Telcos boost Vivendi 1H

European media conglomerate Vivendi has upped its full-year forecasts, after a strong performance by its telecoms and TV businesses boosted 1H profits 4%.
 
Group profit hit €1.5 billion during 1H as revenues increased 6.1% to €13.9 billion on the back of increased sales at SFR, Maroc Telecom, and Brazilian cellco GVT, the results of which Vivendi has included from end-April after acquiring the operator late 2009.
 
The figures prompted Vivendi to predict full-year profits will beat the €2.59 billion made in 2009, the BBC reported, as CEO Jean-Bernard Lévy declared the firm is “back to growth.”
 
French telco SFR contributed €6.2 billion towards group revenues during the period - up 1.8% on 1H09 – as growing fixed and mobile subscriptions offset lower income caused by a regulator-imposed price cut.
 
Mobile EBITDA grew 1.7% to €1.7 billion, with fixed EBITDA up 33.3% to €408 million.
 
The firm says SFR’s full-year EBITDA should see double-digit growth over 2009, in updated guidance.
 
Lévy said his long-term goal to buy Vodafone’s 44% stake in SFR remains uncertain, because the carrier hasn’t expressed any interest in selling, Bloomberg reported.
 
A buoyant Moroccan market saw Vivendi’s local carrier Maroc Telecom grow sales 5.9% to €1.3 billion during 1H10, while Brazilian subsidiary GVT generated revenues of €444 million and EBITDA of €184 million, as voice and broadband sales grew 32.3% and 73% respectively.
 
“GVT is, for this year and the future, a strong growth driver and we have increased its investment program,” Lévy said.
 
Canal+, the firm’s TV business, recorded modest 3.1% sales growth, generating €2.3 billion in 1H10. Vivendi said subscriptions grew 356,000 in France, Africa and other overseas territories, with ARPU up €1.90 to €46.30 by end-June.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.