Company Announcements

  • Good results, driven by UMG and Canal+
  • Successful opening of UMG’s share capital
  • Revenues of €7,576 million, up 3.0% (-2.0% on a constant basis) compared to the first half of 2019
  • EBITA of €735 million, up 2.4% (-3.8% on a constant basis) compared to the first half of 2019
  • First half of 2020 marked by:
    • Very good results of the two main businesses:
      • Universal Music Group(UMG), driven by the growth in subscription services; and
      • Canal+ Group, which saw strong growth in its international operations
    • As anticipated, a decline in the revenuesof Havas Group and Vivendi Village, in the context of the public health crisis, the earnings impact of which was partially offset by lower expenses;
    • The sharp rebound in Editis' revenues (+ 38%) in June following two difficult months linked to the lockdown; and
    • The strong increase in Gameloft's revenues in the 2nd quarter (+6.5%)
  • Adjusted net income of €583 million, up 5.4%. This figure does not include the capital gain of €2.4 billion realized on the sale of 10% of UMG’s share capital and recognized in equity
  • Strong cash generation: CFFO of €338 million, up €302 million thanks to Canal+ Group and after significant content investments made by UMG
  • Financial strength: as of June 30, 2020, net debt has been reduced to €3.1 billion, compared to net debt of €4.1 billion at December 31, 2019, after a return to shareholders (dividends and share buybacks) of €1.4 billion, leading to shareowners’ equity of €17.4 billion as of June 30, 2020.

PARIS--(BUSINESS WIRE)--Jul. 30, 2020-- Regulatory News:

Vivendi (Paris:VIV):

First Half 2020 Key Figures

Change
year-on-year

Change at
constant
currency and
perimeter1
year-on-year


Revenues

€7,576 M

+3.0%

-2.0%


EBITA2,3

€735 M

+2.4%

-3.8%


EBIT3

€660 M

+2.3%

 

 


Earnings attributable to Vivendi SE shareowners3

€757 M

+45.7%

 


Adjusted net income2,3

€583 M

+5.4%

 

This press release contains unaudited condensed financial results established under IFRS, which were approved by Vivendi’s Management Board on July 27, 2020, and reviewed by the Vivendi Audit Committee on July 28, 2020, and by Vivendi’s Supervisory Board on July 30, 2020.

Vivendi's Supervisory Board met today under the chairmanship of Yannick Bolloré and reviewed the Group’s financial results for the half-year ended June 30, 2020, which were approved by the Management Board on July 27, 2020.

  • For the first half of 2020, revenueswere €7,576 million, up to 3.0% (-2.0% at constant currency and perimeter) compared to the first half of 2019. This increase was mainly due to the growth in revenues of Vivendi’s two main businesses, UMG and Canal+ Group, demonstrating the resilience of their subscription-related activities. The increase was partially offset by the slowdown in the revenues of Havas Group and Vivendi Village, which were affected by the COVID-19 pandemic.

    For the second quarter of 2020, affected by the lockdown measures taken in most countries, revenues were €3,706 million, down 4.8% (-7.9% at constant currency and perimeter) compared to the second quarter of 2019.
  • EBITA was €735 million, an increase of 2.4% compared to the first half of 2019 (-3.8% at constant currency and perimeter). The EBITA growth at Universal Music Group (+€81 million) and Canal+ Group (+€20 million) was notably offset by the EBITA slowdown at Havas Group (-€67 million).
  • Other financial charges and income were a net income of €417 million, compared to a net income of €91 million for the first half of 2019, representing a favorable change of €326 million. This amount included the revaluation of the interests in Spotify and Tencent Music for a net amount of €449 million, compared to €155 million for the same period in 20194.
  • Provision for income taxes reported to net income was a net charge of €299 million, compared to a net charge of €182 million for the same period in 2019. This change notably reflected the increase in the deferred tax charge related to the revaluation of the interests in Spotify and Tencent Music
    (-€110 million, compared to -€37 million for the first half of 2019).
  • Earnings attributable to non-controlling interests were €84 million, compared to €10 million for the first half of 2019. This increase mainly reflected the Tencent-led consortium’s share (€64 million) of Universal Music Group’s net earnings as from March 31, 2020.
  • Earnings attributable to Vivendi SE shareowners amounted to a profit of €757 million (or €0.66 per share - basic), compared to €520 million for the first half of 2019 (or €0.41 per share - basic), an increase of €237 million. This change mainly reflected the improvement in other financial charges and income (+€326 million) generated by the revaluation of the interests in Spotify and Tencent Music (+€294 million).
  • Adjusted net income was a profit of €583 million (or €0.51 per share - basic), compared to €554 million for the first half of 2019 (or €0.44 per share - basic), an increase of 5.4%.
  • The first half of 2020 was marked by strong cash generation (CFFO) of €338 million, compared to €36 million in the first half of 2019, thanks to Canal+ Group and after significant content investments by UMG.
  • Vivendi's balance sheet is particularly healthy. During the first half of 2020, Vivendi’s net financial debt fell by €1,007 million, from €4,064 million as of December 31, 2019 to €3,057 million as of June 30, 2020. This change notably includes a return to shareholders (dividends and share buybacks) of €1.4 billion, compared to €3.3 billion in 2019 (dividends and share buybacks), and the sale of 10% of UMG's share capital for €2.8 billion.

