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02-06-2004, 09:16 AM
http://www.hollywoodreporter.com/thr/business/article_display.jsp?vnu_content_id=2085245
Feb. 06, 2004
VU's Q4 hurt by weakness in media, entertainment
By Shiraz Sidhva
PARIS -- Media and telecommunications group Vivendi Universal on Thursday reported revenue declines of more than 50% for its fourth quarter and full-year 2003 because of major asset sales, currency effects and weaker results at various divisions.
Adjusting for these items, revenue was down slightly for both the quarter and full year. Overall results were dragged down by softness at the company's Universal Music Group and video games unit, while its entertainment unit, which it Vivendi Uni in the process of selling to General Electric's NBC, posted mixed results.
To fulfill French disclosure requirements, Vivendi Uni posted only revenue figures for the latest quarter Thursday, with a full earnings report to come in several weeks.
However, the company did say that its full-year earnings will show it meeting its previous financial targets, which include "very strong growth in operating income" for the year, "significant growth in cash flow from operations" and a "return to profit" excluding nonrecurring items and goodwill.
Vivendi Uni also preannounced that its net debt likely was less than €12 billion ($15.1 billion) as of Dec. 31, below its previous guidance of about €13 billion ($16.3 billion), thanks in part to strong cash-flow results at some units.
Vivendi Uni's fourth-quarter revenue came in at €7.2 billion ($9 billion), down 55%. For the full year, the conglomerate posted a 56.1% plunge in revenue to €25.4 billion ($31.8 billion).
Adjusting for divestitures, fourth-quarter sales fell 9%, or 2% at constant currency rates. Full-year 2003 revenue dropped 8%, or 3% when assuming constant currency, Vivendi Uni said.
The conglomerate's telecom operations continued to perform well and saw gains for both the latest quarter and the full year. However, the strong performance could not make up for big sales declines posted by the group's media businesses, which saw revenue for the year decrease 13%, or 6% at constant currency rates, to €15.7 billion ($19.7 billion).
The strongest performance within the media group came from Vivendi Universal Entertainment.
Fourth-quarter revenue fell 4% to €1.76 billion ($2.21 billion), but it was up 14% when adjusting for deals and currency fluctuations.
Full-year revenue was down 4% to €6 billion ($7.5 billion), or up 4% on an adjusted basis.
VUE's Universal Pictures division reported a 15% increase on a comparable basis for the year and a 32% increase for the fourth quarter, buoyed by the boxoffice and DVD success of "Bruce Almighty," "Seabiscuit," "2 Fast 2 Furious" and "Johnny English" and the strong theatrical performances of "Love Actually" and "American Wedding."
Revenue at Universal Television Group was up 6% and 20% for the year and quarter, respectively, reflecting stronger advertising sales at the USA Network and Sci Fi Channel networks and increased subscriber revenue.
Revenue at UMG, the world's largest music company, plunged 21% to €4.9 billion ($6.1 billion) for the year, or 12% assuming constant currencies, because of a weak global music market and a drop in the number of releases from global superstars. Fourth-quarter results were down 19% to €1.6 billion ($2 billion), or 11% on a constant currency basis.
The unit's album market share fell marginally to 28.1% in 2003 from 28.9% the year before. Major best sellers for the year included releases from 50 Cent -- No. 1 in the United States and more than 9 million copies shipped worldwide -- as well as Sheryl Crow, Toby Keith and Sting.
Revenue for Vivendi Uni's Canal Plus pay TV group fell 14% to €4.1 billion ($5.1 billion) in 2003 and 26% to €974 million ($1.2 billion) in the fourth quarter.
Results at Vivendi Universal Games continued their downward trend, falling 28% for the year to €571 million ($ 716.4 million), or 16% assuming constant currencies, with greater pricing pressures hampering profits. Fourth-quarter revenue declined 13%, or 1% assuming constant currencies.
Finally, revenue from the ailing Universal Parks and Resorts division inched up 3% on a comparable basis for 2003, with fourth-quarter results up 15%.
Thursday's revenue report was likely one of the last ones from Vivendi Uni before it sells VUE. The NBC-VUE merger is expected to close by midyear.
In Paris, Vivendi Uni shares closed up 1.7% on Thursday at 20.90. In New York, the company's American depository shares rose 1.9% to 26.21.
