Strong financial structure enabling the
Group’s development
Regulatory News:
Vivendi (Paris:VIV):
Note: This press release contains non audited
consolidated earnings established under IFRS, which were approved
by Vivendi’s Management Board on August 26, 2015, and reviewed by
the Audit Committee on August 27, 2015, and by the Supervisory
Board on September 2, 2015.
First half 2015 key
figures1
Change
year-on-
year
Change at constant
currency and
perimeter2 year-on-
year
€5,095M
+8.3%
+2.4%
- EBIT3
- Earnings attributable to Vivendi shareowners3
€1,027M
€1,991M
x3.7
+4.1%
€500M -1.4%
-3.1%
€516M +13.4%
+11.2%
€329M
+30.0%
+€6.3bn vs. +€4.6bn as of December 31,
2014
_______________________
1 In compliance with IFRS 5, SFR and Maroc Telecom group (sold
in 2014), as well as GVT (sold on May 28, 2015), have been reported
as discontinued operations. In practice, income and charges from
these businesses have been reported as follows:- their
contribution, until the effective divestiture, to each line of
Vivendi’s Consolidated Statement of Earnings (before
non-controlling interests) has been reported on the line “Earnings
from discontinued operations”; - any capital gain recognized as a
result of a completed divestiture is recorded under the line
“Earnings from discontinued operations”; and- their share of net
income and the capital gain recognized as a result of a completed
divestiture have been excluded from Vivendi’s adjusted net income.2
Constant perimeter allows for the restatement of the impacts of the
acquisition of Thema by Canal+ Group on October 28, 2014.3 A
reconciliation of EBIT to EBITA and to income from operations, as
well as a reconciliation of earnings attributable to Vivendi SA
shareowners to adjusted net income, are presented in Appendix
V.
Vivendi's Supervisory Board met today under the chairmanship of
Vincent Bolloré and reviewed the Group’s condensed financial
statements for the first half of 2015, which were approved by the
Management Board on August 26, 2015.
These financial results reflect the strength of the business
models of the Group’s operations, which are focused on media and
content creation, in the face of a volatile market and reinforce
confidence in Vivendi’s previously announced full-year outlook
assuming no important changes in the global economic
environment.
Canal+ Group’s operations continued to be supported by the good
performances of its entities outside of France, its free-to-air
channels in France and Studiocanal. Universal Music Group (UMG)
benefited from the growth of all its businesses.
The strong performance of UMG, mainly in recorded music, and the
transformation plan implemented at Watchever (Vivendi Village)
supported Vivendi’s income from operations, which, nonetheless,
decreased by 1.4% (-3.1% at constant currency and perimeter) due to
increased investment by Canal+ Group in sports content and
rights.
This decrease was largely offset by the reduction in
restructuring charges as well as integration and transition costs,
resulting in a 13.4% increase in EBITA (+11.2% at constant currency
and perimeter), which reached €516 million.
Adjusted net income, representing the economic performance of
Vivendi’s businesses, amounted to €329 million, an increase by
30.0% compared to the first half of 2014 thanks to the increase in
EBITA, the decrease in interest expense as well as the increase in
income from investments, partially offset by the increase in income
tax expense.
Earnings attributable to Vivendi SA shareowners were a €1,991
million profit, compared to €1,913 million for the first half of
2014. Earnings from discontinued operations amounted to
€1,279 million, compared to €2,064 million for the first
half of 2014, and mainly included the capital gain on the sale of
GVT on May 28, 2015, for €1,818 million (before taxes of
€612 million).
Changes in shareholdings
On June 24, 2015, Vivendi became Telecom Italia’s largest
shareholder, holding 14.9% of its ordinary shares.4
At the end of July 2015, Vivendi divested its entire interest in
Telefonica Brasil, in which it held a 7.5% interest following the
sale of GVT and the swap agreement entered into with Telecom
Italia. The Group swapped a 3.5% interest in Telefonica Brasil in
exchange for a 0.95% interest in Telefonica, and sold its remaining
Telefonica Brasil shares for approximately €800 million.5
Vivendi’s exit from the telecoms sector in Brazil and its entry
into Telecom Italia’s share capital delivered significant benefits
to Vivendi’s shareholders. At the time of signing the definitive
sale agreement in 2014, GVT was valued at over 10x EV/EBTITDA6 and
the investment in Telecom Italia was based on a value estimated at
6.8x EV/EBITDA in 20157.