    The Group has significant financing capacity. As of June 30, 2020, the Group's credit lines (Vivendi SE and Havas SA) were available in the amount of €3.7 billion. As of June 30, 2020, the average “economic” term of the financial debt, calculated based on the assumption that available medium-term credit lines may be used to redeem the group’s shortest-term borrowings, is 5.0 years.

    With consolidated equity of €17.4 billion, the gearing rate (ratio of net debt to equity) was 17.5%.

Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, Vivendi has been able to demonstrate resilience and adapt in order to continue to best serve and entertain its customers, while reducing costs to preserve its margins. The business activities showed good resistance, in particular music and pay television. However, as anticipated when the first-quarter revenues were released, Havas Group, Vivendi Village and Editis were affected by the effects of the public health crisis. However, Editis has been enjoying a strong rebound in its business since the end of the lockdown in France.

Vivendi carefully analyzes the current and potential consequences of the crisis. It is difficult at this time to determine how it will impact its annual results. Businesses related to advertising and live performance are likely to be affected longer than others. Nevertheless, the Group remains confident in the resilience of its main businesses. It continues to make every effort to ensure the continuity of its activities and best serve and entertain its customers and audiences while complying with the authorities' guidelines in each country where it operates.

A review of the value of assets with an indefinite life, in particular the goodwill, was performed. Taking into account the performance achieved during the first half of the year by the business units,Vivendi did not identify any indications of a decrease in the recoverable amount compared to December 31, 2019, based on the sensitivity analyses performed.

SUCCESSFUL OPENING OF UMG’S SHARE CAPITAL

On March 31, 2020, Vivendi completed the sale of 10% of UMG’s share capital to a consortium led by Tencent, based on an enterprise value of €30 billion for 100% of UMG.

The consortium, led by Tencent and including Tencent Music Entertainment and other financial co-investors, has the option to acquire, on the same valuation basis, up to an additional 10% of the share capital of UMG until January 15, 2021. This transaction is complemented by a separate agreement allowing Tencent Music Entertainment to acquire a minority stake in the capital of the UMG subsidiary owning its Chinese activities.

Following the success of this important strategic agreement, Vivendi is pursuing the possible sale of additional minority interests in UMG with the assistance of several mandated banks. An IPO is scheduled for early 2023 at the latest.

ACQUISITION BY BANIJAY OF ENDEMOL SHINE GROUP

Banijay’s acquisition of Endemol Shine Group was finalized on July 3, 2020. This transaction creates the world leader in the production and distribution of audiovisual content, with annual revenues of around €2.7 billion (pro-forma 2019). Vivendi's support for this transaction (the Group owns 32.9% of the new entity) is part of its desire to build a world leader in culture, at the crossroads of the entertainment, media and communication industries.

Present in 22 countries, the new group has a portfolio of world-famous audiovisual programs, both streamed programs (Big Brother, Master Chef, The Wall, etc.) and scripted programs (Black Mirror, Humans, Tin Star,…). It also has an unrivaled distribution network, the two entities having complementary geographic locations.

SHARE BUYBACK PROGRAM

Between January 1 and March 6, 2020, Vivendi repurchased 23 million of its own shares, representing €559 million. Since April 20, 2020, the Group has repurchased 8.25 million of its own shares (i.e., 0.70% of its share capital), representing €160 million.

As of July 29 2020, Vivendi holds 35.2 million treasury shares (i.e., 2.97% of its share capital), of which 19.1 million shares designated for cancellation, 7.5 million shares allocated to covering performance share plans and 8.6 million allocated to covering employee shareholding plans.

