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Group Profile |
Businesses
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Raw Materials Used for the Group’s Operations
2.5. Seasonality of Group Businesses
The business operations of Vivendi subsidiaries are quite seasonal
in nature. As a result, greater sales volumes are generated in the last
quarter, especially during the holiday season at the end of the year.
Despite this, the effects of seasonality are offset by the launch of
products throughout the year (including films, albums and attractive new
services).
In music, approximately one-third of annual sales are generated in the
final quarter of the year.
In pay-TV, the sales of Canal+ Group are made through subscription
contracts. Given the term of the contracts, Canal+ Group enjoys regular,
monthly revenues and good visibility on its receipts. Nevertheless, sales
are higher in the fall after the summer vacation period and during the
holidays at the end of the year. In Africa, international or local sports
events such as the African Cup of Nations can also influence sales
volume and seasonal fluctuations, particularly for subscriptions without
commitment.
2.6. RawMaterials Used for the Group’s Operations
The main raw materials used by Vivendi subsidiaries are:
p
p
paper for product packaging at Canal+ Group and Universal Music
Group; and
p
p
polycarbonate for CD or DVD production at Canal+ Group and
Universal Music Group.
Prices for paper and polycarbonate do not fluctuate enough to have a
significant impact on the operations of Canal+ Group. UMG for its
part has signed various contracts with its suppliers to protect it from
fluctuations in prices for these raw materials.
The business operations of Vivendi’s subsidiaries are not generally
dependent on any raw material suppliers.
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Annual Report 2014