__________________
4 The put and call options related to 5.6% of the ordinary
shares have been settled.5 Subject to approval by the Brazilian
competition authority (Cade).6 Based on a consensus of analyst
estimates for 2014e EBITDA of €0.7bn7 Source : Thomson One
On June 30, 2015, the Group acquired an 80% interest in
Dailymotion, one of the world’s largest aggregation and
distribution platforms, from Orange. On July 30, 2015, Vivendi
increased its interest by an additional 10%, and now holds 90% of
Dailymotion’s share capital.
On August 19, 2015, the Group completed its withdrawal from
Numericable-SFR after receiving a total of €1.974 billion,
representing the balance of the sale price payable for its interest
in this company.
Furthermore, following its public tender offer for shares of
Société d’Edition de Canal Plus (SECP) which lasted from July 9 to
August 12, 2015, Vivendi now controls 93.6% of the share capital
and voting rights of SECP. In accordance with regulations, the
tender offer was reopened on August 31, 2015 and will run until
September 11, 2015, to offer shareholders who have not yet tendered
their shares an opportunity to do so.
Vivendi’s balance sheet was further enhanced significantly as a
result of these various transactions, enabling the Group to develop
and to consider acquisitions. The restated net cash position,
taking into account the transactions that took place since June 30,
2015, is close to €9 billion, representing almost 30% of Vivendi’s
market capitalization. As of June 30, 2015, Vivendi had a net cash
position of €6.3 billion.
Taking into account the payment of dividends in 2015, and the
ones to be paid in 2016 (including a second interim dividend of €1
per share planned for February 3, 2016) and in 2017, Vivendi will
have distributed to its shareholders a total of €6.8 billion,
including €2.7 billion in the course of 2015. Depending on global
stock market developments, the Group may also consider implementing
the share repurchase program authorized by Vivendi’s General
Shareholders’ Meeting of April 17, 2015.
Vivendi has entered into exclusive negotiations to become a
minority partner in the international group that will be created as
a result of the merger between Banijay and Zodiak. This new group
will be the world's third largest producer of entertainment
programming.
Changes in the composition of the
Supervisory Board
Vivendi notes the departure of Daniel Camus from the Supervisory
Board after a five-year period during which he contributed to the
complete transformation of the company into an industrial group
focused on content creation and media. Vivendi thanks him for his
contribution and his great professionalism, notably within the
Audit Committee, during a restructuring that led to a full
deleveraging of the Group.
Today, Vivendi co-opted Cathia Lawson-Hall as a member of its
Supervisory Board, further increasing its female
representation.
Cathia Lawson-Hall is a Senior Banker at Société Générale
Corporate & Investment Banking (SG CIB), in charge of the
global relationship and the strategic dialogue with large African
corporates and Financial institutions of the bank. Her experience,
including a previous position as a telecoms and media financial
analyst, will be extremely valuable within the Supervisory
Board.
This appointment will be submitted to the next General
Shareholders’ Meeting for ratification.
An industrial group focused on media and
content creation
Vivendi today is an industrial group entirely focused on media
and content creation.
Canal+ Group pursues its strategy of investment in exclusive
high-quality powerful content. With a renewed program line-up and a
focus on its premium offer, Canal+ intends to increase the
production of encrypted entertainment shows and original creations,
in particular television series, to be shown on all screens and
intended for worldwide distribution, thanks in particular to
digital platforms. Canal+ Group is also developing its
international presence on markets with strong growth potential,
particularly in Africa, and plans to enter into distribution
agreements with telecoms operators in a number of countries.
Universal Music Group (UMG)’s objectives include, among others,
to accelerate the monetization of music on digital channels, to
broaden the reach of its audio and video content through more
partnerships, and to pursue its leading-track record of artist
development. UMG will also continue to invest in high-potential
markets for music, such as Africa, India and China.
Vivendi Village intends to strengthen its investment in
companies at the heart of the digital economy transformation. It
will increase its presence in live events and will actively promote
the emergence of young talent.