COMMENTS ON THE BUSINESSES

Universal Music Group

For the first half of 2020, Universal Music Group’s (UMG) revenues were €3,459 million, up 3.5% at constant currency and perimeter compared to the first half of 2019 (+6.2% on an actual basis).

Recorded music revenues grew by 3.7% at constant currency and perimeter thanks to the growth in subscription and streaming revenues (+12.4%) and the receipt of a digital royalty claim. This increase was achieved despite the impact of the COVID-19 pandemic, which mainly affected the second quarter of 2020. Physical sales were down 22.4% compared to the first half of 2019, while download sales declined by 23.1%.

Recorded music best sellers for the first half of 2020 included new releases from The Weeknd, Justin Bieber, King & Prince, Eminem and Lil Baby, as well as continued sales from Billie Eilish and Post Malone.

UMG ended the first half of 2020 with seven of the Top 10 most consumed artists in the United States, according to Nielsen. In addition, UMG took a number of important steps in continuing to expand its global footprint, opening offices in Morocco and Israel, launching Def Jam Africa based in South Africa and Nigeria, and announcing key partnerships with Sugar (Italy), The Aristokrat Group (Africa), and Desi Melodies (India), among others.

Music publishing revenues grew by 21.2% at constant currency and perimeter compared to the first half of 2019, driven by increased subscription and streaming revenues, as well as the receipt of a digital royalty claim, separate from the one mentioned in recorded music.

For the first half of 2020, Universal Music Publishing Group (UMPG) complemented strong results with a number of notable signings around the world and across genres, including Taylor Swift, Kenny Chesney, Surfaces, Luke Combs, Marisa Monte and Meduza.

Merchandising and other revenues were down 41.4% at constant currency and perimeter compared to the first half of 2019, due to the impact of the COVID-19 pandemic on both touring and retail activity.

For the first half of 2020, UMG’s EBITA was €567 million, up 16.6% at constant currency and perimeter compared to the first half of 2019 (+18.0% on an actual basis) driven by revenue growth and cost control.

On July 22, 2020, UMG andSpotify announced a new, multi-year global license agreement that further aligns the companies’ efforts to foster groundbreaking new features providing value for artists and great experiences for music fans.

Canal+ Group

Canal+ Group’s revenues were €2,674 million, up 6.2% compared to the first half of 2019. At constant currency and perimeter, revenues slightly decreased (-1.6%).

Canal+ Group’s total subscriber portfolio (individual and collective) reached 20.4 million, compared to 17.1 million for the first half of 2019, including 8.6 million in mainland France.

Revenues from television operations in mainland France decreased slightly compared to the first half of 2019 (-2.1% at constant currency and perimeter), in a context marked by a downturn in the advertising market due to the COVID-19 pandemic.

Revenues from international operations rose sharply by 30.5% (+5.2% at constant currency and perimeter), thanks to the outstanding year-on-year growth in the number of subscribers (+3.2 million), which was driven both by organic growth and the integration of M7.

Studiocanal’s revenues declined by 30.5% compared to the same period in 2019, as theatrical film distribution was particularly affected by the COVID-19 pandemic.

Canal+ Group’s EBITA before restructuring charges was €329 million, compared to €236 million for the first half of 2019 (+16.2% at constant currency and perimeter). After restructuring charges, EBITA was €300 million, compared to €233 million for the same period in 2019 (+7.0% at constant currency and perimeter).

Canal+ Group continues to focus on the tracking of its expenditures and investments. The first half of 2020 confirmed Canal+ Group’s ambition to build, from a foundation of the best of cinema, sports and series, a gateway to the world’s leading applications and channels. Canal+ Group became the exclusive French distributor of the new Disney+ streaming service, available as part of Canal+ offers since April 7. Canal+ Group can further extend the reach of Disney+ through third-party distribution partners such as Internet Service Provider. Since June 1, Canal+ Group became the exclusive French distributor of beIN Sports channels to third-party providers across all platforms in mainland France, for the next five years.

Havas Group

As anticipated, the second quarter of 2020 was significantly impacted by the COVID-19 pandemic. Havas Group reacted swiftly to ensure the safety of its employees and continuity of business for all its clients around the world. This unprecedented public health crisis has affected the entire communications industry, as some advertisers were forced to postpone or cancel a number of campaigns. All divisions felt the impact, except for Havas Health & You, which continues to report positive performance thanks to the gains in market share achieved last year.

