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Vivendi Q2 Profit Triples On Hefty Gains From Divestitures(dpa-AFX International Compact Via Acquire Media NewsEdge) PARIS (dpa-AFX) - French media giant Vivendi SA (VIV.L, VIVEF.PK), which is divesting telecom assets to focus on media, reported Thursday a profit for the second quarter that tripled from last year, reflecting a sharply higher earnings from discontinued operations. At constant perimeter and currency, revenues edged up 0.9 percent. Vivendi also confirmed earlier in the day that it has received two binding offers for its Global Village Telecom or GVT unit in Brazil, from Italian phone carrier Telecom Italia S.p.A (TI, TIAOF.PK) and Spanish telecom operator Telefonica SA (TDE.L, TEF). Madrid-based Telefonica's new bid for GVT earlier in the day is valued at 7.45 billion euros, sweetened from its 6.7 billion euros offer of August 4. Telefonica new bid came after Telecom Italia made a cash-and-share offer worth 7 billion euros, or $9.2 billion for the GVT unit earlier in the day. However, the Vivendi's Supervisory Board has decided to enter into exclusive negotiations with Telefonica as its offer expires on Friday. The divestment from GVT would allow selling the last telecom company wholly-owned by Vivendi after the disposals of Maroc Telecom and SFR. Vivendi reported earnings attributable to shareowners of 1.48 billion euros or 1.10 euros per share for the second quarter, sharply higher than 501 million euros or 0.38 euros per share in the prior-year quarter. The latest quarter's results included earnings from discontinued operations of 1.41 billion euros, compared to 496 million euros last year. The company noted that SFR along with Maroc Telecom group and Activision Blizzard have been reported as discontinued operations. Earnings from continuing operations declined 29.8 percent to 166 million euros from 236 million euros in the year-ago quarter. Excluded certain items, adjusted net income was 194 million euros, compared to 225 million euros last year. Earnings before interest, tax and amortization or EBITA declined 6.9 percent to 358 million euros on a reported basis, while it edged up 0.1 percent at constant perimeter and currency. Revenues for the quarter declined 3.3 percent to 2.82 billion euros from 2.92 billion euros in the same quarter last year. Revenues edged up 0.9 percent on a constant currency basis. In the quarter, Canal+ Group's revenues increased 2.8 percent to 1.35 billion euros, and its subscriptions grew year-on-year to a total of 15.1 million subscriptions. Meanwhile, Universal Music Group's revenues declined 11.0 percent to 1.02 billion euros, and GVT revenues also decreased 2.6 percent to 434 million euros from last year. In Paris, Vivendi shares are currently trading at 20.16 euros, down 0.03 euros or 0.15% on a volume of 3.19 million shares. Copyright RTT News/dpa-AFX |