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Earnings

Vivendi Banks On Games As Mobile Music Goes Quiet

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Video games are shining brighter as the jewel in Vivendi’s crown. The French conglomerate is expecting Activision (NSDQ: ATVI) Blizzard to contribute a boat-load more to this year’s group profit, when two key titles trickle farther down. Its 2009 earnings, out today, show…

Call Of Duty: Modern Warfare 2 shifted $1 billion worth in copies in the U.S. and Europe alone.

World Of Warcraft has 11.5 million subscribers paying about £8.99/€12.99 a month - though this is the same number that’s been quoted for about a year now.

Activision Blizzard 2009 revenue of €3 billion is 45.2 percent up from the €2.09 billion Vivendi (EPA: VIV) opened with when Activision and Blizzard merged a year ago, regardless of the industry-wide dip in music game sales like its own Guitar Hero. It’s now forecasting its €484 million 2009 EBITA to reach €600 million in 2010.

Vivendi is putting ActiBlizz ahead of its other divisions but, across the group, EBITA is up 8.8 percent to €5.4 billion on 6.9 percent better revenue of €27.1 billion…

Universal Music Group: Revenue down 6.2 percent to €4.63 billion and, despite 8.4 percent more digital income. “Very strong growth in online sales tempered by softening demand for mobile products in the United States and Japan.” EBITA down 14.7 percent to €580 million.

NBC Universal: Vivendi’s share of income from the JV fell from €255 million in 2008 to €178 million, but late last year it agreed to sell its 20 percent stake to GE.

SFR: Revenue up 7.6 percent to €12.4 billion at the French telco on 33 percent more mobile internet income due to data offers. 670,000 iPhones sold April-December.

Canal+: Revenue stable at €4.5 billion at the TV operator. Churn still high at 12.3 percent, but reduced, and average-customer revenue is growing thanks to multi-platform delivery.

Vivendi is setting aside €550 million to pay estimated damages in a U.S. case brought by shareholders who say they were given misleading information by the group: “We will continue to vigorously defend the company and its current shareholders against the unfounded claims we and they are suffering in light of the class action proceedings in the United States over the last years.”

Release | Slides

Mar 1, 2010 7:13 AM ET

Call Of Duty: Modern Warfare 2


Posted In: Entertainment, Games, Money, Earnings, Companies, Vivendi, Universal Music Group

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