Regulatory News:
For the first quarter of 2020, Vivendi's (Paris:VIV) revenues
were EUR3,870 million, compared to EUR3,459 million in the same
period in 2019, an increase of EUR11.9%, mainly resulting from the
growth of Universal Music Group (UMG) (+EUR267 million) and Canal+
Group (+EUR120 million, including EUR102 million relating to M7).
At constant currency and perimeter(1) , revenues increased by 4.4%
compared to the first quarter of 2019, primarily driven by the
growth of UMG (+12.7%).
Vivendi's revenues for the first quarter of 2020 were little
affected by the consequences of the COVID-19 pandemic, the impact
of which varied according to the Group's businesses and the
geographical regions in which it operates. A decline in revenues
was recorded for certain business activities in March, notably by
Havas Group, Editis and Vivendi Village, corresponding to the first
effects of the COVID-19 crisis.
Each of Vivendi's businesses is closely monitoring the current
and potential effects of this outbreak. At this point, it is
impossible to determine with certainty how long it will last and
how it will impact Vivendi's revenues and annual results. However,
the revenues of certain businesses, notably Havas Group, Editis and
Vivendi Village, are expected to be affected in the second quarter
of 2020.
Vivendi is confident in the resilience of its main businesses.
It makes every effort to ensure the continuity of its activities,
as well as to best serve and entertain its customers and its
audiences while respecting the instructions of the authorities in
each country in which it operates.
Following the closing on March 31, 2020, of the sale of a 10%
interest in Universal Music Group (UMG) to a consortium led by
Tencent based on an enterprise value of EUR30 billion for 100 % of
UMG's capital, the Group's gross cash position amounted to EUR4.8
billion at that date. Vivendi SE also has EUR3.9 billion in
confirmed credit facilities, including EUR2.3 billion immediately
available, taking into account outstanding issues of short-term
commercial paper and drawings made as of that date.
In addition, the bond debt amounts to EUR5.4 billion, with
maturities extending to 2028. Taking these factors into account,
the Group's net debt stood at EUR2.4 billion on March 31, 2020, and
the gearing (financial net debt to equity ratio) would be
approximately 15% (based on the Group's equity balance as of
December 31, 2019).
Vivendi's financial position is, therefore, solid. This
assessment was confirmed by Moody's on March 31, 2020, when it
renewed the Group's Baa2 debt rating with a stable outlook.
It is reminded that the Tencent-led consortium has the option to
acquire, on the same valuation basis, an additional amount of up to
10% of UMG's share capital until January 15, 2021. (See first
quarter highlights, below.)
Universal Music Group
For the first quarter of 2020, Universal Music Group's (UMG)
revenues were EUR1,769 million, up 12.7% at constant currency and
perimeter compared to the first quarter of 2019 (+17.8% on an
actual basis).
Recorded music revenues grew by 13.1% at constant currency and
perimeter thanks to the growth in subscription and streaming
revenues (+16.5%) and the receipt of a digital royalty claim.
Revenues were impacted by the continued decline of downloads
(-26.1%), while physical sales ended marginally below the first
quarter of 2019 (-1.4%).
Recorded music best sellers for the first quarter of 2020
included new releases from King & Prince, Justin Bieber, Eminem
and The Weeknd, as well as continued sales from Billie Eilish and
Post Malone.
Music publishing revenues grew by 17.7% at constant currency and
perimeter compared to the first quarter of 2019, also driven by
increased subscription and streaming revenues.
Merchandising and other revenues were down 4.9% at constant
currency and perimeter compared to the first quarter of 2019, as
lower touring activity was partly offset by growth in D2C
(direct-to-consumer) revenues.
Canal+ Group
For the first quarter of 2020, Canal+ Group's revenues were
EUR1,372 million, a 9.6% increase compared to the same period in
2019 (up 1.0% at constant currency and perimeter). This trend was
driven in particular by the growth in revenues from international
pay-tv operations.
The total subscriber portfolio (individual and collective) of
Canal+ Group, which now also integrates M7's activities, reached
20.1 million at the end of the first quarter of 2020, compared to
16.7 million for the first quarter of 2019 on a pro forma basis,
including 8.4 million in mainland France (more than 7.8 individual
subscribers).
Revenues from television operations in mainland France decreased
slightly (down 0.7% at constant currency and perimeter). The
individual subscriber base to Canal+ offers continued to grow, with
a net gain of 62,000 subscribers year-on-year.
