European media group Vivendi SA on Tuesday posted earnings that missed analyst estimates as its two main units, French pay-TV group Canal Plus and Universal Music Group, reported a drop in earnings.

Vivendi, which in recent years has transformed itself from a telecommunications-to-broadcasting conglomerate to a company with activities mainly in pay television and music recording, said its adjusted earnings dropped 9% to EUR172 million. Analysts polled by FactSet had expected adjusted net income of EUR190 million.

The company swung to a net loss of EUR201 million for the third quarter after being hit by a larger tax bill than last year.

Vivendi, which is run by its chairman and largest shareholder Vincent Bolloré , this summer made a strategic U-turn, buying stakes in telecoms and videogame companies having sold out of those sectors in recent years. At the time, Vivendi was under pressure to sell assets to boost a sagging share price.

The company also disclosed it had net cash of EUR8 billion to go after acquisitions.

"Vivendi anticipates that the next two years will be a period of potentially heavy investments," the company said in a statement.

Write to Nick Kostov at Nick.Kostov@wsj.com

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(END) Dow Jones Newswires

November 10, 2015 13:15 ET (18:15 GMT)

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