Vivendi: Strong Revenue Growth in the First Quarter of 2024
- First quarter 2024 revenues reached €4.275 billion, up 5.4% at constant currency and perimeter compared to the same period of 2023
- Canal+ Group, Lagardère and Havas all published strong revenue increases in the first quarter of 2024 compared to the same period of 2023
- Update on the study of the feasibility of the split project
PARIS--(BUSINESS WIRE)--Apr. 29, 2024--
The organic growth of 5.4% compared to the first quarter of 2023 was notably driven by the significant contribution of Lagardère, validating the relevance of the transaction with this group last November and our confidence in the potential of its activities. Canal+ Group and Havas also delivered solid performances, with increases in reported revenues of 4.3% and 6.2%, respectively, over the same period.
Canal+ Group stepped up the deployment of its international presence by increasing its stakes in Viu and Viaplay, and by launching a public tender offer with the aim of potentially acquiring all the issued shares that it does not already own of MultiChoice Group, the African leader in pay-TV in English-speaking and Portuguese-speaking countries.
In the first quarter of 2024, Havas confirmed its operating momentum, with net revenues 1 up 4.8% (+2.0% organically), one of the strongest growth rates in the communications sector. The company pursued its policy of targeted acquisitions, with three new companies acquired since the beginning of the year.
The feasibility study for the split project announced on
We approach 2024 with confidence, despite a tense macroeconomic context”.
Update on the study of the feasibility of the split project
Background information. Since the distribution and listing of Universal Music Group in 2021,
Since that date, the study of the feasibility of the split project has been ongoing.
A hypothesis currently being examined is a partial split of
If the Supervisory Board authorizes the split project to proceed in this way, it must first be subjected, in due time, to consultation with the employee representative bodies of the entities concerned. At the end of this consultation process, it may be necessary to seek a number of regulatory authorizations, approvals from bondholders and other Group lenders, and then a vote at an Extraordinary General Shareholders’ Meeting which could be convened at the date of the Annual General Shareholders’ Meeting scheduled for
For the first quarter of 2024, Vivendi’s revenues were €4,275 million, compared to €2,290 million for the first quarter of 2023, i.e., an increase of 86.6%. This increase was mainly driven by the consolidation of Lagardère as well as revenue growth at Canal+ Group and Havas.
At constant currency and perimeter3, Vivendi’s revenues grew by 5.4%, compared to the first quarter of 2023, mainly due to the performance of Lagardère (+8.9%), Canal+ Group (+2.6%) and Havas (+3.4%).
Share buyback program
The total number of shares repurchased by
Comments on the activities of the Group's businesses
Canal+ Group: revenues increased by 5.1% in mainland
For the first quarter of 2024, Canal+ Group’s revenues were €1,542 million, up 4.3% compared to the first quarter of 2023 (+2.6% at constant currency and perimeter).
Revenues from television operations in mainland
Revenues from international operations increased by 5.8% year-on-year (+4.1% at constant currency and perimeter), due to continued growth in the subscriber base, particularly in
Studiocanal’s revenues declined compared to the first quarter of 2023, which had benefited from a strong theatrical release schedule, including Alibi.com 2 in
These results were supported by major developments across several strategic pillars of the Group.
On the international development pillar:
-
on
February 9, 2024 , following a successful recapitalization, Canal+ Group increased its interest in Viaplay, the Scandinavian leader in pay-TV and streaming, to 29.33%, confirming its position as the largest shareholder; -
on
February 26, 2024 , Canal+ Group announced that it took another step in its ambition to makeAsia its next growth driver by increasing its stake in Viu to 30%, in accordance with the terms of the transaction announced onJune 21, 2023 ; -
on
March 22, 2024 , Canal+ Group announced that it had acquired an interest in Senegalese production company Marodi TV, one of the major players in the creation of series inAfrica . This investment strengthens the group’s presence and reaffirms its commitment to supporting local talent and audiovisual production on the African continent; and
-
on
April 8, 2024 , Canal+ Group and MultiChoice Group published the joint announcement of the terms of the proposed mandatory offer by Canal+ Group in respect of MultiChoice Group. Following extensive engagement between senior representatives of Canal+ Group and MultiChoice Group, and in line with the timeline agreed with theTakeover Regulation Panel (TRP), Canal+ Group has finalized the key terms of its mandatory offer. Canal+ Group made a mandatory offer to acquire all the issued shares of MultiChoice Group not already owned by the group at a purchase price ofZAR125.00 per share, payable in cash.
