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Vivendi’s half-year profit jumps thanks to Universal and Canal + | Photo credits: Vivendi
PARIS, July 28 (Reuters) – French media group Vivendi on Wednesday reported a 49% increase in first-half operating profit, thanks to Universal Music Group and its Canal + pay-TV business.
Vivendi is planning to part ways with Universal, the world’s leading music label and the record label for globally successful artists like Lady Gaga and Taylor Swift. The proposed demerger provides for the listing of UMG in Amsterdam and the distribution of 60% of the label’s shares to Vivendi shareholders.
The group and Vincent Bolloré, its main shareholder, intend to take advantage of the rebound in the recording industry, linked to revenues from streaming provided by music platforms such as the market leader Spotify.
Universal’s spin-off and IPO are scheduled for September 21, Vivendi confirmed. Universal will host a Capital Market Day for analysts and investors on August 25, Vivendi said in a statement.
The adjusted operating profit (EBITA) of the French group reached 1.07 billion euros, Universal representing three quarters of this total with an EBITA up 38% compared to the previous year.
Adjusted operating income after Canal + restructuring charges increased 10% to € 330 million.
Group sales for the first half of the year increased by around 12%, at constant exchange rates and excluding acquisitions, to reach 8.22 billion euros.
Vivendi has not provided financial targets for the year as a whole. (Report Mathieu Rosemain, French version Laura Marchioro, edited by Jean-Michel Bélot)
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