Advanced Television

Vivendi H1: ‘Solid operating results’

July 28, 2023

For the first half of 2023, Vivendi’s revenues were €4.698 billion, an increase of 3.7 per cent (+3.2 per cent at constant currency and perimeter), mainly as a result of revenue growth at Canal+ Group (+€86 million) and Havas (+€61 million), as well as the performance of Gameloft (+€19 million).

Arnaud de Puyfontaine, Chief Executive Officer of Vivendi, commented: “Our Group achieved very good operating performances in the first half of the year, with an acceleration of our growth (+4.2 per cent) during the second quarter. These results demonstrate the strong resilience of our businesses and our ability to reinvent ourselves in the face of changes in our environment. All Canal+ Group activities contributed to revenue growth while maintaining stable profitability. Havas’s Health&You and Media divisions, in particular, excelled. For Prisma Media, the price of paper stabilised at a level that remained high in the first half of 2023, following a sharp increase in 2022. At the same time, the Group demonstrated strong development momentum. Gameloft demonstrates the full relevance of the strategic transformation of its business by also targeting the PC and console markets. At Vivendi Village, ticketing activities are experiencing strong growth, while music festivals have repositioned themselves well. There has also been a transformation at Dailymotion, which has radically revised its positioning by prioritising video and a young audience. On the strength of these results, we are continuing the year 2023 with confidence and vigilance.”

Yannick Bolloré, Chairman of the Supervisory Board of Vivendi, added: “Vivendi is steadfastly pursuing its internationalisation strategy and strengthening its position as a leading global player in culture and entertainment. We are entering the final phase of the combination process with the Lagardère group, which will give us a whole new dimension. Canal+ Group, with its investment in the Viu streaming platform in Asia and its equity interest in MultiChoice Group in Africa, is also contributing to the achievement of this strategic objective, as are the many targeted acquisitions made by Havas during this first half of the year. A new corporate culture is emerging within Vivendi, with the enhancement of the diversity of our talents, the richness of creation in all its forms, and the ability of our various businesses to work closely together. The financial situation of our Group and our long-term shareholder structure allow us to continue to implement our strategic plan and to calmly consider our future.”

After a 3.3 per cent increase for the first quarter of 2023, Vivendi’s revenues for the second quarter of 2023 were up 4.2 per cent (4.3 per cent at constant currency and perimeter) compared to the second quarter of 2022 to €2.408 billion.

EBITA was €444 million, an increase of 7.7 per cent (8.3 per cent at constant currency and perimeter). It included Vivendi’s share of the net earnings of Universal Music Group (UMG) for €39 million and Lagardère for €26 million (-€20 million for the first half of 2022).

For the first half of 2023, Canal+ Group’s revenues were €2.959 billion, up 3.0 per cent compared to the first half of 2022 (+2.3 per cent at constant currency and perimeter). All of the group’s businesses drove this growth.

Revenues from television operations in mainland France increased by 1.7 per cent at constant currency and perimeter compared to the first half of 2022.

Revenues from international operations increased by 2.2 per cent (+1.2 per cent at constant currency and perimeter), driven mainly by growth in the subscriber base.

Studiocanal’s revenues increased significantly by 21.7 per cent (+16.0 per cent at constant currency and perimeter), thanks to highly successful theatrical releases, both in France (more than 4 million admissions for Alibi.com 2; and 1.2 million admissions for All Your Faces) and internationally (close to A$25 million accumulated at the box-office for John Wick 4 in Australia and nearly NZ$ 3.8 million in New Zealand; £5.5 million for Evil Dead Rise at the box-office in the United Kingdom).

For the first half of 2023, Canal+ Group’s profitability remained stable compared to the first half of 2022, with EBITA of €337 million (a slight decrease of -1.5 per cent at constant currency and perimeter).

During the first half of 2023, Canal+ Group continued its development both in France and abroad:

  • At the end of April 2023, Canal+ Group announced the launch of its streaming platform in the Czech Republic and Slovakia, with a comprehensive offer of premium content;
  • On May 19th, 2023, at the Cannes Film Festival, Studiocanal announced the creation of a fund to support French female screenwriters and directors. Endowed with €1 million, the fund will support around ten projects over two years;
  • On May 22nd, 2023, Studiocanal announced its investment in the American production company The Picture Company, run by associate producers Andrew Rona and Alex Heineman. This five-year agreement demonstrates the solid relationship built on trust between Studiocanal and The Picture Company, who have been collaborating since 2014 on attractive projects for the global market, including the film Non-Stop starring Liam Neeson;
  • On June 21st, 2023, Canal+ Group and PCCW Limited announced the execution of a strategic partnership to accelerate the development of Viu, a leading streaming platform in Asia. Canal+ Group became a significant minority shareholder in Viu through a planned staggered investment of $300 million. The first payment of $200 million (€186 million) allowed Canal+ Group to acquire an initial 26.15 per cent ownership interest. Canal+ Group exercises a significant influence over Viu, which is accounted for under the equity method as from June 21, 2023. As of June 30, 2023, Canal+ Group had purchase options to increase its ownership interest in Viu to 51 per cent.
  • On June 23rd, 2023, Canal+ Group and Warner Bros. Discovery announced the formation of a partnership in French-speaking Switzerland. Canal+ Group’s offers in this territory are now enriched with HBO series and a selection of Max Originals films and TV shows. The new titles will be broadcast directly on the Canal+ channel, as well as across the myCANAL streaming platform; and
  • On July 20th, 2023, Canal+ Group announced that it acquired a 12 per cent interest in Viaplay Group, the leader in pay-TV in the Nordic countries.
  • In addition, Canal+ Group has increased its ownership interest in MultiChoice Group and holds 32.6 per cent of its share capital as of June 30, 2023.

 

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