French media and telecoms conglomerate Vivendi reported higher first-half revenues and earnings on Thursday, boosted by profits from advertising giant Havas but also pay-TV group Canal+ Group.
Revenue for the first six months of 2022 reached €4.87 billion (US$4.94 billion), up 10.9% or 5.4% on an organic basis, with a focus on constant currency and current assets, compared with the same period of the previous year. Earnings before interest, taxes, depreciation and amortization (EBITA) increased 31.5% to 412 million euros (US$418 million), “especially thanks to the contribution of Grupo Canal+, the growth of Grupo Havas and the integration of ( French magazine publisher) Prisma Media”.
Vivendi also reported second-quarter revenue that rose 8.6% to €2.5bn, “mainly due to the good momentum of the Havas Group”. Focusing on currency and constant assets, quarterly revenue grew 3.1%, led by Havas, while Canal+ saw a 1.3% decline on that basis.
“As reflected in the 31.5% increase in EBITA, our businesses continued to perform strongly in the first half of the year,” said Vivendi CEO Arnaud de Puyfontaine. “Our business model and high-profile brands lend strength and consistency to our revenue and operating performance, as evidenced by our financial performance” during the first half of the year.
“These indicators prove the effectiveness of the strategy implemented by the group”, said Yannick Bollore, chairman of Vivendi’s Supervisory Board. “This is underpinned by the transformational work carried out by each of our businesses to adapt their business models to changing consumption patterns, the competitive environment and emerging technologies. We also intend to continue our international development. Grupo Havas and Grupo Canal+ already generate 80% and 40% of their revenues, respectively, outside France.
Vivendi said it has a 57.35 percent, but minority, financial stake in French publishing giant Lagardère, following a public offering that ended in June. Vivendi said on Thursday it would consider divesting its publishing house Editis, which it acquired in 2019, “to avoid potential antitrust concerns”. He added: “Vivendi is considering implementing this transaction primarily through the distribution of Editis shares to Vivendi shareholders and at the same time admitting the shares to listing on the Euronext Paris stock exchange.”
During a call with analysts, Vivendi executives discussed Canal+, which was among the bidders seeking a potential stake in Lionsgate’s premium pay-TV and streaming platform Starz. Puyfontaine’s chief executive said the French media giant had successfully acquired minority stakes in other global media companies, including a 20 percent stake in African pay-TV platform Multichoice.
“The approach is very pragmatic. We are open to different opportunities. minority [stake] It’s not something we wouldn’t consider, given the logic and all the elements to believe it’s a prudent investment in the context of our strategic plans,” Puyfontaine told analysts in a call in the afternoon.
First-half revenue for Canal+ pay-TV rose 2.2% when adjusted for constant currency and current assets, or 3.3% otherwise, to 2.87 billion euros ($2.91 billion). International revenue was the main driver of growth “thanks to another significant increase in subscriber numbers,” the company said. StudioCanal’s revenue dropped 23.5% on an organic basis, “despite very good results from its catalog and movie releases”, with the decline due “to its television series after an exceptional first half of 2021 (war of words, a private matter, two lives)”
Canal+’s EBITA of €337 million (US$342 million) for the six-month period increased 0.4% at constant exchange rates and current assets, or 2.1% on an adjusted basis.
Meanwhile, advertising hub Havas increased its first-half revenue by 19.9% to €1.56 billion ($1.58 billion), while EBITA increased by 27.8% to €112 million. ($114 million), thanks to “Continuing Adjustment Plan benefits despite a significant increase in personnel costs in the first half of the year,” the company said.
Vivendi also reported flat second-quarter revenue for game developer Gameloft at €120 million ($122 million), despite a “mobile video game market that contracted 7% in the first half”. He highlighted “the success of Apple Arcade games and the strong performance of Gameloft for Brands (advertising platforms) and Gameloft Business Solutions (telecom operators and platforms for phone manufacturers), whose revenues grew 27.8% and 7%, 0 .5%, respectively”. .
Source: Hollywood Reporter
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