- Growth of Universal Music Group’s
operations
- Canal+ Group’s international
operations delivered a good performance; progression of the
transformation plan at Canal+ in France
- Integration of Gameloft under good
conditions
Regulatory News:
Vivendi (Paris:VIV):
Note: This press release contains unaudited consolidated
earnings established under IFRS, which were approved by Vivendi’s
Management Board on August, 23 2016, reviewed by the Vivendi Audit
Committee on August 24, 2016, and by Vivendi’s Supervisory Board on
August 25, 2016.
2016 half-year key
figures1
Change
year-on-
year
Change at constant
currency and
perimeter2 year-on-year
€5,044 M
-1.0%
-0.9%
IFRS measures
- EBIT3
- Earnings from continuing operations attributable to Vivendi SA
shareowners
- Earnings attributable to Vivendi SA shareowners3
€1,062 M
€913 M
€911M
+3.4%
+28.3%
NS4
Adjusted measures5
€440 M -12.0% -7.6%
€387 M -25.0% -20.4%
€286 M -13.1%
Cash
- Cash flow from operations (CFFO)5
€290 M +23.5%
+€2.1bn vs. +€6.4bn as of December 31, 2015
Vivendi's Supervisory Board met today under the chairmanship of
Vincent Bolloré and reviewed the Group’s Condensed Financial
Statements for the half-year ended June 30, 2016, which were
approved by the Management Board on August 23, 2016.
Revenues were almost stable at €5,044 million (-0.9% at
constant currency and perimeter compared to the first half of
2015). Revenues were driven by the significant growth in
subscription and streaming revenues of Universal Music Group (UMG),
more than offsetting the decline in its digital downloads and
physical sales, and by Canal+ Group’s international operations.
For the first time, at the end of June 2016, the number of
international individual subscribers at Canal+ Group was higher
than the number in mainland France: 5.727 million vs. 5.455
million.
At constant currency and perimeter, income from
operations was down 7.6% at €440 million, notably as a result
of the increased losses suffered by the Canal+ channels in France7.
EBITA decreased by 20.4%, reflecting the unfavorable change
in income from operations and the impact of restructuring charges,
whereas in the first half of 2015, EBITA benefited in particular
from a legal settlement income in the United States at Universal
Music Group and a reversal of reserve at Canal+ Group.
Adjusted net income amounted to a profit of €286 million,
down 13.1%. This change notably reflected the decrease in EBITA
partially offset by the increase in income from equity affiliates,
the decrease in income taxes and the decrease in minority
interests. Excluding the negative non-recurring tax impact of €41
million related to the reversal of reserve following settlement of
the Liberty Media litigation, adjusted net income would have been
stable at €327 million. Adjusted net income per share was €0.22,
compared to €0.24 for the same period in 2015.
Earnings attributable to Vivendi SA shareowners amounted
to a profit of €911 million. Earnings for the first half of 2015
were €1,991 million, notably due to the capital gain on the sale of
GVT on May 28, 2015 (€1,206 million, after taxes). Earnings per
share attributable to Vivendi SA shareowners amounted to €0.71,
compared to €1.47 for the same period in 2015.
Excluding earnings from discontinued operations, earnings
attributable to Vivendi SA shareowners for continuing operations,
after non-controlling interests amounted to a profit of €913
million, compared to a profit of €712 million for the first half of
2015. For the first half of 2016, earnings mainly included the
capital gain on the sale of the remaining interest in Activision
Blizzard in January 2016 (€576 million, before taxes) and the
net reversal of reserve related to the Liberty Media litigation
(€240 million, before taxes). For the first half of 2015, they
primarily included the capital gain on the sale of the 20% interest
in Numericable-SFR (€651 million, before taxes).
The Group's net cash position as of June 30, 2016
amounted to €2.1 billion, compared to €6.4 billion as of December
31, 2015. This change notably reflected the payment of an interim
dividend of €1 per share paid in February 2016, and the balance of
the dividend with respect to fiscal year 2015 of €1 per share paid
in April 2016, representing an aggregate payment of €2.6 billion
over the last six months, as well as cash outflows of €1.6 billion
as part of the share repurchase program.
In France, Canal+ continues to experience declining pay-TV
revenues despite the success of its bundled offers including beIN
Sports. The Group implemented a plan to reduce costs by €300
million, of which around €60 to €80 million will be realized
this year. This plan supports the objective of reaching breakeven
in 2018 for Canal+ channels in France7.
The Management Board confirmed its intention to continue the
shares repurchase program of up to 10% of Vivendi’s share capital
depending on the market conditions.
