Vivendi profit down 24%, hit by telecom competition
French media and telecommunications group Vivendi said Tuesday its first quarter net profit slid by nearly 24 percent from the same period last year to 534 million euros ($691 million), with its telecoms unit hit by greater competition.
Sales dipped 1 percent to 7.05 billion euros, with strong revenue growth by media units such as Universal Music Group failing to offset sagging telecoms results.
Operating profit as measured by earnings before interest, taxes and amortisation fell 17.2 percent to 1.34 billion euros, mostly due to a decrease of 233 million euros in operating earnings by French mobile operator SFR.
SFR also saw its sales fall by 11.4 percent to 2.6 billion euros as competition in the French mobile market intensified, while Maroc Telecom registered a 4.7-percent drop.
Meanwhile sales by Universal Music Group rose by 13.5 percent, video game maker Activision Blizzard by 12.2 percent and television group Canal+ by 4.4 percent to account for 48 percent of total sales.
"Confronted with a very challenging economic environment, Vivendi's subsidiaries are implementing the necessary adaptation measures," the company said in a statement.
"Consequently, first quarter 2013 results are in line with our outlook and enable us to confirm our annual guidance across all the Group's businesses," it added.
© 2013 AFP