Page 193 - 2012 Annual Report

193
VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 4 BUSINESS SEGMENT PERFORMANCE ANALYSIS
REVENUES AND EBITA
GVT’s revenues reached €1,716 million, an 18.7% increase compared
to 2011 (+28.2% at constant currency); excluding the impact of tax
changes (VAT), revenues increased by 35% at constant currency. In 2012,
GVT expanded its coverage to 20 additional cities and currently covers
139 cities. As a result of commercial efforts and geographical network
expansion, GVT Telecom lines-in-service reached 8.669 million, a 37.0%
increase year-on-year. After only one year in operation, its pay-TV service
generated revenues of €83 million.
GVT was named the best Broadband service in Brazil for the
4th consecutive year, offering the most modern and differentiated network
in Brazil. At the end of 2012, 44% of its customers opted for speeds equal
to or higher than 15 Mbps, compared to 37% one year ago.
Launched commercially in January 2012, the number of subscribers to
its new pay-TV service totaled about 406,000 as of December 31, 2012,
representing an 18.8% penetration rate among the broadband customer
base. During 2012, GVT’s share of the net adds of the entire Brazilian pay-
TV market reached 11.4%, and when considering only the cities where it
operates, GVT’s share of net adds reached 27.7%.
GVT’s EBITDA was €740 million, a 23.1% increase compared to 2011
(+33.4% at constant currency) and EBITDA margin reached the record level
of 43.1%, or 45.9% for the telecom activities only.
GVT’s EBITA was €488 million, a 23.2% increase compared to 2011
(+33.7% at constant currency and +57.5% excluding the impact of the VAT
change and at constant currency).
GVT’s capital expenditures amounted to €947 million, a 34.3% increase
compared to 2011, of which approximately €248 million related to the
pay-TV business. GVT reached break-even on an EBITDA-Capex basis for
its telecom activities.
CASH FLOW FROM OPERATIONS (CFFO)
GVT’s cash flow from operations amounted to -€326 million, compared to
-€147 million in 2011. This change reflected the increase in GVT’s capital
expenditures, net to €947 million in 2012, compared to €705 million in
2011, which was primarily related to investments in networks in order to
increase coverage in regions I and III, as well as investments relating to
the pay-TV operations. However, cash flow from operations before capital
expenditures (CFFO before capex, net) increased by 11.3% in 2012, to
€621 million, reflecting the growth in EBITDA after changes in net working
capital.