______________________
1 In compliance with IFRS 5, GVT (sold in 2015), has been
reported as a discontinued operation. In practice, income and
charges from this business have been reported as follows:
- GVT’s contribution, until its effective
divestiture on May 28, 2015, to each line of Vivendi’s Consolidated
Statement of Earnings has been reported on the line “Earnings from
discontinued operations”; and
- the share of net income and the capital
gain recognized as a result of the divestiture have been excluded
from Vivendi’s adjusted net income.
2 Constant perimeter reflects the impacts of the acquisitions of
Dailymotion on June 30, 2015, Radionomy on December 17, 2015 and
Alterna’TV on April 7, 2016.
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 IV.
4 As of June 30, 2015, Earnings attributable to Vivendi SA
shareowners amounted to €1,991 million, including earnings from
discontinued operations for €1,279 million.
5 Non GAAP measures.
6 Excluding the unfavorable tax impact of €41 million related to
the reversal of reserve following settlement of the Liberty Media
litigation, adjusted net income was stable at €327 million.
7 Canal+, Canal+ Cinéma, Canal+ Sport, Canal+ Séries, Canal+
Family and Canal+ Décalé
Investments in mobile-dedicated content:
Gameloft and Studio+
During the first half of 2016, Vivendi successfully completed
its public tender offer for the shares of Gameloft, a global leader
in mobile video games.
The company has been consolidated since June 29, 2016. A number
of steps were immediately taken to ensure the smooth integration of
the Gameloft teams within the Group and to implement shortly a
development plan making full use of Gameloft’s creative force and
the potential offered by Vivendi.
This acquisition reinforces the Group’s strategy to develop
itself as a global leader in media and content, with a strong
presence in the fast-growing market of mobile consumption.
In the next few weeks, Vivendi will launch Studio+, the first
global offering of premium series for mobile devices, in
partnership with several telecom operators. Studio+ will offer
exclusive premium series created specifically for smartphones and
tablets, characterized by their innovative, short and powerful
format: 10 episodes with 10 minutes durations for each series.
About 25 original premium series covering every genre (e.g.,
action, romance, thriller), shot in six different languages and in
18 countries, have been produced or are in post-production, with
about 60 series currently in development.
Telecom Italia
Telecom Italia’s new management team, led by Flavio Cattaneo,
named Chief Executive Officer in March 2016, has set new targets
for cost optimization in Italy and Brazil over the period
2016-2018. Despite a tough competitive environment, Telecom Italia
performed well in Italy and Brazil in the second quarter of 2016,
allowing it to upgrade its 2016 full year outlook.
Vivendi and Mediaset
In early 2016, the Vivendi and Mediaset groups wished to enter
into a development agreement.
Vivendi’s purchase of Mediaset Premium, a subsidiary of
Mediaset, was based on financial assumptions provided by Mediaset
to Vivendi in March 2016. Vivendi raised questions about these
assumptions and informed Mediaset.
The agreement signed on April 8, 2016 was subsequently subject
to a due diligence review carried out by the audit firm Deloitte as
agreed contractually. It became clear from this audit and Vivendi’s
analyses that the figures provided prior to signing were not
realistic and were founded on an artificially-inflated base. This
led the two parties to try to renegotiate the terms of the
agreement in June. While they continued discussing with Vivendi,
Mediaset and Fininvest suddenly proceeded to launch media attacks
detrimental to Vivendi’s interests and image.
In addition, although Vivendi timely completed the
pre-notification process of the transaction with the European
Commission, the Commission would not accept a formal filing while
the parties were discussing their differences, and in any event it
is possible that the Commission’s clearance might not be obtained
before September 30th, on which date the contract would become
void.
In respect of the lawsuit filed by Mediaset, according to the
documents informally viewed to date, the first procedural hearing
would not be held before February 27, 2017.
Comments on Business Highlights
Universal Music Group
Universal Music Group’s (UMG) revenues amounted to
€2,315 million, up 1.6% at constant currency compared to the
first half of 2015 (+0.2% on an actual basis), driven by growth
across all of its divisions. Excluding a legal settlement income
for the first half of 2015, revenues were up 3.0% at constant
currency and perimeter.
Recorded music revenues grew 0.5% at constant currency thanks to
growth in subscription and streaming revenues (+62.4%) which more
than offset the decline in both digital download and physical
sales.
Music publishing revenues grew 4.0% at constant currency, driven
by increased subscription and streaming revenues, as well as growth
in synchronization income. Merchandising and other revenues were up
3.2% at constant currency thanks to stronger touring activity.