In these highly challenging times, for the first half of 2020, Havas Group reported revenues of €1,019 million, down 8.5%. Net revenues5 were €977 million, down 7.9% compared to the first half of 2019. Organic growth was -11.2% (-3.3% for the first quarter of 2020 and -18.3% for the second quarter); exchange rates had a positive impact of 0.9%, and acquisitions contributed 2.4%.

In terms of regions, at the end of June, North America delivered a satisfactory performance thanks to a resilient market and growth in health communications. Europe was severely affected by the pandemic. However, the agencies in the United Kingdom and Germany have proven more resistant than others. Both Asia-Pacific and Latin America recorded sharp declines.

For the first half of 2020, EBITA was €46 million, compared to €108 million for the same period in 2019. This change was due to the sharp downturns in activity reported by both the Media and Creative divisions.

A cost-reduction plan was implemented in both divisions in the early weeks of the crisis and, by the end of June, Havas Group had already absorbed nearly half the decline in revenues (before restructuring costs).

Editis

For the first half of 2020, Editis’ revenues were €262 million, down 15.1% at constant currency and perimeter compared to the first half of 2019. The COVID-19 pandemic impacted all of Editis' activities with the shut-down of most of the publishing sector's points of sale.

However, a strong market recovery, especially for Editis, which enjoyed a revenue increase of 38.0% in June, helped offset the negative impact of the lockdown period on sales. Editis’ revenues were down approximately 40% between March, April and May compared to the same period in 2019.

In addition, nine of Editis’ titles were among the Top 25 best-sellers in the first half of 2020, up 50% compared to the same period in 2019, including Au soleil redouté by Michel Bussi, La Vallée by Bernard Minier, Nos résiliences by Agnès Martin-Lugand or Fait maison by Cyril Lignac.

Editis also takes pride in the prestigious literary awards its authors have received, such as the “Grand Prix du polar des Lectrices de Elle” awarded to Tess Sharpe for Mon Territoire, the “Prix Maison de la Presse 2020” awarded to Caroline Laurent for Rivage de la colère, and the “Prix France Télévisions #MonLivreDeLété” awarded to François Durpaire for Histoire mondiale du bonheur.

Publishing houses such as the Trédaniel Group, L’Iconoclaste and Les Arènes chose Editis as their distribution and/or diffusion partner starting in 2021.

For the first half of 2020, impacted by the lockdown, Editis’ EBITA was -€21 million, compared to -€5 million for the same period in 2019 (pro forma).

Other businesses

For the second quarter of 2020, Gameloft’s revenues were €69 million, up 6.5% year-on-year, with sales on OTT platforms (Apple, Google, Microsoft, etc.) up by 16.3%. For the first half of 2020, revenues were €130 million, down 2.2% year-on-year. Gameloft’s sales on OTT platforms increased by 3.6% for the first half of 2020 and accounted for 76% of Gameloft’s total sales. Gameloft registered 1.6 million downloads per day across all platforms in the first half of 2020.

The lockdown measures imposed in Europe and Africa during the first half of 2020 had a significant impact on Vivendi Village. After a very strong start to the year, the live performance, venues and ticketing activities came to a virtual standstill in the second quarter of 2020. Cost-reduction measures have been put in place. In addition, live performance has launched innovative initiatives to maintain a connection with festival-goer communities: in London, Junction 2V, held on July 11 and 12, 2020, was an entirely virtual festival, and smaller festivals will be organized this summer.

In the first half of 2020, the revenues of New Initiatives, which brings together the Dailymotion and GVA entities, were €28 million, compared to €34 million in the first half of 2019.

In the first half of 2020, Dailymotion's audience for premium content grew by more than 35% compared to the first half of 2019. This growth was driven in particular by new partnerships such as those with CNN and Barstool Sports in the United States, Ooreka and Numerama in France, Daily Mail in the United Kingdom, Film Affinity in Spain, Bilan in Switzerland, Cocina al Natural in Mexico, News Nation in India and Amarin in Thailand. Dailymotion’s programmatic monetization platform also continues to grow with the integration of Amazon, following that of The Trade Desk, DV 360 and Verizon.

GVA, a telecoms operator in Africa, launched the sale of its very high-speed Internet offers in March 2020 in two new capitals, Abidjan (Côte d'Ivoire) and Kigali (Rwanda), strengthening its presence on the continent. In June 2020, after launching its Canalbox PREMIUM offer (50 Mb/s) and CanalboxPRO offers in Pointe Noire (Republic of the Congo) the previous year, GVA expanded its commercial offer by launching START (very high speed at 10 Mb/s).

