Morning:
12°c
Vivendi falls short as earnings rise 3%
Nick Goodway, Evening Standard01.09.08
Vivendi, Europe's biggest entertainment company and owner of Universal Music, reported
second-quarter profits slightly below expectations but reassured the market that it was still on track to meet full-year forecasts.
In July Universal signed a long-term deal with The Rolling Stones, another major blow to the group's former record company, EMI.
Vivendi's earnings before interest, tax and amortisation nudged ahead 3% to €1.36 billion (£1.1 billion) in the latest three months. Revenues were 15% higher at €6 billion.
The firm, which owns France's No 2 mobile phone network SFR and French TV channel Canal Plus, ruled out a rights issue to pay for its recent deals with telecoms business Neuf Cegetel and games group Activision.
Vivendi merged its games division which produces the online role-playing series of games, World of Warcraft, with Activision, the owner of the top-selling Guitar Hero franchise. Vivendi owns a 54% stake in the new Activision Blizzard.
In music, the group said digital sales increased by 33% and that sales were also boosted by last year's takeovers of BMG Music Publishing and the UK's Sanctuary. Bestsellers on the major record label included the debut album from Duffy.