Revenues from international operations grew by 35.3% (up 8.7% at
constant currency and perimeter), thanks to the robust year-on-year
growth in the number of subscribers (+3.5 million), which was
driven both by organic growth and the integration of M7.
The current COVID-19 health crisis is affecting all of Canal+
Group's revenue sources. Canal+ Group is taking action to ensure
the continuity of most of its operations and to implement
solidarity initiatives, while increasing its vigilance in reviewing
expenditures and investments.
At the request of the French government, Canal+ postponed to
April 7, 2020 the launch of Disney + in France, initially scheduled
for March 24, due to the risk of network saturation due to the
health crisis.
Havas Group
For the first quarter of 2020, Havas Group revenues were EUR524
million. Net revenues(2) were EUR507 million, up by 1.0% compared
to the first quarter of 2019. Organic growth declined 3.3%,
exchange rates had a positive impact of 1.8% and acquisitions
contributed 2.5%.
Business performance over the first quarter of 2020 reflected
the initial impact of the current global health crisis. This impact
varies significantly depending on the regions, the businesses and
the sectors in which its clients operate. At this stage of the
crisis, it is still difficult to identify any clear trends. While
performances remained globally aligned with budget through the end
of February, those of March were in decline.
At the end of March, business activity in North America was
holding up well. Business was down sharply in most European
countries, but remained positive in the United Kingdom. At constant
currency and perimeter, Asia-Pacific reported a slight downturn
overall, despite China, Hong Kong and Singapore being significantly
affected over the first quarter; India was a major contributor to
the region's overall performance. Latin America was down.
The second quarter will undoubtedly be affected by the current
health crisis. Even so, it is essential for brands to continue
communicating over this period. Havas Group is mobilizing all its
resources to monitor the rapid shift in consumer behavior, to
better anticipate its clients' communication needs. At the same
time, Havas Group is adjusting its operating costs to limit the
impact on its profitability.
Editis
Editis' revenues were EUR116 million, down 14.3% on a pro forma
basis at constant currency and perimeter compared to the first
quarter of 2019. The entire revenue decline can be attributed to
March, as the beginning of the lockdown period negatively impacted
the publishing industry (most of the points of sale have been
forced to close).
All of Editis' activities were impacted: at constant currency
and perimeter, Education & Reference revenues decreased 9.9%,
literature revenues decreased 20.7% and Diffusion &
Distribution revenues related to third-party publishers decreased
5.1%. However, extracurricular, e-learning and audiobook revenues
are growing.
Before the start of the lockdown period, literature performed
well with the launch of Michel Bussi's Au soleil redouté in
February, which immediately became a best-seller, and the success
of Frédéric Saldmann's On n'est jamais mieux guéri que par
soi-même.
Editis also confirmed its leading position in the YouTubers and
influencers' book segment (40% market share).
Lizzie, Editis' audiobook brand, received two of the three
audiobook prizes awarded by France Culture/Lire dans le noir: John
Fante's Mon chien Stupide, read by Thibault de Montalembert in the
fiction category, and Léonard de Vinci, a biography by Walter
Isaacson, read by François Hatt in the non-fiction category.
Other Businesses
For the first quarter of 2020, Gameloft's revenues were EUR61
million, down 10.4% year-on-year. Gameloft's sales on OTT platforms
(Apple, Google, Microsoft, etc.) represented 73% of Gameloft's
total sales. Disney Magic Kingdoms, March of Empires, Asphalt 9:
Legends, Dragon Mania Legends and Asphalt 8: Airborne were the
best-selling titles of the first quarter of 2020, accounting for
54% of Gameloft's total revenues. Asphalt 9: Legends, the latest
entry in the world's most downloaded and multi-awarded mobile
racing franchise, reached 4 million downloads in just five months
on the Nintendo Switch(TM) system.
For the first quarter of 2020, Vivendi Village's revenues were
EUR23 million, a decrease of 3.4% (-13.4% at constant currency and
perimeter) compared to the first quarter of 2019. The ticketing
businesses, operating under the See Tickets brand, generated
revenues of EUR14 million, a decrease of 5.4% compared to the first
quarter of 2019. Live activities recorded revenues of EUR8 million,
an increase of 1.4% compared to the first quarter of 2019. After a
strong start to the quarter, the March 9, 2020, decision of the
French authorities to ban all gathering of more than 1,000 people,
and the lockdown measures gradually taken in Europe and Africa,
weighed heavily on the revenues at the end of the period.