Recorded music best sellers for the first half of 2016 included
new releases from Drake, Rihanna and Ariana Grande, as well as
carryover sales from Justin Bieber and The Weeknd. In the United
States, UMG had four of the Top 5 most streamed albums, including
all of the top three (Drake, Rihanna, Justin Bieber).
UMG’s income from operations amounted to €217 million, up 24.6%
at constant currency compared to the first half of 2015 (+21.0% on
actual basis). This favorable performance reflected both revenue
growth and cost savings.
UMG’s EBITA amounted to €177 million, up 7.4% at constant
currency compared to the first half of 2015 (+3.7% on an actual
basis). EBITA included restructuring charges in the first half of
2015 and 2016, and a legal settlement income in the first half of
2015.
Canal+ Group
Canal+ Group's revenues amounted to €2,639 million, down 3.5%
compared to the first half of 2015 (-3.0% at constant currency and
perimeter). Canal+ Group had a total of 15.8 million
subscriptions, a year-on-year increase of 558,000, thanks to the
very strong performance of its international operations. In
mainland France, the number of subscriptions with commitment
continued to decline to 8.187 million as of June 30, 2016,
representing a decrease of 272,000 over the first half of 2016.
International pay-TV revenues increased thanks to growth in the
individual subscriber base, notably in Africa where Canal+ Group
had 2.2 million subscribers as of June 30, 2016, 615,000 more than
at the end of June 2015, as well as in Vietnam, where the number of
individual subscribers exceeded 900,000 at the end of June 2016
(+139,000 in one year).
The dynamic growth was driven by the enhancement of the
offerings with the addition of the broadcasting of the UEFA Euro
2016 in Africa and Vietnam, and the broadcasting of the English
Premier League in Vietnam for the next three seasons (2016/2017 to
2018/2019).
Advertising revenues from free-to-air channels, up 10.1%
compared to the first half of 2015, benefited from the strong
audiences of D8 and D17 (to be renamed C8 and CStar effective
September 5, 2016). At the end of June 2016, D8 was once again the
fourth most watched French channel with an average share of 4.9% of
its primary target audience of 25-49 year olds for the first half
of 2016. On May 28, 2016, D8 was the most watched French channel
with a 25.6% share of this target audience thanks to the
broadcasting of the Champions' League Final.
Studiocanal's revenues were down compared to the first half of
2015, which notably benefited from the successful theatrical
release of Shaun the Sheep and the video releases of Paddington and
The Imitation Game.
Canal+ Group's income from operations amounted to €297 million,
compared to €368 million for the first half of 2015, and EBITA
amounted to €288 million (including reorganization costs), compared
to €388 million for the first half of 2015.
This decline was notably due to the difficulties faced by the
pay-TV operations in mainland France and the lower profitability of
Studiocanal and the free-to-air channels. EBITA from Canal+
channels in France7 amounted to a €106 million loss, compared to
€47 million for the first half of 2015.
A €300 million cost-savings plan, which does not impact the
customer, has been implemented at Canal+ in France. It comprises a
€100 million reduction in costs associated with subscriptions
(e.g., marketing, set-top box management), a €50 million reduction
in technical and broadcasting-related costs as well as a €150
million decrease in program production and publishing costs. The
full effects of this plan will be seen in 2018, with savings of
about €60 to € 80 million expected to be realized as soon as
2016.
Vivendi Village
Vivendi Village’s revenues amounted to €54 million, up 6.9%
compared to the first half of 2015 (+8.3% at constant currency).
Several new entities have joined Vivendi Village over the past
year, including the Théâtre de L‘Œuvre in Paris, the Canal Olympia
venues in Africa and, more recently, Olympia Production, a live
entertainment production company.
Vivendi Village’s income from operations and EBITA amounted to
losses of €8 million and €4 million, respectively. Vivendi Village
aims to serve as an outlet for experimentation for the entire Group
thanks to the flexibility offered by its small organizational
structures.
Thus, on June 14, 2016, CanalOlympia inaugurated the first of
its cinema and live performance venues in Africa, located in
Yaoundé (Cameroon). It will be part of a network of several dozen
of such venues which will be built progressively across Central and
West Africa.
With regard to Watchever, it is refocusing its operations on the
development of new international paid-for streaming services
including Studio+, which will be launching the first global premium
series offer for mobile screens.