With Dailymotion, Vivendi owns a leading digital platform to
display the entire Group’s content worldwide.
Comments on Key Financial Consolidated
Indicators
A/ Analysis of the consolidated income statement
changes
In compliance with IFRS 5, SFR and Maroc Telecom group (sold in
2014), as well as GVT (sold on May 28, 2015), have been reported as
discontinued operations. In practice, income and charges from these
businesses have been reported as follows:
- their contribution, until the effective
divestiture, to each line of Vivendi’s Consolidated Statement of
Earnings (before non-controlling interests) has been reported on
the line “Earnings from discontinued operations”;
- any capital gain recognized as a result
of a completed divestiture is recorded under the line “Earnings
from discontinued operations”; and
- their share of net income and the
capital gain recognized as a result of a completed divestiture have
been excluded from Vivendi’s adjusted net income
Revenues were €5,095 million, compared to
€4,706 million for the first half of 2014, an increase of
8.3%, or +2.4% at constant currency and perimeter.
EBIT was €1,027 million, compared to €279 million
for the first half of 2014. The growth was primarily attributable
to a capital gain on the divestiture of a 20% interest in
Numericable-SFR for €651 million (before taxes) and the reversal of
a reserve for €60 million related to the impairment of Canal+
Group’s interest in TVN in Poland, sold on
July 1, 2015.
Earnings attributable to Vivendi SA shareowners were
€1,991 million (or €1.47 per share), compared to
€1,913 million (or €1.42 per share) for the first half of
2014.
- Earnings from continuing operations,
after non-controlling interests (Canal+ Group, Universal Music
Group and Vivendi Village, as well as Corporate) were a
€712 million profit, compared to a €69 million profit for
the first half of 2014, an improvement of €643 million.
- Earnings from discontinued
operations, after non-controlling interests, amounted to
€1,279 million, compared to €1,844 million for the first
half of 2014. For the first half of 2015, they primarily included
(i) the capital gain on the sale of GVT on May 28, 2015 for €1,818
million, before taxes of €612 million, (ii) the fair value
downside adjustment of Telefonica Brasil shares held since
May 28, 2015 (-€59 million), and (iii) GVT’s net
earnings up until its sale for €179 million. For the first half of
2014, they primarily included the capital gains on the sale of
interest in Maroc Telecom (€786 million, before taxes) and the sale
of 41.5 million Activision Blizzard shares (€84 million), as
well as GVT, SFR and Maroc Telecom’s net earnings for an aggregate
amount of €821 million.
B/ Analysis of adjusted net income changes
Pursuant to the application of IFRS 5 to SFR and Maroc Telecom,
sold in 2014, as well as GVT, sold on May 28, 2015, the Adjusted
Statement of Earnings presents the results of Canal+ Group,
Universal Music Group and Vivendi Village’s operations, as well as
Corporate costs.
Income from operations was €500 million, compared to
€507 million for the first half of 2014 (-1.4%).
At constant currency, income from operations decreased by 2.6%.
The improved operating performances of Vivendi Village
(+€45 million), thanks to the development of its activities
and the transformation plan implemented at Watchever during the
second half of 2014, and of Universal Music Group (+€20 million),
mainly attributable to strong recorded music sales, were offset by
the change in Canal+ Group’s income from operations (-€57 million).
This change notably reflected increased investment in content and a
positive non-recurring impact related to a litigation settlement
during the first half of 2014.
EBITA was €516 million, compared to
€455 million for the first half of 2014, an increase of 13.4%.
At constant currency, EBITA increased by 11.7%.The slight decrease
in income from operations was more than offset by the decrease in
restructuring charges, integration and transition costs, as well as
the impact of other operating charges and income.
Interest was an expense of €14 million, compared to
€33 million for the first half of 2014, an improvement of
57.3%.
Income taxes reported to adjusted net income were a net
charge of €147 million, compared to €129 million for the
first half of 2014. The effective tax rate reported to adjusted net
income was 28.0% compared to 30.4% for the first half of 2014.
Adjusted net income attributable to non-controlling
interests remained stable at €40 million and included
non-controlling interests of Société d’Edition de Canal Plus
(SECP), Canal+ Overseas and nc+.
