Misfortune continues to stalk the corridors at Vivendi Universal, which yesterday reported a fall in sales for the first quarter of 2003.
The once mighty media group recorded the biggest annual loss in French corporate history last year (see
Vivendi Left Reeling By Staggering Losses) and has been forced to sell assets in order to redress massive debts.
However, matters improved little in the three months to the end of March with total consolidated revenues down to €6.2 billion from €6.5 in the same period last year.
Vivendi blamed this larger than anticipated fall on a dip in the value of the dollar against the euro but there were other factors including the downturn in the record industry which resulted in a 19% sales decline at Universal Music.
There were better results from Vivendi Universal Entertainment, the cluster of American film, television and leisure interests. Revenues increased by 5% year on year but Vivendi chief executive Jean-Rene Fourtou has vowed to offload the US entertainment assets to combat the company’s debt, which now stands at €10.8 billion (see Party Is Over For Vivendi).
The focus will now be on domestic businesses and investors were encouraged by the performance of French telecoms company Cegetel, which recorded a 4% rise in revenue to €1.8 billion. The satellite broadcaster Canal Plus fared less well with income down 3% at €1.2 billion.