In ticketing, See Tickets has strengthened its operations in the
United States by acquiring Flavorus on June 24, 2016, and won a
major contract in the United Kingdom with the Royal Horticultural
Society to sell the tickets to all of their shows for the next
three years (about half a million tickets annually).
In 2017, Olympia Production will co-produce the tours of Matt
Pokora and Slimane (winner of The Voice in France in 2016). It is
also producing Florian Zeller’s new play which will open the season
at the Théâtre de L‘Œuvre in October 2016.
New Initiatives (Dailymotion and Vivendi
Content)
Revenues generated by New Initiatives, which includes
Dailymotion since June 30, 2015, as well as Vivendi Content, a
business whose purpose is to develop new content formats, amounted
to €58 million, compared to €1 million in the first half of 2015.
New Initiatives recorded income from operations amounting to a loss
of €17 million and EBITA amounting to a loss of €24 million.
Following its integration into the Group, the year 2016 marked a
new start for Dailymotion. During the first half of 2016, the focus
was on the implementation of various strategic projects that will
continue throughout the year. Dailymotion expects to start
launching some of these projects in 2017, including:
- an editorial repositioning and a revamping
of the user experience, thereby enabling Dailymotion to increase
its global user base, which already stands at close to 400 million
monthly users;
- the strengthening of Dailymotion’s
technical advertising platform in order to continue to transform
the growing market for digital video advertising; and
- the pursuit of further international
development, which is already well advanced. In the first half of
2016, Dailymotion opened its first office in the city of Abidjan,
in Africa, in partnership with Canal+ Overseas and from there it
will be able to develop its activities on the continent.
This relaunch is accompanied by a strengthening of the
management team, with a particular focus on Dailymotion’s three
strategic pillars: content and marketing, advertising monetization
and technology.
For additional information, please refer to the “Financial
Report and Unaudited Condensed Financial Statements for the
half-year ended June 30, 2016” which will be released later online
on Vivendi’s website (www.vivendi.com).
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, the U.S and France), MyBestPro
(experts counseling), Watchever (subscription video-on-demand),
Radionomy (digital radio), the L’Olympia and the Theâtre de
L‘Oeuvre venues in Paris, the CanalOlympia venues in Africa and
Olympia Production. With 3.5 billion videos viewed each month,
Dailymotion is one of the biggest video content aggregation and
distribution platforms in the world. Gameloft is a worldwide
leading video games on mobile, with 2 million games downloaded per
day.
www.vivendi.com, www.cultureswithvivendi.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. 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 of the Group
filed by Vivendi with the Autorité des Marchés Financiers (the
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. 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
Speakers:Arnaud de PuyfontaineChief Executive
OfficerHervé PhilippeMember of the Management Board and
Chief Financial Officer
Date: Thursday, August 25, 20166:00pm 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)
The conference will be held in English with a French
translation.
Numbers to dial:UK + 44 (0) 203 427 19 11US +
1 212 444 08 96France + 33 (0) 1 76 77 22 20
Access Code (English): 472 56 72Access code (French
translation): 313 91 84
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
2016 2015 2016 2015
2,553 2,603 -
1.9% Revenues 5,044 5,095 - 1.0%
(1,578) (1,559) Cost of revenues (3,088) (3,069) (774) (724)
Selling, general and administrative expenses excluding amortization
of intangible assets acquired through business combinations (1,521)
(1,481) (27) (22) Restructuring charges (48) (29) (55) (105)
Amortization of intangible assets acquired through business
combinations (110) (203) - - Reversal of reserve related to the
Liberty Media litigation in the United States 240 - 77 717 Other
income 657 718 (102) - Other charges (112) (4)
94 910
- 89.7% EBIT 1,062 1,027 + 3.4%
25 (1) Income from equity affiliates 12 (7) (9) (9) Interest (17)
(14) 21 12 Income from investments 22 21 11 23 Other financial
income 17 35 (14) (16) Other financial charges (27) (34)
128
919 - 86.1% Earnings from continuing operations
before provision for income taxes 1,069 1,028
+ 4.0% (70) (206) Provision for income taxes (135) (282)
58 713 - 91.9% Earnings from continuing
operations 934 746 + 25.2% (1) 1,262
Earnings from discontinued operations (2) 1,279
57
1,975 - 97.1% Earnings 932 2,025
- 53.9% (8) (17) Non-controlling interests (21) (34)
49 1,958 - 97.5% Earnings attributable to
Vivendi SA shareowners 911 1,991 - 54.2%
50 696 - 92.8%
of which earnings from continuing
operations attributable to Vivendi SA shareowners 913
712 + 28.3% 0.04 1.44 Earnings attributable to
Vivendi SA shareowners per share - basic 0.71 1.47 0.04 1.43
Earnings attributable to Vivendi SA shareowners per share - diluted
0.71 1.46
Nota:
As a reminder, GVT (sold in 2015) has been reported as a
discontinued operation in compliance with IFRS 5. In practice,
income and charges from this business has been reported as
follows:
- GVT’s contribution, until its effective
divestiture on May 28, 2015, to each line of Vivendi’s Consolidated
Statement of Earnings as well as any capital gain recognized has
been reported on the line “Earnings from discontinued operations”;
and
- the share of net income and the capital
gain recognized as a result of the completed divestiture have been
excluded from Vivendi’s adjusted net income.
