PARIS (dpa-AFX) - French media and telecom group Vivendi Soci (VIVHY.PK, VIVEF.PK), Tuesday reported a near 24 percent drop in first-quarter profit, hurt mostly by lower revenues and margins.
While growth was seen at its video games publishing unit, Activision Blizzard, and Universal Music Group, the company's telecom businesses floundered, especially at French wireless carrier SFR, which had to grapple with intense competition.
Vivendi reported first quarter net earnings to common stock of 534 million euros or 0.40 euro per share, down from 699 million euros or 0.54 euro per share last year.
Excluding items, adjusted earnings for the quarter were 672 million euros or 0.51 euro per share, compared with 825 million euros or 0.64 euro per share a year ago.
Revenues for the quarter declined 1 percent to 7.05 billion from 7.12 billion euros a year ago. On a constant currency basis, revenues were up 0.3 percent from a year ago.
Among segments, revenues from Activision Blizzard Inc. (ATVI) rose 12 percent, aided by key franchises and successful debut of its 'Starcraft II: Heart of the Swarm' PC game.
Universal Music Group revenue increased 13.5 percent, on robust results from EMI labels, partly offset by lower revenues in Japan as well as the disposal of the company's VE/Fontana activities last year.
Canal+ Group revenue grew 4.4 percent, helped by the integration of the new free-to-air channels in France and the 'n' platform in Poland.
At its biggest unit, SFR, revenue slid 11.4 percent, due to the impact of price cuts related to the competitive environment and as well on price cuts imposed by the regulators.
Maroc Telecom, the African telecom operator, posted a 4.7 percent drop in revenue, while the Brazilian telecom unit, GVT, edged up 1.4.
In March, news reports indicated Vivendi to be mulling a spinoff of SFR in order to focus on media business. The company is also said to be continuing with efforts to sell Maroc Telecom.
Moving forward, Vivendi said macroeconomic conditions continue to be challenging, even as it reiterated guidance for all of its businesses.
VIVEF is trading at $20.64, down 4.43%, and VIVHY at $20.85, up 2.96%.
In Paris, the stock closed at 15.98 euros, up 1.46%, on a volume of over 5 million shares.
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