For the first quarter of 2020, New Initiatives, which brings
together Dailymotion and the GVA entities, recorded revenues of
EUR15 million, down 3.9% compared to the first quarter of 2019
(-3.9% at constant currency and perimeter). Dailymotion has forged
numerous partnerships, including with Pure Medias (Webedia) in
France, Workpoint TV, The Manila Times and Glia Cloud in Asia, and
Extra TV and Televisa in the US/LATAM region. Dailymotion's
audience for premium content grew by more than 50% compared to the
first quarter of 2019 and now represents more than 70% of its
overall audience. GVA, a telecoms operator in Africa, launched its
very high-speed Internet access in March in two additional capital
cities, Abidjan in Ivory Coast and Kigali in Rwanda, therefore
strengthening its presence and network on the continent
significantly.
First quarter highlights and recent events
-- Agreement with Tencent: On March 31, 2020, Vivendi announced that it has
completed the sale of 10% of the share capital of Universal Music Group
(UMG) to a Tencent-led consortium, three months after the signing of the
December 31, 2019 agreement, based on an enterprise value of EUR30
billion for 100% of UMG's share capital. This sale of 10% generated a
cash inflow of around EUR2.8 billion3. In Vivendi's Consolidated
Financial Statements, in accordance with IFRS 10, the capital gain on the
sale of 10% of UMG's share capital, equal to the difference between the
sale price and the value in the Consolidated Financial Statements of
non-controlling interests sold, will be directly recorded as an increase
in equity attributable to Vivendi SE shareowners. In accordance with
applicable standards, in Vivendi's Statutory Financial Statements, the
capital gain on the sale of 10% of UMG's share capital will be recorded
in earnings. The consortium is led by Tencent and includes Tencent Music
Entertainment and other financial co-investors. The consortium has the
option to acquire, on the same valuation basis, an additional amount of
up to 10% of UMG's share capital until January 15, 2021. This transaction
is complemented by a separate agreement which enables Tencent Music
Entertainment to acquire a minority share capital of UMG's subsidiary
housing its Greater China operations. Vivendi is very happy with the
arrival of the Tencent-led consortium. It will enable UMG to further
develop in the Asian market. Now that this very significant strategic
transaction has been completed, Vivendi will pursue the possible sale of
additional minority interests in UMG, assisted by several banks which it
has mandated. An initial public offering is currently planned for early
2023 at the latest. Vivendi intends to use the proceeds from these
different transactions for substantial share buyback operations and
acquisitions.
-- Share buyback program: Between January 1 and March 6, 2020, Vivendi
repurchased 23.02 million shares, i.e., 1.76% of the share capital as of
the implementation date of the share buyback program, representing a
EUR559 million outflow. Consequently, the aggregate number of repurchased
shares under the program amounted to 130.93 million shares, i.e., 10% of
the share capital (as of the implementation date of the share buyback
program) in accordance with the authorization of the Shareholders'
Meeting on April 15, 2019. As of today, Vivendi holds 35.50 million
treasury shares, representing 2.99% of its share capital, of which 8.14
million shares allocated to cover performance share plans, 8.25 million
shares held for transfer to employees or officers of Vivendi group
entities (employee shareholding plan) and 19.10 million shares designated
for cancellation.
-- EMTN program: On April 3, 2020, Vivendi renewed its Euro Medium-Term Note
(EMTN) program, increasing it to EUR8 billion, giving Vivendi full
flexibility to issue bonds. This program was filed with the AMF
(Autorité des marchés financiers) under visa ndeg 20-117 for a
12-month period. In addition, on March 31, 2020, Moody's confirmed
Vivendi's long-term rating of Baa2 with a stable outlook.
-- Combined General Shareholders' Meeting today at 3.30 p.m. (Paris Time),
to be broadcast live in its entirety on the Group's website
www.vivendi.com: Vivendi shareholders were asked to vote on 30
resolutions, ordinary or extraordinary. In particular, they voted on the
proposed renewal of the term of office of Mr. Yannick Bolloré and
the appointment of Mr. Laurent Dassault to the Supervisory Board.
Slides related to the first quarter revenues 2020 are available
on the Group's website www.vivendi.com in the section titled
Investors-Analysts.
