Media group Vivendi Universal yesterday issued first quarter operating results in line with market expectations, which show that the group is ahead of schedule to meet cost savings of €200 million by the year end.
Revenues grew by 10% to €5.9 million and EBITDA more than doubled to €900 million, pushed by a €293 million increase in telecoms and a €131 million increase in Universal Studios, according to an analysis by ABN Amro.
Vivendi is aiming to achieve a 10% growth in revenue (excluding Universal Film) and a 35% growth in earnings for 2001 and 2002. ABN believes that these targets are achievable.
The broker says that Vivendi has a relatively limited exposure to the current advertising downturn given that a large portion of its revenues are derived not from advertising but from subscriptions. However, there are still worries about ‘sluggish’ pay-TV subscriptions and music sales to factor in, says ABN.
Separately, the Financial Times Deutschland reports that Vivendi and RTL Group have agreed to buy the troubled worldwide sports marketing agency, ISMM Group (see International News). ISMM holds the broadcasting rights to non-European sporting events, including the soccer World Cup.
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