Vivendi Reports Higher Profit, Affirms Guidance

French media and telecoms conglomerate Vivendi on Friday posted first-half underlying earnings of 2.6 billion euros ($3.55 billion), up 10.6% compared with the same period last year.

It reiterated that it expected full-year adjusted net profit of at least 2.7 billion euros.

Vivendi said the rise in adjusted underlying earnings before interest, tax and amortization (EBITA) was underpinned by strong performances across the group plus a tax litigation settlement and sales agreement for real estate assets in Germany.

First-half EBITA was up 11.9% on a constant currency basis and first-half revenue rose to 10.223 billion euros from 9.61 billion euros a year ago.

Vivendi owns Universal Music Group, the world's biggest music company, French broadcaster Canal+ and a Vivendi Games business.

It also has majority stakes in SFR, the second-biggest mobile telecom operator in France, and Maroc Telecom, a leading mobile, fixed line and internet access operator in Morocco.

Universal Music's first-half EBITA fell 75 million euros to 220 million euros compared with last year. Vivendi said the division outperformed its rivals on an operating basis as it grew digital sales by around 50 percent on a constant currency basis in the first half.

Vivendi said the performance came amid a difficult recorded music market and unfavorable currency movements.

Canal+ EBITA rose to 340 million euros from 190 million in the first half last year, fuelled by a strong performance in French pay-television operations.

Vivendi's Games division saw EBITA surge 92 percent to 119 million euros, driven by the ongoing success of the "World of Warcraft" which released "The Burning Crusade" during the first quarter.