For any additional information, please refer to the “2016 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
2016 2015 2016 2015
2,553 2,603 -
1.9% Revenues 5,044 5,095 - 1.0%
212 282 - 24.7% Income from operations
440 500 - 12.0% 174 298 -
41.5% EBITA 387 516 - 25.0% 51 (1)
Income from equity affiliates in ANI 38 (7) (9) (9) Interest (17)
(14) 21 12 Income from investments 22 21 237 300 - 20.7% Adjusted
earnings from continuing operations before provision for income
taxes 430 516 - 16.5% (40) (86) Provision for income taxes (118)
(147) 197 214 - 8.1% Adjusted net income before non-controlling
interests 312 369 - 15.5% (10) (21) Non-controlling interests (26)
(40)
187 193 - 3.1% Adjusted net income
286 329 - 13.1% 0.15 0.14 Adjusted net
income per share - basic 0.22 0.24 0.15 0.14 Adjusted net income
per share - diluted 0.22 0.24
The reconciliation of EBIT to EBITA and to income from
operations, as well as of earnings attributable to Vivendi SA
shareowners to adjusted net income is presented in the Appendix
IV.
APPENDIX III
VIVENDI
REVENUES, INCOME FROM OPERATIONS AND
EBITA
BY BUSINESS SEGMENT
(IFRS, unaudited)
Three months ended June 30, (in millions of euros)
2016 2015 % Change
% Change atconstantcurrency
% Change atconstantcurrency andperimeter
(a)
Revenues Universal Music Group 1,196 1,214 -1.4% +2.5% +2.5%
Canal+ Group 1,311 1,364 -3.8% -2.9% -3.1% Vivendi Village 29 26
+11.1% +13.4% +2.3% New Initiatives 28 1 Elimination of
intersegment transactions (11) (2)
Total
Vivendi 2,553 2,603 -1.9% +0.4%
-0.5% Income from operations Universal Music
Group 115 91 +26.0% +30.4% +30.4% Canal+ Group 133 214 -38.0%
-37.6% -37.7% Vivendi Village (4) 4 na na na New Initiatives (8)
(1) Corporate (24) (26)
Total Vivendi
212 282 -24.7% -23.0% -21.0%
EBITA Universal Music Group 98 89 +10.8% +14.5%
+14.5% Canal+ Group 119 223 -46.8% -46.4% -46.4% Vivendi Village
(4) 4 na na na New Initiatives (14) (1) Corporate (25) (17)
Total Vivendi 174 298
-41.5% -40.1% -38.0%
APPENDIX III (Cont’d)
VIVENDI
REVENUES, INCOME FROM OPERATIONS AND
EBITA
BY BUSINESS SEGMENT
(IFRS, unaudited)
Six months ended June 30, (in millions of euros) 2016
2015 % Change
% Change atconstantcurrency
% Change atconstantcurrency andperimeter
(a)
Revenues Universal Music Group 2,315 2,311 +0.2% +1.6% +1.6%
Canal+ Group 2,639 2,734 -3.5% -2.9% -3.0% Vivendi Village 54 51
+6.9% +8.3% -2.2% New Initiatives 58 1 Elimination of intersegment
transactions (22) (2)
Total Vivendi
5,044 5,095 -1.0% - -0.9%
Income from operations Universal Music Group 217 179 +21.0%
+24.6% +24.6% Canal+ Group 297 368 -19.4% -18.9% -19.0% Vivendi
Village (8) 8 na na na New Initiatives (17) (1) Corporate (49) (54)
Total Vivendi 440 500
-12.0% -10.3% -7.6% EBITA
Universal Music Group 177 171 +3.7% +7.4% +7.4% Canal+ Group 288
388 -25.7% -25.3% -25.3% Vivendi Village (4) 8 na na na New
Initiatives (24) (1) Corporate (50) (50)
Total Vivendi 387 516 -25.0%
-23.4% -20.4%
na: not applicable.
a. Constant perimeter reflects the impacts of the following
acquisitions:
- Dailymotion within New Initiatives
(June 30, 2015);
- Radionomy within Vivendi Village
(December 17, 2015); and
- Alterna’TV by Canal+ Group (April 7,
2016).
