Page 205 - 2012 Annual Report

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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 6 OUTLOOK
ACTIVISION BLIZZARD
✱ In 2012, Activision Blizzard exceeded its guidance with an EBITA of
€1,149 million, driven by the strength of its main franchises (Call of
Duty, Skylanders, World of Warcraft and Diablo III).
✱ In the short term, Activision Blizzard expects to deliver strong
profitability, but below its record setting 2012 performance, due to
a challenged global economy, the ongoing console transition and a
smaller number of game releases compared to 2012. However, for
2013, the EBITA guidance is still above $1 billion.
✱ In addition, according to February 7, 2013’s announcement on outlook,
Activision Blizzard is considering or may consider during 2013,
substantial stock repurchases, dividends, acquisitions, licensing or
other non-ordinary course transactions, and significant related debt
financings. Activision Blizzard’s full year 2013 outlook does not take
into account any such transactions or financings that may or may not
occur during the year, with the exception of the $0.19 per share cash
dividend announced on February 7, 2013.
UNIVERSAL MUSIC GROUP (UMG)
✱ In 2012, in line with its guidance, UMG achieved a double digit EBITA
margin, at constant perimeter (before the impact of the acquisition
of EMI Recorded Music, announced on November 11, 2011 and
completed on September 28, 2012): 12.4%, compared to 12.1%
in 2011, notably thanks to the increase in digital sales and to cost
reductions.
✱ For 2013, UMG expects an increase in EBITA, with a positive
contribution from EMI Recorded Music, including restructuring
charges. The combination of UMG and EMI Recorded Music is
expected to generate annual synergies above £100 million per annum
by the end of 2014, despite having to sell one third of EMI Recorded
Music’s revenues.
✱ The sale of Parlophone Label Group, part of EMI Recorded Music, for
£487 million (approximately €600 million after taking into account
the EUR/GBP foreign currency hedge in place), to be paid in cash,
was announced on February 7, 2013. Additional, less significative
divestments (of which notably Sanctuary, Mute, Co-Op) were also sold
bringing the total amount of sales to exceed £530 million, all of which
are pending regulatory approvals.
SFR
✱ In 2012, the decrease in EBITDA, excluding negative and positive
non-recurring items (-€15 million in 2012 and +€93 million in 2011),
decreased by 10.6% thanks to its adaptation plan and the strong
control of its commercial costs. Cash flow from operations, excluding
the impact of the acquisition of 4G spectrum for €1,065 million
amounted to €1,758 million. Capital expenditures, net amounted to
€2,736 million in 2012 (€1,671 million excluding the acquisition of
4G spectrum). In addition, in 2012, SFR launched an adaptation plan
while continuing to invest in 4G and fiber infrastructures and adapt
its organization to changing market conditions. In November 2012,
it announced a voluntary redundancy plan with a target of 856 net
departures.
✱ For 2013, SFR expects EBITDA of close to €2.9 billion and capital
expenditures, net of around €1.6 billion and confirms its objective
to reduce operational costs by approximately €500 million
by year-end 2014.
MAROC TELECOM GROUP
✱ In 2012, Maroc Telecom Group’s EBITA margin, excluding restructuring
charges, was better-than-expected, at 39.6% thanks to outstanding
results of its International activities. Cash flow from operations
amounted to €1,066 million in 2012 (compared to €1,035 million in
2011).
✱ For 2013, Maroc Telecom Group expects to maintain the EBITDA
margin at a substantial level of approximately 56% and a slight
growth in EBITDA - capex (excluding potential acquisition of spectrum
and licenses).
GVT
✱ In 2012, GVT’s revenues increased by 28.2%, at constant currency and
it achieved an EBITDA margin of 43.1%, including the impact of the
pay-TV business. Capital expenditures, net amounted to €947 million
(compared to €705 million in 2011). For the telecom activities only,
GVT reached break-even on an EBITDA - capex basis.
✱ For 2013, GVT expects revenues growth in the low 20’s at constant
currency, an EBITDA margin slightly above 40%, and an EBITDA -
capex close to breakeven.
CANAL+ GROUP
✱ In 2012, in line with its guidance, Canal+ Group’s EBITA increased
by 1.9% at constant perimeter (before the impact of the acquisition
of the D8 and D17 channels, completed on September 27, 2012
and of the merger between Cyfra+ and “n” in Poland, completed on
November 30, 2012).
✱ For 2013, Canal+ Group expects an EBITA of around €670 million
(excluding restructuring charges related to pay-TV in Poland), up
€50 million compared with 2012 proforma EBITA of €620 million,
including a €95 million loss related to D8, D17 and “n”, assuming
ownership as of January 1, 2012.