Vivendi: Organic growth in revenues and EBITA during the first quarter 2014. A Group repositioned in media and content activities
Paris, May 15, 2014
Note: This press release contains non audited consolidated earnings established under IFRS, which were approved by Vivendi’s Management Board on May 12, 2014, and examined by the Audit Committee on May 14, 2014.
Vivendi: Organic growth in revenues and EBITA
during the first quarter 2014
A Group repositioned in media and content activities
Revenues: €2,722 million, up 2.0% at constant perimeter and currency (-3.7% at actual perimeter and currency) compared to first quarter 2013.
EBITA[1,2]: €268 million, up 2.8% at constant perimeter and currency (-11.2% at actual perimeter and currency) compared to first quarter 2013. The positive EBITA change at constant perimeter and currency, reflects the good performance of Universal Music Group and GVT. The decline of Canal+ Group is attributable to a temporary unfavorable calendar effect on football matches broadcasts.
Adjusted Net Income: €161 million, up 20.1% compared to first quarter 2013.
Financial Net Debt: €11.2 billion, compared to €13.2 billion as of March 31, 2013. It amounts to €7.1 billion when taking into account the completion of the sale of the 53% interest in Maroc Telecom on May 14th.The Group strengthened its BBB/Baa2 rating, with an outlook raised to stable following the selection of the Altice-Numericable offer for a combination with SFR.
As previously announced, Vivendi’s Supervisory Board decided to refocus the Group on its media and content activities, while maximizing the value of its telecom assets. After the sale of its interest in Maroc Telecom, the Board selected the Altice/Numericable offer for a combination with SFR. Vivendi also sold most of its stake in Activision Blizzard. At the same time, it reinforced its positions in media and content in particular with the acquisition of the 20% interest it did not yet own in Canal+ France.
These different transactions contribute to the Group’s debt reduction and allow for a return to shareholders of nearly €5 billion in 2014 and 2015.
The new Group has strong growth drivers in developing countries and holds significant positions in the digital markets undergoing major transformations. Having completely restored its financial flexibility, it has everything it needs to ensure its growth.
 On April 5, 2014, Vivendi’s Supervisory Board decided to accept the Altice/Numericable offer for the sale of SFR. Consequently, as from the first quarter of 2014, in compliance with IFRS 5, SFR has been reported in Vivendi’s Consolidated Financial Statements as a discontinued operation.
As a reminder, on October 11, 2013, Vivendi deconsolidated Activision Blizzard as a result of the sale of 88% of its interest, therein, and, on May 14, 2014, Vivendi sold its 53% interest in Maroc Telecom group. Consequently, as from the second quarter of 2013 and in compliance with IFRS 5, Maroc Telecom group and Activision Blizzard have been reported in Vivendi’s Consolidated Financial Statements as discontinued operations.
In practice, income and charges from these three 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 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; and
– their share of net income has been excluded from Vivendi’s adjusted net income.
The adjustments of data published in the 2013 Annual Report are presented in Appendix 2 to the Financial Report and in Note 12 to the Condensed Financial Statements for the first quarter ended March 31, 2014.
 For more information about EBITA, see appendix IV.
For the reconciliation of earnings attributable to Vivendi SA shareowners to adjusted net income, see appendix IV.