Adjusted Profit Down at Vivendi

PARIS: Vivendi’s Q1 2016 revenues were relatively stable at 2.5 billion euros ($2.8 billion), but adjusted net income dropped by more than 27 percent to 99 million euros ($113 million).

The lower adjusted net profit was related to an unfavorable tax charge following settlement of litigation with Liberty Media. Excluding that impact, adjusted net profit was up 3.1 percent to 140 million euros ($159 million).

At Canal+, revenues fell 3.1 percent to 1.3 billion euros ($1.5 billion). Total subscriptions were up 170,000 to 15.4 million, as gains in Africa offset a 183,000 decline in France, with the number of customers down to 8.3 billion. Of the French operations, the company said: “These channels are negatively impacted by a difficult economic environment, increased competition from national and international players, and the skyrocketing prices for certain broadcasting rights. A major transformation plan has been implemented over the past months to restore value to the offer and to tailor it for each customer segment. Efficiency and cost control measures have also been put into place. Furthermore, Canal+ Group and beIN Sports entered into an exclusive distribution agreement. This agreement, which requires the approval of the French Competition Authority, would be beneficial to beIN Sports, which would benefit from Canal+’s distribution strength, as well as to the customers of both companies who would have access to a comprehensive offering.”

Pay-TV revenues took a hit, but advertising revenues from the free-to-air channels were up 11.5 percent. STUDIOCANAL’s revenues fell in the period as well.