CALENDAR

October 20, 2020: Q3 2020 revenues release June 22, 2021: annual shareholders meeting with the payment of the 2020 dividend under the same conditions as before.

For additional information, please refer to the “Financial Report and Unaudited Condensed Financial Statements for the half-year ended June 30, 2020” which will be released later online on Vivendi’s website ( www.vivendi.com ).

About Vivendi

Since 2014, Vivendi has been focused on building a world-class content, media and communications group with European roots. In content creation, Vivendi owns powerful, complementary assets in music (Universal Music Group), movies and series (Canal+ Group), publishing (Editis) and mobile games (Gameloft) which are the most popular forms of entertainment content in the world today. In the distribution market, Vivendi has acquired the Dailymotion platform and repositioned it to create a new digital showcase for its content. The Group has also joined forces with several telecom operators and platforms to maximize the reach of its distribution networks. In communications, through Havas. the Group possesses unique creative expertise in promoting free content and producing short formats, which are increasingly viewed on mobile devices. In addition, through Vivendi Village, the Group explores new forms of business in live entertainment, franchises and ticketing that are complementary to its core activities. Vivendi’s various businesses cohesively work together as an integrated industrial group to create greater value. www.vivendi.com

Important Disclaimers

Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements with respect Vivendi’s financial condition, results of operations, business, strategy, plans and outlook, including the impact of certain transactions and the payment of dividends and distribution, as well as share repurchases. Although Vivendi believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including, but not limited to, the risks related to antitrust and other regulatory approvals as well as any other approvals which may be required in connection with certain transactions and the risks described in the documents of the Group filed by Vivendi with the Autorité des marchés financiers (the French securities regulator), which are also available in English on Vivendi's website (www.vivendi.com). Investors and security holders may obtain a free copy of documents filed by Vivendi with the Autorité des marchés financiers at www.amf-france.org, or directly from Vivendi. Accordingly, we caution readers against relying on such forward-looking statements. These forward-looking statements are made as of the date of this press release. Vivendi disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, Vivendi has been able to demonstrate resilienceand adapt in order to continue to best serve and entertain its customers, while reducing coststo preserve its margins.The business activities showed good resistance, in particular music and pay television. However, as anticipated when the first-quarter revenues were released, Havas Group, Vivendi Village and Editis were affected by the effects of the public health crisis. However, Editis has been enjoying a strong rebound in its business since the end of the lockdown in France.

Vivendi carefully analyzes the current and potential consequences of the crisis. It is difficult at this time to determine how it will impact its annual results.Businesses related to advertising and live performance are likely to be affected longer than others. Nevertheless, the Group remains confident in the resilience of its main businesses. It continues to make every effort to ensure the continuity of its activities and best serve and entertain its customers and audiences while complying with the authorities' guidelines in each country where it operates.

A review of the value of assets with an indefinite life, in particular the goodwill, was performed. Taking into account the performance achieved during the first half of the year by the business units,Vivendi did not identify any indications of a decrease in the recoverable amount compared to December 31, 2019, based on the sensitivity analyses performed.

Unsponsored ADRs. Vivendi does not sponsor any American Depositary Receipt (ADR) facility in respect of its shares. Any ADR facility currently in existence is “unsponsored” and has no ties whatsoever to Vivendi. Vivendi disclaims any liability in respect of any such facility.

ANALYST CONFERENCE CALL

Speakers:
Arnaud de Puyfontaine
Chief Executive Officer
Hervé Philippe
Member of the Management Board and Chief Financial Officer

Date: July 30, 2020
6:15pm Paris time – 5:15pmLondon time – 12:15pmNew York time

Media invited on a listen-only basis.

Internet: The conference can be followed on the Internet at: www.vivendi.com/en/investment-analysts/ (audiocast)

Dial-in details for the conference call that will be held in English:
France +33 (0) 1 7099 4740
UK +44 (0) 20 3003 2666
USA +1 212 999 6659
Code Vivendi

The dial-in numbers for the conference call and replay, an audio webcast and the presentation slides will be available on our website www.vivendi.com.

