182
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
Other income
amounted to €88 million, compared to €19 million in
2012. In 2013, it notably included the gain related to Universal Music
Group’s 2.8% interest dilution in Vevo (€18 million).
Other charges
amounted to €57 million, compared to €236 million
in 2012. In 2012, they mainly included the €119 million impairment
loss on Canal+ Group’s interest in N-Vision in Poland and €63 million
in acquisition costs (EMI Recorded Music, and the strategic partnership
in Poland).
EBIT
was a €435 million loss, compared to a €805 million gain in 2012,
an unfavorable change of €1,240 million, mainly reflecting the decrease
in 2013 EBITA (-€730 million), as well as the impairment of SFR’s
goodwill (€2,431 million) as of December 31, 2013, partially offset by the
reserve accrual in relation to the Liberty Media Corporation litigation in
the United States (€945 million) and the impairment of Canal+ France’s
goodwill (€665 million) as of December 31, 2012.
Income from equity affiliates
was a €33 million charge, compared to
a €38 million charge in 2012.
Interest
was an expense of €528 million, compared to €544 million
in 2012, a €16 million decrease (-2.9%).
In 2013, interest expense on borrowings amounted to €553 million,
compared to €572 million in 2012. This change was mainly attributable
to the decrease in the average interest rate on borrowings to 3.38%
(compared to 3.46% in 2012) and to the stability in the average
outstanding borrowings of €16.3 billion in 2013 (compared to
€16.5 billion in 2012). Indeed, the impact on the average outstanding
borrowings of the sales of Activision Blizzard on October 11, 2013
(€6 billion) and of Parlophone Label Group on July 1, 2013 (€0.7 billion),
was offset by the impact of the acquisitions of EMI Recorded Music on
September 28, 2012 (€1.4 billion) and of Lagardère’s interest in Canal+
France on November 5, 2013 (€1 billion).
Interest income earned on cash and cash equivalents amounted to
€25 million, compared to €28 million in 2012, a €3 million decrease.
Income from investments
amounted to €67 million, compared to
€7 million in 2012. It included interest and dividends received from
unconsolidated companies, notably including a €54 million dividend
received by UMG from Beats in 2013.
Other financial charges and income
amounted to a net charge
of €510 million, compared to a net charge of €167 million in 2012.
They mainly included premiums and costs related to the early bond
redemptions made during the fourth quarter of 2013 following the sale
of the majority of Vivendi’s interest in Activision Blizzard (-€207 million)
as well as the -€186 million foreign exchange loss (compared to a
€76 million foreign exchange loss in 2012) on GVT’s intercompany euro
loan from Vivendi, due to the decline in value of the Brazilian Real.
Please refer to Note 5 to the Consolidated Financial Statements for the
year ended December 31, 2013.
Income taxes reported to adjusted net income
was a net charge
of €282 million, compared to a net charge of €766 million in 2012,
a €484 million decrease. This change mainly reflected 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), which reflected the change, during
the period, in the assessment of risks related to previous years’ income
taxes, and the increase in current tax savings related to Vivendi SA’s
Tax Group System (+€50 million), primarily related to Canal+ Group.
The effective tax rate reported to adjusted net income was 14.3%,
compared to 29.2% in 2012. Excluding the favorable impact of certain
non-recurring items, the effective tax rate on adjusted net income was
20.8% in 2013 (compared to 28.3% in 2012).
In addition,
provision for income taxes
was a net charge of
€417 million, compared to a net charge of €604 million in 2012, a
€187 million decrease. In addition to the factors explaining the decrease
in income taxes reported to adjusted net income, this change reflected
the additional contribution of 3% on Vivendi SA’s dividend for fiscal
year 2012 (€40 million) as well as the change in deferred tax savings
related to Vivendi SA’s Tax Group System, which was a €161 million
charge in 2013 (compared to a €48 million charge in 2012).
Earnings from discontinued operations
(before non-controlling
interests) amounted to €4,635 million, compared to €1,505 million
in 2012. In 2013, it included the capital gain on the divestiture of
Activision Blizzard on October 11, 2013 (€2,915 million) and the change
in value, since that date, of the 83 million Activision Blizzard shares
still owned by Vivendi as of December 31, 2013 (gain of €245 million).
Moreover, earnings from discontinued operations included Activision
Blizzard’s earnings until the effective date of divestiture (€692 million,
compared to €873 million in 2012), as well as Maroc Telecom Group’s
earnings (€783 million in 2013, compared to €632 million in 2012).
In 2013, these earnings also took into account the discontinuation
of the amortization of tangible and intangible assets of these two
businesses since July 1, 2013, in accordance with accounting
standards (+€270 million impact in 2013). Please refer to Note 7
to the Consolidated Financial Statements for the year ended
December 31, 2013.
Earnings attributable to non-controlling interests
amounted to
€812 million, compared to €785 million in 2012, a €27 million increase
(+3.4%). It primarily included Maroc Telecom Group’s non-controlling
interests (€435 million in 2013, compared to €335 million in 2012)
and Activision Blizzard’s non-controlling interests (€269 million from
January 1, 2013 to October 11, 2013, compared to €337 million in 2012).
Adjusted net income attributable to non-controlling interests
amounted to €117 million, unchanged compared to December 31, 2012,
and primarily included Lagardère’s non-controlling interest in Canal+
Group until November 5, 2013.
In 2013,
earnings attributable to Vivendi SA shareowners
amounted to €1,967 million (or €1.48 per share), compared to
€179 million (or €0.14 per share) in 2012, a €1,788 million increase. This
change mainly reflected in 2013, the capital gain on the divestiture of
Activision Blizzard (€2,915 million), partially offset by the impairment
of SFR’s goodwill (-€2,431 million), and in 2012, the reserve accrual
in relation to the Liberty Media Corporation litigation in the United
States (-€945 million) and the impairment of Canal+ France’s goodwill
(-€665 million).