The reconciliation of EBIT to EBITA and to income from
operations is presented in the Appendix IV.
APPENDIX IV
VIVENDI
RECONCILIATION OF NON-GAAP MEASURESIN
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. Vivendi
considers these to be relevant indicators of 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 provide a better illustration of
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) 2016 2015 2016
2015
EBIT (a) 94 910 1,062 1,027
Adjustments Amortization of intangible assets acquired through
business combinations 55 105 110 203 Impairment losses on
intangible assets acquired through business combinations (a) - - -
- Reversal of reserve related to the Liberty Media litigation in
the United States (a) - - (240) - Other income (a) (77) (717) (657)
(718) Other charges (a) 102 - 112 4
EBITA 174
298 387 516 Adjustments Restructuring charges
(a) 27 22 48 29 Charges related to equity-settled share-based
compensation plans 3 8 5 10 Other non-current operating charges and
income 8 (46) - (55)
Income from operations 212
282 440 500 Three months ended
June 30, Six months ended June 30, (in millions of euros)
2016 2015 2016 2015
Earnings attributable to
Vivendi SA shareowners (a) 49 1,958 911
1,991 Adjustments Amortization of intangible assets acquired
through business combinations 55 105 110 203 Reversal of reserve
related to the Liberty Media litigation in the United States (a) -
- (240) - Other income (a) (77) (717) (657) (718) Other charges (a)
102 - 112 4 Amortization of intangible assets related to equity
affiliates 26 - 26 - Other financial income (a) (11) (23) (17) (35)
Other financial charges (a) 14 16 27 34 Earnings from discontinued
operations (a) 1 (1,262) 2 (1,279) Of which capital gain on the
divestiture of GVT, after taxes - (1,206) - (1,206) Change in
deferred tax asset related to Vivendi SA's French Tax Group and to
the Consolidated Global Profit Tax Systems 2 (98) 3 (54) Income
taxes related to the sale of the 20% interest in Numericable-SFR -
124 - 124 Non-recurring items related to provision for income taxes
42 125 44 127 Provision for income taxes on adjustments (14) (31)
(30) (62) Non-controlling interests on adjustments (2) (4) (5) (6)
Adjusted net income 187 193 286
329
a. As reported in the Consolidated Statement of Earnings.
APPENDIX V
VIVENDI
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
(IFRS, unaudited)
(in millions of euros)
June 30, 2016(unaudited)
December 31,2015
ASSETS Goodwill 10,705 10,177 Non-current content assets
2,172 2,286 Other intangible assets 293 224 Property, plant and
equipment 695 737 Investments in equity affiliates 4,046 3,435
Non-current financial assets 2,119 4,132 Deferred tax assets 685
622
Non-current assets 20,715 21,613
Inventories 125 117 Current tax receivables 535 653 Current content
assets 789 1,088 Trade accounts receivable and other 1,914 2,139
Current financial assets 735 1,111 Cash and cash equivalents 5,764
8,225
Current assets 9,862 13,333
TOTAL ASSETS 30,577 34,946
EQUITY AND LIABILITIES Share capital 7,050 7,526 Additional
paid-in capital 4,190 5,343 Treasury shares (715) (702) Retained
earnings and other 7,644 8,687
Vivendi SA shareowners'
equity 18,169 20,854 Non-controlling interests
230 232
Total equity 18,399 21,086
Non-current provisions 1,700 2,679 Long-term borrowings and other
financial liabilities 2,416 1,555 Deferred tax liabilities 676 705
Other non-current liabilities 82 105
Non-current liabilities
4,874 5,044 Current provisions 346 363
Short-term borrowings and other financial liabilities 1,958 1,383
Trade accounts payable and other 4,896 6,737 Current tax payables
104 333
Current liabilities 7,304 8,816
Total liabilities 12,178 13,860
TOTAL EQUITY AND LIABILITIES 30,577 34,946
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MediaParisJean-Louis Erneux, +33 (0)1 71 71 15
84Solange Maulini, +33 (0) 1 71 71 11 73orLondonTim Burt
(Teneo Strategy), +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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