Development at acquired writer Lagardere, pay-TV unit Canal+ Group, and promoting large Havas helped drive first-quarter income at French media and telecommunications conglomerate Vivendi, which can be shifting forward with learning a potential break up into 4 separate corporations.
Vivendi posted quarterly income of €4.28 billion ($4.59 billion) on Monday, a rise of 5.4 p.c over the year-ago interval when utilizing fixed currencies and specializing in the companies that the corporate owns now. The corporate, led by chairman Yannick Bolloré and CEO Arnaud de Puyfontaine, didn’t disclose its earnings earlier than curiosity, taxes and amortization (EBITA) on Monday.
Administration touted sturdy development of its core items, which has inspired it to think about a break up of the corporate since late final yr. “For the reason that distribution and itemizing of Common Music Group in 2021, Vivendi has endured a considerably excessive conglomerate low cost, considerably decreasing its valuation and thereby
limiting its potential to hold out exterior development transactions for its subsidiaries,” Vivendi stated on Monday. “Nonetheless, corporations like Canal+ Group, Havas and Lagardère are at present experiencing sturdy development in a global context marked by quite a few funding alternatives. With a view to absolutely unleash the event potential of all its actions, the administration board of Vivendi proposed to the supervisory board on Dec. 13, 2023, the potential of exploring the feasibility of a challenge to separate the corporate into a number of entities, every of which might be listed on the inventory market.”
This research is ongoing, with one thought in focus being a break up that might see Canal+, Havas, and Lagardere plus different publishing and distribution property change into three unbiased companies listed on the inventory market. “As soon as separated from these three entities, Vivendi would stay as is, publicly listed, sustaining its position of supporting the transformation and enlargement of its subsidiaries and persevering with to actively handle its investments,” the corporate stated on Monday.
Canal+ Group, which additionally homes movie manufacturing and distribution arm StudioCanal, recorded first-quarter income of €1.54 billion, up 4.3 p.c, or 2.6 p.c when assuming fixed foreign money charges and enterprise portfolios.
Vivendi’s gaming agency Gameloft posted quarterly income of €68 million, down 3.4 p.c in comparison with the primary quarter of 2023, or down 2.9 p.c assuming fixed currencies and property.