APPENDIX I

VIVENDI

CONDENSED STATEMENT OF EARNINGS
(IFRS, unaudited)

 

Six months ended June 30,

 

% Change

 

2020

 

2019

 

REVENUES

7,576

 

7,353

 

+ 3.0%

Cost of revenues

(4,101)

 

(4,054)

 

 

Selling, general and administrative expenses excluding amortization of intangible assets acquired through business combinations

(2,629)

 

(2,543)

 

 

Income from operations*

846

 

756

 

+ 11.8%

Restructuring charges

(53)

 

(22)

 

 

Other operating charges and income

(58)

 

(16)

 

 

Adjusted earnings before interest and income taxes (EBITA)*

735

 

718

 

+ 2.4%

Amortization and depreciation of intangible assets acquired through business combinations

(75)

 

(73)

 

 

Other charges and income

-

 

-

 

 

EARNINGS BEFORE INTEREST AND INCOME TAXES (EBIT)

660

 

645

 

+ 2.3%

Income from equity affiliates - non-operational

64

 

(8)

 

 

 

 

 

 

 

 

Interest

(16)

 

(21)

 

 

Income from investments

15

 

5

 

 

Other financial charges and income

417

 

91

 

 

 

416

 

75

 

 

Earnings before provision for income taxes

1,140

 

712

 

+ 60.0%

Provision for income taxes

(299)

 

(182)

 

 

Earnings from continuing operations

841

 

530

 

+ 58.6%

Earnings from discontinued operations

-

 

-

 

 

Earnings

841

 

530

 

+ 58.6%

Non-controlling interests

(84)

 

(10)

 

 

EARNINGS ATTRIBUTABLE TO VIVENDI SE SHAREOWNERS

757

 

520

 

+ 45.7%

Earnings attributable to Vivendi SE shareowners per share - basic (in euros)

0.66

 

0.41

 

 

Earnings attributable to Vivendi SE shareowners per share - diluted (in euros)

0.65

 

0.41

 

 

 

 

 

 

 

 

Adjusted net income*

583

 

554

 

+ 5.4%

Adjusted net income per share - basic (in euros)*

0.51

 

0.44

 

 

Adjusted net income per share - diluted (in euros)*

0.50

 

0.43

 

 

In millions of euros, except per share amounts.

* non-GAAP measures.

The non-GAAP measures of “Income from operations”, “adjusted earnings before interest and income taxes (EBITA)” and “adjusted net income” should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance. Vivendi considers these to be relevant indicators of the group’s operating and financial performance. Vivendi Management uses income from operations, EBITA and adjusted net income for reporting, management and planning purposes because they exclude most non-recurring and non-operating items from the measurement of the business segments’ performances. Furthermore, as of June 30, 2020, in the context of the COVID-19 pandemic, Vivendi has not changed the definition of these indicators, which are therefore comparable to fiscal year 2019.

For any additional information, please refer to the “Financial Report for the half-year 2020“, which will be released online later on Vivendi’s website (www.vivendi.com).

APPENDIX I (Cont’d)

VIVENDI

CONDENSED STATEMENT OF EARNINGS
(IFRS, unaudited)

Reconciliation of earnings attributable to Vivendi SE shareowners to adjusted net income

 

Six months ended June 30,

(in millions of euros)

2020

 

2019

Earnings attributable to Vivendi SE shareowners (a)

757

 

520

Adjustments

 

 

 

Amortization and depreciation of intangible assets acquired through business combinations

75

 

73

Amortization of intangible assets related to equity affiliates

30

 

30

Other financial charges and income

(417)

 

(91)

Provision for income taxes on adjustments

106

 

34

Impact of adjustments on non-controlling interests

32

 

(12)

Adjusted net income

583

 

554

  1. As reported in the Condensed Statement of Earnings.

Adjusted Statement of Earnings

 

Six months ended June 30,

 

% Change

(in millions of euros)

2020

 

2019

 

Revenues

7,576

 

7,353

 

+ 3.0%

Income from operations

846

 

756

 

+ 11.8%

EBITA

735

 

718

 

+ 2.4%

Other charges and income

-

 

-

 

 

Income from equity affiliates - non-operational

94

 

22

 

 

Interest

(16)

 

(21)

 

 

Income from investments

15

 

5

 

 

Adjusted earnings from continuing operations before provision for income taxes

828

 

724

 

+ 14.4%

Provision for income taxes

(193)

 

(148)

 

 

Adjusted net income before non-controlling interests

635

 

576

 

 

Non-controlling interests

(52)

 

(22)

 

 

Adjusted net income

583

 

554

 

+ 5.4%

APPENDIX II

VIVENDI

REVENUES, INCOME FROM OPERATIONS AND EBITA BY BUSINESS SEGMENT
(IFRS, unaudited)

