Vivendi Universal today announced a reduction in first quarter losses and affirmed that it is on track to achieve year-end targets.
The French media group, which is in the process of trying to sell its US entertainment assets (see
Party Is Over For Vivendi), said that net loss in the three months to March 31 fell from €815 million in 2001 to €319 million this year.
Operating income was up 39% from €607 million to €844 million, reflecting growth in Vivendi’s pay-TV and telecoms businesses. However, Universal Music continues to suffer from the general downturn in the recording market and sales fell by almost a fifth in the first quarter of 2003.
Partial recovery Vivendi posted a record French loss of €23.3 billion in 2002 (see Vivendi Left Reeling By Staggering Losses), the result of overspending during the dotcom boom. However, the company has acquired new-found stability under the stewardship of its current chief executive Jean-Rene Fourtou.
Although total revenues fell by 5% in the first quarter (see Vivendi Sees Revenues Slide In Q1), asset disposals have satisfied creditors and net debt now stands at €14 billion, compared to €35 billion in June 2002. The company hopes to reduce debts by a further €7 billion by the end of 2003 and is targeting a return to profit for the whole year.
Next week sees the deadline for preliminary offers as Vivendi Universal Entertainment goes up for sale. It emerged yesterday that John Malone’s Liberty Media had held talks with Vivendi about a possible bid for the assets, which include film studios, cable networks and theme parks in the US. VUE is valued at around the €12 billion mark.
