Vivendi says Q2 profit 'stable'

Vivendi's underlying net profit in the second quarter was little changed as higher earnings at its Canal+ pay-TV operations were offset by a decline in profitability at its SFR mobile telecoms business, an Associated Press report said.

Adjusted net income in the three months through June rose 0.3% to €757 million (US$1.1 billion) from €755 million a year earlier, Vivendi said in a statement.

Analysts monitor Vivendi's preferred measure of profitability, which is adjusted to exclude most nonrecurring and non-operating items. Net profit rose 12.3% to €667 million (US$975.22 million) from €594 million a year earlier including gains from the early redemption of bonds exchanged for Sogecable shares.

Fresh from two deals, including the purchase by SFR mobile-phone unit of internet service provider Neuf Cegetel and the merger of its games business with US video games group Activision to form a new company, Activision Blizzard, CEO Jean-Bernard Levy said he is 'very satisfied' with the results.

Both deals should lead to synergies, more than initially expected at Activision Blizzard, which was formed in July and is 54% controlled by Vivendi, the Associated Press report added.

Cash synergies from combining SFR and Neuf Cegetel will reach up to €300 million (US$438.63 million) per year from 2011, Vivendi said.

Looking ahead to the full year, Levy said he is 'expecting to deliver profit growth similar to 2007.'

The company reported last month that sales grew 15.1% to €6 billion (US$9.44 billion) in the second quarter, up from €5.2 billion a year earlier.