PARIS (dpa-AFX) - Vivendi (VIV.L, VIVEF.PK) reported that its earnings attributable to Vivendi SA shareowners for the first-quarter amounted to 862 million, euros compared to 33 million euros for the first quarter of 2015, reflecting 576 million euros capital gain before taxes related to the sale of the remaining interest in Activision Blizzard in January 2016 and the reversal of reserve for 240 million euros following settlement of the Liberty Media litigation. Earnings per share attributable to Vivendi SA shareowners amounted to 0.66 euros, compared to 0.02 euros for the same period in 2015.
Adjusted net income was a profit of 99 million euros, down 27.3%. Adjusted net income would have amounted to 140 million euros, up 3.1% excluding the negative non-recurring tax impact of 41 million euros due to the reversal of reserve following settlement of the Liberty Media litigation (settlement agreement entered into in February 2016). Adjusted net income per share was 0.08, euros compared to 0.10 euros for the same period in 2015.
At constant currency and perimeter, income from operations was up 9.9% and EBITA up 3.6% due to restructuring charges. Universal Music Group's growth resulted from the significant increase in streaming and subscriptions, tempered by the significant decrease in download revenues. The good performance of Canal+ Group's international pay-TV operations was offset by increased losses suffered by Canal+ channels in France.
These channels are negatively impacted by a difficult economic environment, increased competition from national and international players, and the skyrocketing prices for certain broadcasting rights.
Revenues remained stable at 2.491 billion euros, while it was down 1.4% at constant currency and perimeter compared to the first quarter of 2015.
In France, Vivendi will acquire a minority interest of 15% in Groupe Fnac in the context of a cooperation project dedicated to cultural activities.
Vivendi has confirmed its intention to be a long-term shareholder of Telecom Italia in which it currently holds 24.7% of the ordinary shares. As an industrial investor, it intends to support the development of this transalpine operator by providing its expertise and accelerating its content distribution activities. The Group also holds 0.95% of Telefonica, which will allow it to expand its content distribution network, particularly in Latin America.
Copyright RTT News/dpa-AFX