French-based media conglomerate Vivendi (VIVEF.PK, VIV.L) reported Thursday that third quarter profit surged from last year, boosted by a one-time gain. However, on an adjusted basis, earnings declined from the year-ago period. Further, the company said it continues to expect fiscal 2008 profit growth similar to that of previous year.
Earnings attributable to equity holders of the parent was €2.76 billion or €2.35 per share, much higher than €578 million or €0.49 per share in the prior-year quarter.
The company noted that third quarter earnings reflect the impact of the acquisition of 100% of Neuf Cegetel by SFR and the combination of Activision Blizzard, two strategic acquisitions announced in December 2007 and completed in 2008.
The results for the latest quarter included a gain of €2.32 billion on the dilution of Vivendi's interest in Vivendi Games, following the creation of Activision Blizzard, and integration costs of €189 million due to Neuf Cegetel and Activision Blizzard.
Excluding items, adjusted net income dropped to €625 million or €0.53 per share from €721 million or €0.62 per share in the year-ago quarter.
Revenues for the third quarter increased 20.1% to €6.51 billion from €5.42 billion in the same quarter last year. At constant currency, revenues improved by 22.8%.
The world's biggest record company Universal Music Group generated revenues of €1.09 billion, down 6.2% from a year ago. Revenues from Canal+ Group improved 5.6% to €1.14 billion, and Maroc Telecom Group's revenues grew 3.4% to €676 million. French mobile operator SFR's revenues rose 35.5% to €3.13 billion, while online and console game publisher, Activision Blizzard's third quarter revenues surged 119.9% to €475 million.
For the nine-month period of 2008, earnings attributable to equity holders of the parent was €3.98 billion or €3.42 per share, compared to €2.10 billion or €1.82 per share in the previous year period.
Adjusted net income fell to €2.08 billion or €1.78 per share from €2.25 billion or €1.94 per share in the prior-year period.
Revenues for the year-to-date period increased 13.6% to €17.78 billion from €15.64 billion in the preceding year period. At constant currency basis, revenues grew by 15.9%.
Looking ahead, Vivendi continues to expect 2008 profit growth similar to 2007 at constant perimeter, excluding Neuf Cegetel and Activision impacts. The company also confirmed that dividend growth will be similar to adjusted net income growth at constant perimeter.
The company also said it expects about €5.5 billion in credit lines available at the end of 2008 and would not face any significant debt repayment before 2012.
VIVEF.PK is currently trading at $24.90, up $1.40 or 5.96%. VIV.L closed Thursday's regular trading session at 2,025.65 pence, down 15.69 pence.
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