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Section 4 - Business segment performance analysis
Financial Report
| Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Section 4
Business segment performance analysis
Preliminary comments
p
p
Vivendi Management evaluates the performance of Vivendi’s business segments and allocates the necessary resources to them based on
certain operating performance indicators, notably the non-GAAP measures EBITA (Adjusted Earnings Before Interest and Income Taxes), and
income from operations.
The difference between EBITA and EBIT consists of the amortization of intangible assets acquired through business combinations, the
impairment of goodwill and other intangibles acquired through business combinations, and EBIT’s “other charges” and “other income” as
defined in Note 1.2.3 to the Consolidated Financial Statements for the year ended December 31, 2014.
As defined by Vivendi, income from operations is calculated as EBITA as presented in the Adjusted Statement of Earnings, before share-based
compensation costs related to equity-settled plans, and special items due to their unusual nature or particular significance (please refer to
Appendix 1 to this Financial Report).
Moreover, it should be noted that other companies may define and calculate EBITA, and income from operations differently from Vivendi,
thereby affecting comparability.
p
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In compliance with IFRS 5, GVT (as from the third quarter of 2014), SFR (as from the first quarter of 2014) as well as Maroc Telecom group
and Activision Blizzard (as from the second quarter of 2013) have been reported as discontinued operations. In practice, income and charges
from these four businesses have been reported as follows:
–– their contribution until the effective divestiture, if any, to each line of Vivendi’s Consolidated Statement of Earnings (before non-controlling
interests) has been reported on the line “Earnings from discontinued operations”;
–– in accordance with IFRS 5, these adjustments have been applied to all periods presented to ensure consistency of information; and
–– their share of net income has been excluded from Vivendi’s adjusted net income.
Vivendi deconsolidated SFR, Maroc Telecom group and Activision Blizzard as from November 27, 2014, May 14, 2014, and October 11, 2013,
respectively.
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