In its Q3 results, Vivendi Universal, revealed an upbeat outlook despite the gloomy ad climate which currently prevails. The company, Europe’s largest media group, has beaten Q3 forecasts and is on track to meet full year expectations.
Q3 fell in line with the market; organic earnings before interest, tax, depreciation and ammortisation (EBITDA) grew by 36% to €1,486 million and underlying revenues grew by 8% – just slightly below the company’s 10% target for the full year.
Vivendi achieved a 90% rise in EBITDA thanks largely to strong performances by its telecommunications and film divisions. EBITDA totalled €1.5 billion and revenues grew by 24% to reach €7.3 billion, including acquisitions.
A company target of 10% growth in revenue was achieved as was a 35% rise in organic EBITDA growth for 2001. Vivendi also said it was on track to achieve its forecast of EBITDA of €6 billion for the following year. Despite the slowdown in the economy, Vivendi has met targets for the year, an achievement which the company attributes to its global reach and the fact that 44% of its earnings are derived through subscriptions. Vivendi is one of few media companies to have not adjusted earnings forecasts in the wake of the attacks on the US.
The company has also seen success within its film divisions – movies such as American Pie II and Jurassic Park III have contributed to a 73% increase in like for like EBITDA – whilst earnings within its telecoms division rose 31% due to an increased share of the French mobile market.
As with most companies, however, losses in online grew from €58 million last year to €67 million although unlike its contemporaries, earnings at Vivendis publishing operations increased from €350 million to €402 million.
