Vivendi Reports 30% Q3 Earnings Gain; Revenues Rise 8%30 Oct, 2001 By: Hive News
Vivendi Universal on Tuesdayreported that core earnings in its media and communications businessesgrew 30% in the third quarter, according to the Associated Press in Paris, boosted by strong performances intelecommunications and movies.
EBITDA (earnings before interest, taxes, depreciation and amortization) were 1.49 billion euros ($1.35 billion), compared to $1.04 billion in the same period of 2000. The year-ago figures were adjusted to account for several transactions, mainly the three-way merger of Vivendi, Seagram Co. and Canal Plus, that createdVivendi Universal, the AP report said.
Revenues grew 8% in the third quarter to $6.63 billion from $6.13 billion in the comparable period in 2000.
The company, which is still adjusting its reporting practices from French to American standards, did not provide net earnings for the period, the AP said. The results also exclude Vivendi's water and waste treatment businesses as well as the liquor businesses the company acquired with its purchase of Seagram Co., Universal's former parent company.
Film and television results were boosted by strong growth at Universal Studios, the AP said. EBITDA in the film division grew 73% to $298 million from $172.9 in the same period last year, on strong releases such as The Mummy Returns and Jurassic Park III.
Telecommunications also reported strong EBITDA growth, up 31% in the third quarter.
Vivendi said that a revenue decline at Universal Music Group was caused by a drop in sales in several major global markets. The music unit posted a 6% revenue decline to $1.33 billion.
Internet activities registered a $61 million loss in the third quarter. The AP said the company plans to divest many loss-making Web sites as part of a disposal of its trade press publications.