Adjusted net income was €329 million (€0.24 per share),
compared to €253 million for the first half of 2014
(€0.19 per share), a 30.0% increase. This increase
resulted from the increase in EBITA (+€61 million), the decrease in
interest expense (+€19 million), as well as the increase in
income from investments (+€18 million), partially offset by the
increase in income tax expense (-€18 million).
Comments on Business Highlights
Canal+ Group
Canal+ Group's revenues amounted to €2,734 million, a 2.5%
increase (+1.4% at constant currency and perimeter) compared to the
first half of 2014.
Canal+ Group had a total of 15.3 million subscriptions, a
year-on-year increase of 176,000, due to the strong performance of
Canal+ in Africa and Vietnam, and of the Canalplay streaming
service in mainland France.
Revenues from pay-TV operations in mainland France fell slightly
year-on-year, in a difficult economic and competitive environment.
International pay-TV revenues were up 9.1% compared to the first
half of 2014, thanks to continued growth in the subscriber
base.
Advertising revenues from free-to-air channels benefited from
the growing audience of D8, the leading digital terrestrial channel
in France, and of the news channel iTélé.
Studiocanal's revenues grew significantly thanks in particular
to the successful theatrical releases of Paddington, Imitation Game
and Shaun the Sheep.
Income from operations was €368 million, compared to €425
million for the first half of 2014. EBITA was €388 million,
compared to €420 million the previous year. This change mainly
resulted from increased investment in sports programs and rights:
Canal+ Group secured exclusive broadcasting rights for all the
National French Rugby Championship (TOP 14) matches and the
exclusive right to distribute the Eurosport channel on
Canalsat.
On July 1, 2015, Canal+ Group and ITI Group completed the sale
of their controlling interest in TVN, Poland’s leading private
media company, to Southbank Media Ltd, a member of the Scripps
Networks Interactive Inc group, for an aggregate cash consideration
of €584 million, of which €273 million for Canal+ Group.
Universal Music Group
Universal Music Group’s (UMG) revenues were €2,311 million, up
3.4% at constant currency and perimeter (+15.4% on an actual basis)
compared to the first half of 2014, driven by growth in all its
divisions.
Recorded music revenues grew 3.6% at constant currency and
perimeter thanks to strong new releases and carryover sales, as
well as the recognition of legal settlement income. Growth in
subscription and streaming revenues (+34%) more than offset the
decline in both digital download (-5%) and physical sales.
Music publishing revenues grew 2.7% at constant currency, also
driven by increasing subscription and streaming revenues.
Merchandising and other revenues were up 3.2% at constant currency
thanks to greater touring activity.
Recorded music best sellers for the first half of 2015 included
strong carryover sales from Taylor Swift and Sam Smith, the Fifty
Shades of Grey soundtrack and new releases from Drake, Maroon 5 and
Mumford & Sons.
UMG’s income from operations was €179 million, up 9.2% at
constant currency and perimeter (+12.5% on an actual basis)
compared to the first half of 2014. Income from operations excludes
restructuring charges, as well as a legal settlement income in the
first half of 2015 and the reversal of exceptional provisions in
the first half of 2014.
UMG’s EBITA was €171 million, up 7.4% at constant currency and
perimeter (+11.9% on an actual basis) compared to the first half of
2014. This good performance reflected the benefit of both revenue
growth and cost control.
Vivendi Village
Vivendi Village’s revenues were €51 million compared to €46
million for the first half of 2014. This takes into account the
transfer of The Olympia music hall from UMG to Vivendi Village as
from January 1, 2015.
Vivendi Village’s income from operations and EBITA both turned
positive during the first half of 2015, amounting to €8 million
each, thanks to the transformation plan implemented by Watchever,
the subscription video-on-demand service.
MyBestPro, previously called Wengo, provides consulting services
and acts as a digital intermediary between individual consumers and
professional service providers. It aims at creating the first
peer-to-peer professional recommendation label in France. In June
2015, its platform Juritravail.com launched a legal information hub
located in La Rochelle, whose mission is to help large enterprise
clients (banks, insurance companies) obtain legal answers online or
by phone.
A few months after adding Universal Music Group content to its
line-up, Watchever began offering its subscribers hundreds of
Studiocanal movies and television series episodes, placing
Vivendi’s content at the heart of its offering.
