34
Annual Report -
2013
-
Vivendi
Group Profile |
Businesses
| Litigation | Risk Factors
1
Earnings from Discontinued Operations
2.6.
Earnings from Discontinued Operations
2.6.1.
Activision Blizzard
Activision Blizzard, the world’s largest independent video game
publisher, was formed in 2008 through the merger of two leading
players in the field of interactive entertainment (Activision, Inc. and
Blizzard Entertainment, Inc.). On July 26, 2013, Vivendi announced
the sale of over 85% of its stake in Activision Blizzard for a total of
$8.2 billion. The sale was completed on October 11, 2013. Following
this operation, Vivendi still holds 83 million shares of Activision Blizzard,
representing approximately 12% of its share capital.
2.6.2.
Maroc Telecom
Maroc Telecom Group is the incumbent telecommunications operator
in the Kingdom of Morocco. It holds equity interests in the operators in
Mauritania (Mauritel), Burkina Faso (Onatel), Gabon (Gabon Télécom)
and Mali (Sotelma). It operates in fixed-line telephony, mobile telephony
and Internet. On November 4, 2013, Vivendi signed a final agreement
with Etisalat, with which exclusive negotiations had been launched on
July 22, 2013 for the sale of its 53% Interest in the Maroc Telecom
Group. This transaction is expected to close shortly. For further
information on this transaction, please see Note 7.2 of the Financial
Report in Chapter 4.
2.8.
Raw Materials Used in the Group Businesses
2.7.
Seasonality of Group Businesses
The business activities of Vivendi subsidiaries are generally seasonal
in nature. As a result, a greater volume of sales is generated in the last
quarter, especially during the holiday season at the end of the year.
This is the case with Canal+ Group, Universal Music Group and SFR
(in a number of countries). For Canal+ Group, there is also a seasonal
factor in the broadcasting of international or local sporting events.
The Africa Cup of Nations, for example, can influence the number of
sales, especially for no-commitment subscriptions.
A particular feature of GVT in Brazil is that, while subscription contracts
in the form of monthly plans represent 76% of its revenues, the
remaining 24% corresponds to actual consumption, which is billed
per minute of use, and on-demand services, which increase during the
holiday seasons and in summer.
To manage seasonal fluctuations, products are launched throughout the
year (films, albums, new packages and attractive services). In addition,
the subscription-based business model generates more regular income,
spread out over each month of the year, allowing Vivendi’s subsidiaries
to maintain good visibility in relation to their revenue projections.
The main raw materials used by Vivendi subsidiaries are:
paper for packaging of products at Canal+ Group, Universal Music
Group and SFR;
polycarbonate for CD or DVD production at Canal+ Group and
Universal Music Group;
copper for cable-laying at GVT and SFR;
polymers derived from petroleum for the installation of fiber optics
at GVT and SFR; and
steel for the construction of pylons at SFR.
Paper, polycarbonate and plastics do not experience price variations that
may have a significant impact on the activities of companies that use
them.
Copper, polymers derived from petroleum and steel used by our
subsidiaries do not represent a large enough cost to have a significant
impact on their activities.
The business activities of Vivendi’s subsidiaries are not generally
dependent on any raw material suppliers.
