181
Annual Report -
2013
-
Vivendi
Financial Report
| Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
4
SECTION 2 - Earnings analysis
2.2.
Earnings review
Adjusted net income analysis
Adjusted net income
was €1,540 million (or €1.16 per share
(1)
),
compared to €1,705 million (or €1.31 per share) in 2012. This
€165 million decrease (-9.7%) resulted primarily from:
a €730 million decrease in EBITA to a total of €2,433 million
(compared to €3,163 million in 2012). This change mainly reflected
the decline in the performances of SFR (-€527 million), GVT
(-€83 million, primarily due to the decline in value of the Brazilian
Real), Canal+ Group (-€52 million, including the increase in transition
costs related to D8/D17 and “n” for -€39 million), and Universal
Music Group (-€15 million, including the increase in restructuring
charges for -€35 million and integration costs related to EMI
Recorded Music for -€8 million). Moreover, this change included the
costs related to the launch of Watchever in Germany (-€66 million);
a €5 million increase attributable to the change in income from
equity affiliates;
a €16 million decrease in interest;
a €60 million increase in income from investments; and
a €484 million decrease in income tax expense, mainly reflecting
the impact of the decline in the group’s business segments’ taxable
income (+€199 million), primarily due to SFR, the favorable impact
of certain non-recurring items (+€149 million), and the increase in
the current tax savings related to Vivendi SA’s Tax Group System
(+€50 million), primarily due to Canal+ Group.
(1)
For the details of adjusted net income per share, please refer to Appendix 1 to this Financial Report.
Breakdown of the main items from the Statement of Earnings
Revenues
were €22,135 million, compared to €22,577 million in 2012
(-2.0%, or +0.2% at constant currency). For a breakdown of revenues
by business segment, please refer to Section 4 of this Financial Report.
Costs of revenues
amounted to €12,988 million, compared to
€12,672 million in 2012, a €316 million increase (+2.5%).
Margin from operations
decreased by €758 million, to €9,147 million,
compared to €9,905 million in 2012 (-7.7%).
Selling, general and administrative expenses
, excluding
the amortization of intangible assets acquired through business
combinations, amounted to €6,443 million, compared to €6,469 million
in 2012, a €26 million decrease (-0.4%).
Depreciation and amortization of tangible and intangible
assets
are included either in the cost of revenues or in selling,
general and administrative expenses. Depreciation and amortization,
excluding amortization of intangible assets acquired through business
combinations, amounted to €2,207 million (compared to €2,079 million
in 2012), an additional €128 million charge (+6.2%). This change mainly
resulted from the increase in the depreciation of telecommunication
network assets of SFR and GVT.
Restructuring charges and other operating charges and income
amounted to a net charge of €271 million, compared to a net charge of
€273 million in 2012. In 2013, restructuring charges were €208 million
(compared to €273 million in 2012) and included €114 million incurred by
UMG (compared to €79 million in 2012) and €93 million incurred by SFR
(compared to €187 million in 2012). In 2013, transition costs incurred by
Canal+ Group and UMG amounted to €50 million (of which €43 million
related to “n” and €7 million related to D8/D17, compared to €11 million
in 2012) and €27 million (compared to €19 million in 2012), respectively.
Moreover, in 2012, other operating charges included the €66 million
fine ordered against SFR by the French Competition Authority in
December 2012.
EBITA
was €2,433 million, compared to €3,163 million in 2012, a
€730 million decrease (-23.1%, or -20.6% at constant currency). For a
breakdown of EBITA by business segment, please refer to Section 4 of
this Financial Report.
Amortization of intangible assets acquired through business
combinations
was €462 million, compared to €436 million in 2012,
a €26 million increase (+6.0%), mainly related to the amortization of
music rights and catalogs acquired by Universal Music Group from EMI
Recorded Music on September 28, 2012.
Impairment losses on intangible assets acquired through
business combinations
amounted to €2,437 million, compared to
€760 million in 2012. In 2013, they reflected the impairment of SFR’s
goodwill (€2,431 million). In 2012, they related to the impairment of
Canal+ France’s goodwill (€665 million) and certain goodwill and music
catalogs of Universal Music Group (€94 million).
As of December 31, 2012, based on the verdict rendered on
June 25, 2012 in relation to
the Liberty Media Corporation
litigation in the United States
, which was confirmed by the court
in New York on January 9, 2013 and entered into the record by the
judge on January 17, 2013, Vivendi accrued a reserve for the full amount
of the judgment (€945 million), representing €765 million in damages
and €180 million in pre-judgment interest covering the period from
December 16, 2001 to January 17, 2013, at the rate of one-year US
Treasury notes. As of December 31, 2013, this €945 million reserve as
well as the €100 million reserve recognized at year-end 2010 in relation
to the Securities Class Action in the United States were unchanged.
Please refer to Note 28 to the Consolidated Financial Statements for the
year ended December 31, 2013.
