Paris, August 29, 2013

Note: This press release contains unaudited consolidated earnings established under IFRS, which were approved by Vivendi’s Management Board on August 28, 2013.

 

Vivendi: First Half Year 2013 Results

 

As from the second quarter of 2013 in compliance with IFRS 5 (1) , Activision Blizzard and Maroc Telecom group are classified as discontinued operations (2) , meaning that their results are excluded from the adjusted statement of earnings. This adjustment also applies to the 2012 earnings for comparison purposes.

  • Revenues (1): €10.842 billion for the four companies in the perimeter, down 1.5% compared to first half 2012 (-0.2% at constant currency).
  • EBITA (1,3) : €1.391 billion, down 27.0% as expected (-25.7% at constant currency). This change is mainly due to the decrease in SFR’s EBITA in a market which remains very competitive.
  • Adjusted Net Income (1,4) : €845 million, down 25.0%, mainly reflecting the EBITA decrease.
  • Full year outlook confirmed for Universal Music Group, and slightly adjusted for Canal+ Group, SFR and GVT.
  • Financial net debt : €6.5 billion taking into account the expected (5) proceeds from disposals in progress, compared with €13.4 billion as of December 31, 2012.

 

“Vivendi’s subsidiaries are confronted with a challenging economic environment and highly competitive markets. In this context, the Group’s media businesses have resisted, benefiting from the first positive impacts of the acquisitions and growth drivers they put in place. The Group’s priorities remain the closing of the announced deals, cash flow generation, the pursuit of SFR’s adaptation to new market conditions and the achievement of synergies’ generated by the acquisitions.

Vivendi has indeed taken key steps forward in the strategic review process being carried out by its Supervisory Board. The Group will divest most of its interest in Activision Blizzard and has entered into exclusive negotiations to sell Maroc Telecom group. The proceeds of these transactions will provide Vivendi with greater financial flexibility. SFR and Bouygues Telecom are working on a project to share a portion of their mobile network. In addition, Universal Music Group completed the sale of the EMI Recorded Music assets required by the regulator and the integration of the prestigious label. Canal+ Group successfully relaunched the D8/D17 channels.

Vivendi is realizing at its own pace its announced restructuring aimed at achieving new growth milestones. Our priority remains the creation of shareholder value.”

Jean-François Dubos, Chairman of the Management Board and Chief Executive Officer

 

(1) Plans to sell Activision Blizzard and Maroc Telecom group. As from the second quarter of 2013 in compliance with IFRS 5, Activision Blizzard and Maroc Telecom group have been reported in Vivendi’s Consolidated Statement of Earnings as discontinued operations. In practice, income and charges from these two businesses have been reported as follows:

– Their contribution to each line of Vivendi’s Consolidated Statement of Earnings (before non-controlling interests) has been grouped under 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.

– Their share of net income has been excluded from Vivendi’s adjusted net income.

(2) The planned sales of the majority of Vivendi’s interest in Activision Blizzard and its entire interest in Maroc Telecom group are expected to close by the end of September and the end of December, respectively.

(3) For more information about EBITA, see appendix IV.

(4) For the reconciliation of earnings attributable to Vivendi SA shareowners to adjusted net income, see appendix IV.

(5) According to the terms known to date and excluding the expected proceeds from the sale of the remaining 83 million Activision Blizzard shares owned.

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