 

Six months ended June 30,

 

 

 

 

 

 

(in millions of euros)

2020

 

2019

 

% Change

 

% Change at
constant
currency

 

% Change at
constant
currency and
perimeter (a)

Revenues

 

 

 

 

 

 

 

 

 

Universal Music Group

3,459

 

3,258

 

+6.2%

 

+4.5%

 

+3.5%

Canal+ Group

2,674

 

2,518

 

+6.2%

 

+6.5%

 

-1.6%

Havas Group

1,019

 

1,114

 

-8.5%

 

-9.4%

 

-11.7%

Editis

262

 

260

 

+0.6%

 

+0.6%

 

-15.1%

Gameloft

130

 

133

 

-2.2%

 

-3.0%

 

-3.0%

Vivendi Village

26

 

66

 

-61.0%

 

-61.2%

 

-62.0%

New Initiatives

28

 

34

 

-18.3%

 

-18.3%

 

-18.3%

Elimination of intersegment transactions

(22)

 

(30)

 

 

 

 

 

 

Total Vivendi

7,576

 

7,353

 

+3.0%

 

+2.2%

 

-2.0%

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

Universal Music Group

597

 

501

 

+19.1%

 

+17.6%

 

+17.7%

Canal+ Group

334

 

235

 

+41.9%

 

+42.7%

 

+18.4%

Havas Group

61

 

121

 

-50.0%

 

-51.1%

 

-52.2%

Editis

(16)

 

6

 

na

 

na

 

na

Gameloft

(12)

 

(9)

 

-40.9%

 

-42.5%

 

-42.5%

Vivendi Village

(26)

 

(9)

 

x 2.9

 

x 2.9

 

x 2.1

New Initiatives

(34)

 

(31)

 

-8.5%

 

-8.5%

 

-8.5%

Corporate

(58)

 

(58)

 

-0.5%

 

-0.2%

 

-0.2%

Total Vivendi

846

 

756

 

+11.8%

 

+10.6%

 

+5.3%

 

 

 

 

 

 

 

 

 

 

EBITA

 

 

 

 

 

 

 

 

 

Universal Music Group

567

 

481

 

+18.0%

 

+16.5%

 

+16.6%

Canal+ Group

300

 

233

 

+28.7%

 

+29.4%

 

+7.0%

Havas Group

46

 

108

 

-57.1%

 

-58.3%

 

-59.3%

Editis

(21)

 

4

 

na

 

na

 

na

Gameloft

(14)

 

(11)

 

-30.9%

 

-34.6%

 

-34.6%

Vivendi Village

(27)

 

(9)

 

x 3.0

 

x 3.0

 

x 2.3

New Initiatives

(42)

 

(29)

 

-45.2%

 

-45.2%

 

-45.2%

Corporate

(74)

 

(59)

 

-24.8%

 

-24.4%

 

-24.4%

Total Vivendi

735

 

718

 

+2.4%

 

+1.3%

 

-3.8%

  1. Constant perimeter notably reflects the impacts of the acquisition of M7 by Canal+ Group (September 12, 2019), the acquisition of the remaining interest in Ingrooves Music Group, which was consolidated by Universal Music Group (March 15, 2019) and the acquisition of Editis (January 31, 2019).

     

APPENDIX II (Cont’d)

VIVENDI

QUARTERLY REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)

 

2020

 

 

 

 

(in millions of euros)

Three months ended

March 31,

 

Three months ended

June 30,

 

 

 

 

Revenues

 

 

 

 

 

 

 

Universal Music Group

1,769

 

1,690

 

 

 

 

Canal+ Group

1,372

 

1,302

 

 

 

 

Havas Group

524

 

495

 

 

 

 

Editis

116

 

146

 

 

 

 

Gameloft

61

 

69

 

 

 

 

Vivendi Village

23

 

3

 

 

 

 

New Initiatives

15

 

13

 

 

 

 

Elimination of intersegment transactions

(10)

 

(12)

 

 

 

 

Total Vivendi

3,870

 

3,706

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

(in millions of euros)

Three months ended

March 31,

 

Three months ended

June 30,

 

Three months ended

September 30,

 

Three months ended

December 31,

Revenues

 

 

 

 

 

 

 

Universal Music Group

1,502

 

1,756

 

1,800

 

2,101

Canal+ Group

1,252

 

1,266

 

1,285

 

1,465

Havas Group

525

 

589

 

567

 

698

Editis (a)

89

 

171

 

210

 

217

Gameloft

68

 

65

 

61

 

65

Vivendi Village

23

 

43

 

42

 

33

New Initiatives

15

 

19

 

16

 

20

Elimination of intersegment transactions

(15)

 

(15)

 

(11)

 

(24)

Total Vivendi

3,459

 

3,894

 

3,970

 

4,575

  • As a reminder, Vivendi has fully consolidated Editis since February 1, 2019.