For additional information, please refer to the “Financial
Report and Unaudited Condensed Financial Statements for the
half-year ended June 30, 2015” which will be released later online
on Vivendi’s website (www.vivendi.com).
Bio elements Cathia Lawson-Hall (picture available upon
request)
Cathia Lawson-Hall is a Senior Banker at Société Générale
Corporate & Investment Banking (SG CIB. Since March 2015, she
is in charge of the global relationship and the strategic dialogue
with large African corporates and financial institutions of the
bank. Prior to that she was Managing Director, Co-Head of Debt
Capital Markets for large corporates in France, Belgium and
Luxembourg. Cathia Lawson-Hall joined SG CIB in 1999 as a
sales-side credit analyst covering the telecommunications and media
sectors before heading into financial advising. She has over 18
years’ experience in the Corporate and Investments Banking
business, mainly in Debt Capital Markets and financial analysis.
Cathia Lawson-Hall graduated from the University of Paris-Dauphine
and holds a postgraduate degree in Finance.
About Vivendi
Vivendi is an integrated media and content group. The company
operates businesses throughout the media value chain, from talent
discovery to the creation, production and distribution of content.
The main subsidiaries of Vivendi comprise Canal+ Group and
Universal Music Group. Canal+ is the leading pay-TV operator in
France, and also serves markets in Africa, Poland and Vietnam.
Canal+ operations include Studiocanal, a leading European player in
production, sales and distribution of film and TV series. Universal
Music Group is the world leader in recorded music, music publishing
and merchandising, with more than 50 labels covering all genres. A
separate division, Vivendi Village, brings together Vivendi
Ticketing (ticketing in the UK, France and the U.S.), MyBestPro
(experts counseling), Watchever (subscription video-on-demand) and
the Paris-based concert venue L’Olympia. With over 2.5 billion
videos viewed each month, Dailymotion is one of the biggest
aggregation and distribution platforms in the world.
www.vivendi.com, www.cultureswithvivendi.com,
www.themediashaker.com
Important Disclaimers
Cautionary Note Regarding Forward Looking Statements. This press
release contains forward-looking statements with respect to the
financial condition, results of operations, business, strategy,
plans and outlook of Vivendi, including the impact of certain
transactions and the payment of dividends and distributions as well
as share repurchases. Although Vivendi believes that such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements
as a result of a number of risks and uncertainties, many of which
are outside our control, including but not limited to the risks
related to antitrust and other regulatory approvals as well as any
other approvals which may be required in connection with certain
transactions and the risks described in the documents Vivendi filed
with the Autorité des Marchés Financiers (French securities
regulator), which are also available in English on Vivendi's
website (www.vivendi.com). Investors and security holders may
obtain a free copy of documents filed by Vivendi with the Autorité
des Marchés Financiers at www.amf-france.org, or directly from
Vivendi. Accordingly, we caution readers against relying on such
forward looking statements. These forward-looking statements are
made as of the date of this press release and Vivendi disclaims any
intention or obligation to provide, update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Unsponsored ADRs. Vivendi does not sponsor an American
Depositary Receipt (ADR) facility in respect of its shares. Any ADR
facility currently in existence is “unsponsored” and has no ties
whatsoever to Vivendi. Vivendi disclaims any liability in respect
of any such facility.
ANALYST CONFERENCE CALL (in English, with French
translation)
Speakers:Arnaud de PuyfontaineChief Executive
Officer and Chairman of the Management BoardHervé
PhilippeMember of the Management Board and Chief Financial
Officer
Date: Wednesday, September 2,
2015 6:00pm
Paris time – 5:00pm London time – 12:00pm New York time
Media invited on a listen-only basis.
Internet: The conference can be followed on the Internet
at: www.vivendi.com (audiocast)
Numbers to dial:United Kingdom: +44 (0) 203 427 1912 -
code 632 25 30United States of America: +1 646 254 3365 – code 632
25 30France: +33 (0) 1 76 77 22 24 – code: 863 72 02
Numbers for replay:United Kingdom: +44 (0) 203 427 05 98
– code 632 25 30United States of America: +1 347 366 9565 – code
632 25 30France: +33 (0) 174 20 28 00 – code: 863 72 02
On our website www.vivendi.com will be available dial-in
numbers for the conference call and for replay (14 days), an audio
webcast and the slides of the presentation.