Feb. 06, 2004
VU's Q4 hurt by weakness in media, entertainment
By Shiraz Sidhva
PARIS -- Media and telecommunications group Vivendi Universal on Thursday reported revenue declines of more than 50% for its fourth quarter and full-year 2003 because of major asset sales, currency effects and weaker results at various divisions.
Adjusting for these items, revenue was down slightly for both the quarter and full year. Overall results were dragged down by softness at the company's Universal Music Group and video games unit, while its entertainment unit, which it Vivendi Uni in the process of selling to General Electric's NBC, posted mixed results.
To fulfill French disclosure requirements, Vivendi Uni posted only revenue figures for the latest quarter Thursday, with a full earnings report to come in several weeks.
However, the company did say that its full-year earnings will show it meeting its previous financial targets, which include "very strong growth in operating income" for the year, "significant growth in cash flow from operations" and a "return to profit" excluding nonrecurring items and goodwill.
Vivendi Uni also preannounced that its net debt likely was less than €12 billion ($15.1 billion) as of Dec. 31, below its previous guidance of about €13 billion ($16.3 billion), thanks in part to strong cash-flow results at some units.
Vivendi Uni's fourth-quarter revenue came in at €7.2 billion ($9 billion), down 55%. For the full year, the conglomerate posted a 56.1% plunge in revenue to €25.4 billion ($31.8 billion).
Adjusting for divestitures, fourth-quarter sales fell 9%, or 2% at constant currency rates. Full-year 2003 revenue dropped 8%, or 3% when assuming constant currency, Vivendi Uni said.
The conglomerate's telecom operations continued to perform well and saw gains for both the latest quarter and the full year. However, the strong performance could not make up for big sales declines posted by the group's media businesses, which saw revenue for the year decrease 13%, or 6% at constant currency rates, to €15.7 billion ($19.7 billion).
The strongest performance within the media group came from Vivendi Universal Entertainment.
Fourth-quarter revenue fell 4% to €1.76 billion ($2.21 billion), but it was up 14% when adjusting for deals and currency fluctuations.
Full-year revenue was down 4% to €6 billion ($7.5 billion), or up 4% on an adjusted basis.
VUE's Universal Pictures division reported a 15% increase on a comparable basis for the year and a 32% increase for the fourth quarter, buoyed by the boxoffice and DVD success of "Bruce Almighty," "Seabiscuit," "2 Fast 2 Furious" and "Johnny English" and the strong theatrical performances of "Love Actually" and "American Wedding."
Revenue at Universal Television Group was up 6% and 20% for the year and quarter, respectively, reflecting stronger advertising sales at the USA Network and Sci Fi Channel networks and increased subscriber revenue.
Revenue at UMG, the world's largest music company, plunged 21% to €4.9 billion ($6.1 billion) for the year, or 12% assuming constant currencies, because of a weak global music market and a drop in the number of releases from global superstars. Fourth-quarter results were down 19% to €1.6 billion ($2 billion), or 11% on a constant currency basis.
The unit's album market share fell marginally to 28.1% in 2003 from 28.9% the year before. Major best sellers for the year included releases from 50 Cent -- No. 1 in the United States and more than 9 million copies shipped worldwide -- as well as Sheryl Crow, Toby Keith and Sting.
Revenue for Vivendi Uni's Canal Plus pay TV group fell 14% to €4.1 billion ($5.1 billion) in 2003 and 26% to €974 million ($1.2 billion) in the fourth quarter.
Results at Vivendi Universal Games continued their downward trend, falling 28% for the year to €571 million ($ 716.4 million), or 16% assuming constant currencies, with greater pricing pressures hampering profits. Fourth-quarter revenue declined 13%, or 1% assuming constant currencies.
Finally, revenue from the ailing Universal Parks and Resorts division inched up 3% on a comparable basis for 2003, with fourth-quarter results up 15%.
Thursday's revenue report was likely one of the last ones from Vivendi Uni before it sells VUE. The NBC-VUE merger is expected to close by midyear.
In Paris, Vivendi Uni shares closed up 1.7% on Thursday at 20.90. In New York, the company's American depository shares rose 1.9% to 26.21.