By Sam Schechner
PARIS--A sharp decline in French mobile-phone revenue dragged
down profit by nearly a quarter at Vivendi SA (VIV.FR),
underscoring the conglomerate's plans to slowly get rid of telecom
assets and focus on its media businesses.
However, the Paris-based company didn't give any new details on
its strategic shift, while it considers two binding offers for its
African phone operator Maroc Telecom (IAM.CL) and a long-term plan
to either spin off or publicly offer the French mobile unit, known
as SFR.
Overall, the company posted first-quarter net income of 534
million euros ($693 million), down 24% on the year. The company's
adjusted earnings before interest and taxes, a figure watched by
analysts, came in at EUR1.34 billion, down 17% from EUR1.62 billion
a year earlier, in large part because of SFR.
But rising revenue at the company's media businesses--Universal
Music Group, Activision Blizzard and French TV company Canal
Plus--helped offset the declines. Revenue for the quarter slipped
just 1% to EUR7.05 billion.
Vivendi was forced to keep slashing prices at SFR during the
quarter due to a brutal price war, which dates to the January 2012
launch of low-cost phone service from Iliad SA (ILD.FR). In the
quarter, SFR's earnings before interest, taxes, depreciation and
amortization fell by 25% on the year to EUR702 million.
The brightest spot in the quarter was the company's video-game
division Activision Blizzard, which saw revenue rise 12.2% to
EUR1.00 billion, and adjusted EBIT rise 12% to EUR442 million.
Vivendi said its performance in a difficult environment allowed
it to confirm its prior 2013 guidance.
Write to Sam Schechner at Sam.schechner@wsj.com
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