APPENDIX III

VIVENDI

CONDENSED STATEMENT OF FINANCIAL POSITION
(IFRS, unaudited)

(in millions of euros)

June 30, 2020

(unaudited)

 

December 31,
2019

ASSETS

 

 

 

Goodwill

14,603

 

14,690

Non-current content assets

2,970

 

2,746

Other intangible assets

851

 

883

Property, plant and equipment

1,117

 

1,097

Rights-of-use relating to leases

1,190

 

1,245

Investments in equity affiliates

3,508

 

3,520

Non-current financial assets

3,162

 

2,263

Deferred tax assets

824

 

782

Non-current assets

28,225

 

27,226

 

 

 

 

Inventories

297

 

277

Current tax receivables

98

 

374

Current content assets

966

 

1,423

Trade accounts receivable and other

4,909

 

5,661

Current financial assets

328

 

255

Cash and cash equivalents

2,374

 

2,130

Current assets

8,972

 

10,120

 

 

 

 

TOTAL ASSETS

37,197

 

37,346

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Share capital

6,520

 

6,515

Additional paid-in capital

2,363

 

2,353

Treasury shares

(1,007)

 

(694)

Retained earnings and other

8,845

 

7,179

Vivendi SE shareowners' equity

16,721

 

15,353

Non-controlling interests

701

 

222

Total equity

17,422

 

15,575

 

 

 

 

Non-current provisions

1,028

 

1,127

Long-term borrowings and other financial liabilities

4,184

 

5,160

Deferred tax liabilities

1,158

 

1,037

Long-term lease liabilities

1,194

 

1,223

Other non-current liabilities

169

 

183

Non-current liabilities

7,733

 

8,730

 

 

 

 

Current provisions

575

 

494

Short-term borrowings and other financial liabilities

1,706

 

1,777

Trade accounts payable and other

9,354

 

10,494

Short-term lease liabilities

210

 

236

Current tax payables

197

 

40

Current liabilities

12,042

 

13,041

 

 

 

 

Total liabilities

19,775

 

21,771

 

 

 

 

TOTAL EQUITY AND LIABILITIES

37,197

 

37,346

1 Constant perimeter notably reflects the impacts of the acquisition of M7 by Canal+ Group (September 12, 2019), the acquisition of the remaining interest in Ingrooves Music Group, which was consolidated by Universal Music Group (effective as of March 15, 2019) and the acquisition of Editis (January 31, 2019).
2
Non-GAAP measures. As of June 30, 2020, in the context of the COVID-19 pandemic, Vivendi has not changed the definition of these indicators, which are therefore comparable to those for the fiscal year 2019.
3 A reconciliation of EBIT to EBITA and to income from operations, as well as a reconciliation of earnings attributable to Vivendi SA shareowners to adjusted net income, are presented in Appendix I.
4 As a reminder, in Vivendi’s Consolidated Financial Statements, in accordance with IFRS 10, the capital gain on the sale of 10% of UMG’s share capital, equal to the difference between the sale price of €2,838 million and the value of non-controlling interests in the Consolidated Financial Statements of €458 million, will be directly recorded as an increase in equity attributable to Vivendi SE shareowners for €2,380 million. In accordance with applicable accounting standards, the capital gain on the sale of 10% of UMG’s share capital was recorded in earnings in Vivendi’s Statutory Financial Statements.
5
Net revenues correspond to revenues less pass-through costs rebilled to customers.

Media
Paris
Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73

Investor Relations
Paris
Xavier Le Roy
+33 (0) 1 71 71 18 77
Nathalie Pellet
+33 (0)1 71 71 11 24
Delphine Maillet
+33 (0)1 71 71 17 20

Source: Vivendi

Media
Paris
Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73

Investor Relations
Paris
Xavier Le Roy
+33 (0) 1 71 71 18 77
Nathalie Pellet
+33 (0)1 71 71 11 24
Delphine Maillet
+33 (0)1 71 71 17 20