APPENDIX I VIVENDI CONSOLIDATED STATEMENT OF
EARNINGS (IFRS, unaudited) Three months ended June 30,
% Change Six months ended June 30, % Change
2015 2014 2015 2014
2,603 2,389 + 9.0% Revenues
5,095 4,706 + 8.3% (1,559) (1,394) Cost of
revenues (3,069) (2,842) (724) (666) Selling, general and
administrative expenses excluding amortization of intangible assets
acquired through business combinations (1,481) (1,344) (22)
(59) Restructuring charges (29) (65) (105) (83) Amortization
of intangible assets acquired through business combinations (203)
(166) 717 3 Other income 718 3 - (11) Other charges
(4) (13)
910 179 x
5.1 EBIT 1,027 279 x 3.7 (1)
4 Income from equity affiliates (7) (2) (9) (22) Interest
(14) (33) 12 3 Income from investments 21 3 23 9
Other financial income 35 12 (16) (21) Other financial
charges (34) (36)
919 152
x 6.0 Earnings from continuing operations before
provision for income taxes 1,028 223 x 4.6
(206) (53) Provision for income taxes (282) (120)
713 99 x 7.3 Earnings
from continuing operations 746 103 x 7.3
1,262 1,480 Earnings from discontinued operations 1,279
2,064
1,975 1,579 +
25.2% Earnings 2,025 2,167 - 6.5%
(17) (97) Non-controlling interests (34) (254)
1,958 1,482 + 32.1% Earnings
attributable to Vivendi SA shareowners 1,991
1,913 + 4.1% 696 79 x 8,8
of which
earnings from continuing operations attributable to Vivendi SA
shareowners 712 69 x 10,3 1.44 1.10
Earnings attributable to Vivendi SA shareowners per share - basic
1.47 1.42 1.43 1.10 Earnings attributable to Vivendi SA shareowners
per share - diluted 1.46 1.42
In millions of euros, per share amounts in
euros.
Nota:
In compliance with IFRS 5, SFR and Maroc Telecom (sold in 2014),
as well as GVT (sold on May 28, 2015) have been reported as
discontinued operations.
In practice, income and charges from these businesses have been
reported as follows:
- their contribution until the effective
divestiture, to each line of Vivendi’s Consolidated Statement of
Earnings (before non-controlling interests) has been reported on
the line “Earnings from discontinued operations”;
- any capital gain recognized as a result
of a completed divestiture is recorded under the line “Earnings
from discontinued operations”; and
- their share of net income and the
capital gain recognized as a result of a completed divestiture have
been excluded from Vivendi’s adjusted net income
For any additional information, please refer to the “2015 Half
Year Financial Report”, which will be released online later on
Vivendi’s website (www.vivendi.com).
APPENDIX II VIVENDI ADJUSTED STATEMENT OF
EARNINGS (IFRS, unaudited) Three months ended June 30,
% Change Six months ended June 30, % Change
2015 2014 2015 2014
2,603 2,389 + 9.0% Revenues
5,095 4,706 + 8.3% 282
303 - 7.0% Income from operations 500
507 - 1.4% 298 270 +
10.4% EBITA 516 455 + 13.4%
(1) 4 Income from equity affiliates (7) (2) (9) (22)
Interest (14) (33) 12 3 Income from investments 21 3
300 255 + 17.6% Adjusted earnings from
continuing operations before provision for income taxes 516 423 +
22.0% (86) (89) Provision for income taxes (147) (129)
214 166 + 29.2% Adjusted net income
before non-controlling interests 369 294 + 25.6% (21) (22)
Non-controlling interests (40) (41)
193 144 + 34.4% Adjusted net income
329 253 + 30.0% 0.14 0.11 Adjusted net
income per share - basic 0.24 0.19 0.14 0.11 Adjusted net
income per share - diluted 0.24 0.19
In millions of euros, per share amounts in
euros.
A reconciliation of EBIT to EBITA and to income from operations,
as well as a reconciliation of earnings attributable to Vivendi SA
shareowners to adjusted net income, are presented in Appendix
V.
