec. 31, net profit totaled EUR559 million, compared to a loss of EUR958 million last year, as revenue rose 5.3% to EUR8.01 billion, above analysts' views.

Still, adjusted earnings before interest and taxes, a closely watched figure that excludes charges relating to acquisitions and mergers, fell 7.8% to EUR1.06 billion in the quarter, hit by a drop in profits at Activision Blizzard Inc. (ATVI), Universal Music Group and SFR.

SFR, France's second-largest mobile phone operator behind France Telecom SA (FTE), is facing tough competition in the French market as operators are preparing for the arrival of a fourth mobile operator. Levy admitted that competition has "intensified," echoing comments from France Telecom SA (FTE.FR) last week, but noted that the company's commercial results remain strong.

Universal Music Group, the world's biggest music publisher by sales whose artists include Lady Gaga and the Black Eyed Peas, continues to suffer from a structural decline as the music industry is shifting to digital. Under new CEO Lucian Grainge, the company has launched a reorganization process which should save EUR100 million by the end of 2011, Vivendi said.

At 0819 GMT, shares in Vivendi traded down 1% to EUR20.47, underperforming a higher French CAC-40 index.

Vivendi said it will pay a dividend of EUR1.4 a share for 2010, flat from last year.

-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54; ruth.bender@dowjones.com