193
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 4 - Business segment performance analysis
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Revenues and EBITA
GVT’s revenues increased by 13.1% at constant currency (-0.4% at
actual currency) compared to 2012, reaching €1,709 million. This
performance was achieved in a highly competitive environment and
a strong slowdown in the Brazilian economy. At year-end 2013, GVT
services covered 150 cities, compared to 139 cities one year earlier.
GVT’s pay-TV service performed well and generated revenues of
€174 million, around 10% of GVT’s revenues. The number of subscribers
reached about 643,000 at the end of 2013 (+58.4% year-on-year),
representing a 24.6% penetration rate among GVT’s broadband
customer base. In addition to hybrid technology (satellite and IPTV), GVT
launched an offer providing pay-TV service via satellite only.
The quality of the GVT offers continued to receive several accolades.
The Company was ranked by Info Exame magazine as the operator
delivering the best broadband service in Brazil for the fifth consecutive
year. It also offers the highest average broadband speed to its customers
(13.4 Mbps, compared to the Brazilian average of 2.7 Mbps), according
the Akamai Institute.
GVT’s EBITDA reached €707 million, an 8.7% increase at constant
currency (-4.5% at actual currency) compared to 2012. EBITDA margin
reached 41.4%, which is the highest margin in the Brazilian telecom
operators market.
GVT’s EBITA was €405 million, a 5.7% decrease at constant currency
(-17.0% at actual currency) compared to 2012. This change was due
to increased depreciation expenses attributed to the development of
pay-TV and continued high capital expenditure to support its growth.
In 2013, EBITDA-Capex was close to breakeven for the full year, and
became positive in the second half of the year thanks to a strong
performance in the telecom activities.
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Cash flow from operations (CFFO)
GVT’s cash flow from operations amounted to -€91 million (compared
to -€326 million in 2012), a €235 million increase. This change reflected
the growth in EBITDA after changes in net working capital (+€52 million)
as well as a decrease in capital expenditures (€769 million, compared
to €947 million in 2012). Cash flow from operations before capital
expenditures (CFFO before capex, net) increased by 9.2% in 2013, to
€678 million.