Nota:
Pursuant to the application of IFRS 5 to SFR and Maroc Telecom,
sold in 2014, as well as GVT, sold on May 28, 2015, the Adjusted
Statement of Earnings presents the results of Canal+ Group,
Universal Music Group and Vivendi Village’s operations, as well as
Corporate costs.
APPENDIX III VIVENDI REVENUES, INCOME FROM
OPERATIONS AND EBITA
BY BUSINESS SEGMENT
(IFRS, unaudited) Three months ended June 30, (in millions
of euros) 2015 2014 % Change
% Change at
constant currency
% Change at
constant currency
and perimeter (a)
Revenues Canal+ Group 1,364 1,350 +1.0% +0.1% -0.3%
Universal Music Group 1,214 1,019 +19.0% +4.3% +4.5% Vivendi
Village 26 25 +3.6% -1.2% -10.4% New Initiatives 1 -
Elimination of intersegment transactions (2) (5)
Total Vivendi
2,603 2,389 +9.0% +2.1% +1.9%
Income from operations Canal+ Group 214 246 -12.8%
-12.4% -12.9% Universal Music Group 91 93 -2.0% -3.3% -2.8% Vivendi
Village 4 (17) na na na New Initiatives (1) -
Corporate (26) (19)
Total Vivendi 282
303 -7.0% -7.1% -7.4%
EBITA Canal+ Group 223 245 -9.0% -8.6% -9.1% Universal Music
Group 89 97 -7.7% -11.5% -11.0% Vivendi Village 4 (67) na na na New
Initiatives (1) -
Corporate (17) (5)
Total Vivendi 298
270 +10.4% +9.4% +9.0%
Six
months ended June 30, (in millions of euros) 2015 2014
% Change
% Change at
constant currency
% Change at
constant
currency and
perimeter (a)
Revenues Canal+ Group 2,734 2,667 +2.5% +1.8% +1.4%
Universal Music Group 2,311 2,003 +15.4% +3.1% +3.4% Vivendi
Village 51 46 +9.9% +5.8% -5.6% New Initiatives 1 - Elimination of
intersegment transactions (2) (10)
Total Vivendi 5,095 4,706 +8.3%
+2.6% +2.4% Income from operations
Canal+ Group 368 425 -13.3% -13.4% -14.0% Universal Music Group 179
159 +12.5% +8.5% +9.2% Vivendi Village 8 (37) na na na New
Initiatives (1) - Corporate (54) (40)
Total Vivendi 500 507 -1.4%
-2.6% -3.1% EBITA Canal+ Group
388 420 -7.6% -7.6% -8.2% Universal Music Group 171 153 +11.9%
+6.7% +7.4% Vivendi Village 8 (87) na na na New Initiatives (1) -
Corporate (50) (31)
Total
Vivendi 516 455 +13.4% +11.7%
+11.2%
na: not applicable.
a. Constant perimeter allows for the restatement of the impacts
of the acquisition of Thema by Canal+ Group on October 28, 2014, as
well as of the managerial transfer of The Olympia music hall from
UMG to Vivendi Village as from January 1, 2015.
A reconciliation of EBIT to EBITA and to income from operations,
as well as a reconciliation of earnings attributable to Vivendi SA
shareowners to adjusted net income, are presented in Appendix
V.
The business segment “New Initiatives” brings
together Vivendi Contents (created in February 2015 and which
acquired100% of three companies during the first half of 2015: Flab
Lab, la Parisienne d’Images, renamed Studio+, and Can’t Stop) and
Dailymotion (as from June 30, 2015).