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press
release contains forward-looking statements with respect Vivendi's
financial condition, results of operations, business, strategy,
plans and outlook, 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 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.
In addition, Vivendi's revenues for the first quarter of 2020
were little affected by the consequences of the COVID-19 pandemic,
the impact of which varied according to the Group's businesses and
the geographical regions in which it operates. A decline in
revenues was recorded for certain business activities in March,
notably by Havas Group, Editis and Vivendi Village, corresponding
to the first effects of the COVID-19 crisis.
Each of Vivendi's businesses is closely monitoring the current
and potential effects of this outbreak. At this point, it is
impossible to determine with certainty how long it will last and
how it will impact Vivendi's revenues and annual results. However,
the revenues of certain businesses, notably Havas Group, Editis and
Vivendi Village, are expected to be affected in the second quarter
of 2020.
Vivendi is confident in the resilience of its main businesses.
It makes every effort to ensure the continuity of its activities,
as well as to best serve and entertain its customers and its
audiences while respecting the instructions of the authorities in
each country in which it operates.
Unsponsored ADRs. Vivendi does not sponsor any 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.
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group with European roots. In
content creation, Vivendi owns powerful, complementary assets in
music (Universal Music Group), movies and series (Canal+ Group),
publishing (Editis) and games (Gameloft) which are the most popular
forms of entertainment content in the world today. In the
distribution market, Vivendi has acquired the Dailymotion platform
and repositioned it to create a new digital showcase for its
content. The Group has also joined forces with several telecom
operators and platforms to maximize the reach of its distribution
networks. In communications, through Havas. the Group possesses
unique creative expertise in promoting free content and producing
short formats, which are increasingly viewed on mobile devices. In
addition, through Vivendi Village, the Group explores new forms of
business in live entertainment, franchises and ticketing that are
complementary to its core activities. Vivendi's various businesses
cohesively work together as an integrated industrial group to
create greater value. www.vivendi.com
APPIX
VIVI
REVENUES BY BUSINESS SEGMENT
Three months ended
March 31,
% Change
at
constant
% Change currency
at and
(in millions of constant perimeter
euros) 2020 2019 % Change currency (a)
Revenues
Universal Music
Group 1,769 1,502 17.8% 15.0% 12.7%
Canal+ Group 1,372 1,252 9.6% 9.4% 1.0%
Havas Group 524 525 -0.2% -1.9% -4.4%
Editis 116 89 31.0% 31.0% -14.3%
Gameloft 61 68 -10.4% -11.6% -11.6%
Vivendi Village 23 23 -3.4% -5.0% -13.4%
New Initiatives 15 15 -3.9% -3.9% -3.9%
Elimination of
intersegment
transactions (10) (15)
Total Vivendi 3,870 3,459 11.9% 10.3% 4.4%
a. Constant perimeter reflects the impacts of the acquisition of
M7 by Canal+ Group (September 12, 2019), the acquisition of the
remaining interest in Ingrooves Music Group, which has been
consolidated by Universal Music Group (March 15, 2019) and the
acquisition of Editis (January 31, 2019).
(1) Constant perimeter reflects the impacts of the acquisition
of M7 by Canal+ Group (September 12, 2019), the acquisition of the
remaining interest in Ingrooves Music Group, which has been
consolidated by Universal Music Group (March 15, 2019) and the
acquisition of Editis (January 31, 2019).
(2) Net revenues correspond to revenues less pass-through costs
rebilled to customers.
(3) In connection with the pre-closing streamlining of UMG's
legal structure, some debt was incurred at the level of the UMG
holding company consisting of an internal loan between UMG and
Vivendi SE (without any increase in Vivendi's consolidated
debt).
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200419005036/en/
CONTACT: Media
Paris
Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73
Investor Relations
Paris
Xavier Le Roy
+33 (0) 1 71 71 18 77
Nathalie Pellet
+33 (0)1 71 71 11 24
Delphine Maillet
+33 (0)1 71 71 17 20
SOURCE: Vivendi
Copyright Business Wire 2020
(END) Dow Jones Newswires
April 20, 2020 02:18 ET (06:18 GMT)
Vivendi (PK) (USOTC:VIVHY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Vivendi (PK) (USOTC:VIVHY)
Historical Stock Chart
From Jul 2023 to Jul 2024