APPENDIX IV VIVENDI CONSOLIDATED STATEMENT OF
FINANCIAL POSITION (IFRS, unaudited)
(in millions of euros)
June 30, 2015
(unaudited)
December 31, 2014
ASSETS Goodwill 10,023 9,329 Non-current content
assets 2,559 2,550 Other intangible assets 227 229 Property, plant
and equipment 706 717 Investments in equity affiliates 98 306
Non-current financial assets 4,874 6,144 Deferred tax assets 768
710
Non-current assets 19,255 19,985
Inventories 120 114 Current tax receivables 527 234 Current content
assets 793 1,135 Trade accounts receivable and other 1,972 1,983
Current financial assets 2,973 49 Cash and cash equivalents 7,519
6,845
13,904 10,360 Assets held for sale 1,841 -
Assets of discontinued businesses - 5,393
Current assets
15,745 15,753 TOTAL ASSETS
35,000 35,738 EQUITY AND LIABILITIES
Share capital 7,501 7,434 Additional paid-in capital 5,283 5,160
Treasury shares (1) (1) Retained earnings and other 8,758 10,013
Vivendi SA shareowners' equity 21,541 22,606
Non-controlling interests 382 382
Total equity 21,923
22,988 Non-current provisions 2,849 2,888 Long-term
borrowings and other financial liabilities 2,103 2,074 Deferred tax
liabilities 739 657 Other non-current liabilities 118 121
Non-current liabilities 5,809 5,740
Current provisions 245 290 Short-term borrowings and other
financial liabilities 276 273 Trade accounts payable and other
6,195 5,306 Current tax payables 552 47
7,268 5,916
Liabilities associated with assets of discontinued businesses -
1,094
Current liabilities 7,268 7,010
Total liabilities 13,077 12,750
TOTAL EQUITY AND LIABILITIES 35,000 35,738
APPENDIX V VIVENDI RECONCILIATION OF
NON-GAAP MEASURES IN STATEMENT OF EARNINGS (IFRS,
unaudited)
Income from operations, adjusted earnings
before interest and income taxes (EBITA), and adjusted net income,
non-GAAP measures, should be considered in addition to, and not as
a substitute for, other GAAP measures of operating and financial
performance and Vivendi considers that they are relevant indicators
to assess the group’s operating and financial performance. Vivendi
Management uses income from operations, EBITA and adjusted net
income for reporting, management and planning purposes because they
better illustrate the underlying performance of continuing
operations by excluding most non-recurring and non-operating
items.
Three months ended June 30, Six months ended June 30,
(in millions of euros) 2015 2014 2015 2014
EBIT (a) 910 179 1,027 279
Adjustments Amortization of intangible assets acquired through
business combinations 105 83 203 166 Impairment losses on
intangible assets acquired through business combinations (a) - - -
- Other income (a) (717) (3) (718) (3) Other charges (a) - 11 4 13
EBITA 298 270 516 455
Adjustments Restructuring charges (a) 22 59 29 65 Charges related
to equity-settled share-based compensation plans 8 1 10 9 Other
non-current operating charges and income (46) (27) (55) (22)
Income from operations 282 303 500
507 Three months ended June 30, Six
months ended June 30, (in millions of euros) 2015 2014 2015
2014
Earnings attributable to Vivendi SA
shareowners (a) 1,958 1,482 1,991
1,913 Adjustments Amortization of intangible assets acquired
through business combinations 105 83 203 166 Other income (a) (717)
(3) (718) (3) Other charges (a) - 11 4 13 Other financial income
(a) (23) (9) (35) (12) Other financial charges (a) 16 21 34 36
Earnings from discontinued operations (a) (1,262) (1,480) (1,279)
(2,064) Of which capital gain on the divestiture of GVT, after tax
(1,206) - (1,206) - capital gain on the divestiture of Maroc
Telecom group - (786) - (786) capital gain on the sale of 41.5
million Activision Blizzard shares - (84) - (84) Change in deferred
tax asset related to Vivendi SA's French Tax Group and to the
Consolidated Global Profit Tax Systems 26 (14) 70 35 Non-recurring
items related to provision for income taxes 125 4 127 9 Provision
for income taxes on adjustments (31) (26) (62) (53) Non-controlling
interests on adjustments (4) 75 (6) 213
Adjusted net income
193 144 329 253
a. As reported in the Consolidated Statement of Earnings.
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MediaParisJean-Louis Erneux, +33 (0)1 71 71 15
84Solange Maulini, +33 (0) 1 71 71 11 73orNew YorkJim
Fingeroth (Kekst), +1 212 521 4819Dawn Dover (Kekst), +1 212 521 48
17orLondonTim Burt (StockWell), +44 20 7240
2486orInvestor RelationsParisLaurent Mairot, +33 (0)
1 71 71 35 13Julien Dellys, +33 (0) 1 71 71 13 30
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