On the content pillar:
-
on
January 6, 2024 , Canal+ Group and Warner Bros. Discovery announced the renewal of their exclusive agreement for Warner Bros. Pictures films. This multi-year agreement will allow Canal+ Group to continue to offer its subscribers exclusive access to Warner Bros. Pictures films, just six months after their theater release inFrance ; -
on
January 31, 2024 , Canal+ Group completed the acquisition of the OCS pay-TV package andOrange Studio , the film and series co-production subsidiary, from its historical partner Orange, following approval by theFrench Competition Authority ; -
following the creation of its first genre label focusing on French and international content and led by
Jed Benedict ,Studiocanal announced onMarch 18, 2024 , a partnership focused on genre films with French production company WTFilms, covering the development, production and distribution of French language and European content with global appeal; and -
on
March 22, 2024 , Canal+ Group acquired exclusive broadcast rights to all matches ofUEFA Champions League ,UEFA Youth League and UEFA Super Cup matches for the 2024/2025, 2025/2026 and 2026/2027 seasons inPoland .
Lagardère4 Group: slight revenue increase in Publishing against an historically high comparison basis and continued double-digit revenue growth in Travel Retail (18.7% as published).
For the first quarter of 2024, Lagardère group’s revenue totaled €1,883 million, up 12.4% as published and up 8.9% at constant currency and perimeter compared to the first quarter of 2023.
For the first quarter of 2024, Lagardère Publishing posted an increase in revenue compared to an historically high basis, to €576 million, up 1.1% as published and up 0.8% at constant exchange rates and perimeter compared to the first quarter of 2023.
-
In
France , the division recorded a 4.8% fall in revenue, mainly due to a decline in revenue forIllustrated Books in the comics/manga segment, the absence of an equivalent to the Asterix and Obelix: The Middle Kingdom album and softer activity in Practical Guides. However, the Children and Young Adult segment continued to advance, driven by the publication of the newSarah Rivens novel, Lakestone.General Literature was stable compared with first-quarter 2023, which had benefited from bestsellers byPrince Harry andPierre Lemaitre , thanks to the publication of two newGuillaume Musso titles inMarch 2024 – Quelqu'un d'autre in hardcover and Angélique in paperback. -
In the
United Kingdom , revenue rose by 4.8% thanks to the performance of Adult Trade, driven in particular by the continued success of backlist titles, including the first two volumes of The Empyrean trilogy byRebecca Yarros , dynamic sales ofMatthew Perry's autobiography in audio format, and a fine frontlist performance with the successful launch ofAli Hazelwood's Bride. Business was also buoyant on international markets, particularlyAustralia , where backlist sales registered an increase. -
In
the United States , revenue rose by 3.4%, driven by a good start to the year at Hachette Audio on the back of higher digital audio revenue, and by strong momentum in science fiction sales at Orbit. In addition, Oath and Honor byLiz Cheney has been a big hit at Little, Brown Adult. -
In
Spain /Latin America , revenue was virtually stable (down 1.0%), reflecting a slowdown in Adult Trade inSpain and softer Children and Young Adult sales than in first-quarter 2023.Mexico , on the other hand, has continued to advance since the start of the year. -
Revenue from Partworks rose by 1.9%, thanks to a larger and promising launch campaign in 2024, particularly in
Germany ,Italy andSpain .
E-books accounted for 8.5% of total Lagardère Publishing revenue infirst-quarter 2024, versus 8.2% infirst-quarter 2023, while digital audiobooks represented 6.7% of revenue compared to 5.2% in the same year-ago period.
With global air traffic having returned to normal levels, Lagardère Travel Retail once again achieved double-digit revenue growth for the first quarter of 2024. Revenue totaled €1,242 million, up 18.7% as reported and up 13.6% at constant exchange rate and perimeter compared to the first quarter of 2023.
-
In
France , business for the division grew by 16.2%. -
The EMEA region (excluding
France ) saw a strong 22.5% increase in revenue, driven by all the countries in the region on the back of the return of air traffic to pre-Covid levels, and led by theMiddle East (up 109.9%),Italy (up 23.8%) andRomania (up 29.0%). -
Revenue in the
Americas rose by 7.8%, thanks to dynamic growth inthe United States (up 6.4%) andCanada (up 14.5%). -
The
Asia-Pacific region recorded a decline of 15.5%, which was particularly marked inNorth Asia (down 20.3%) due to the economic slowdown inChina and consequent contraction in Chinese consumer spending.
For the first quarter of 2024, revenue of the other activities totalled €65 million, up 10.2% as published and stable at constant exchange rate and perimeter compared to the first quarter of 2023. Business levels remained stable thanks to a very good performance by Lagardère
Havas: one of the best growth rates in its sector (net revenues1 up +4.8%and +2.0% organically), and continued acquisitions
After posting one of the strongest performances in the communications sector in 2023, Havas continued its growth trajectory with a 6.2% increase in revenues in the first quarter of 2024 compared to the first quarter of 2023, driven by a +3.4% growth at constant currency and perimeter and the impact of acquisitions (+3.7%), despite currency effects (-0.9%).
Net revenues1 amounted to €617 million, up 4.8% compared to the first quarter of 2023 (+2.0% on an organic basis). Acquisitions contributed to an increase of 3.8% and included income from Uncommon, Eprofesionnal, Shortcut and Ledger Bennett. Currency effects had a negative impact of 1.0%, mainly due to the evolution of the US dollar and the Argentine peso.
In
Havas is experiencing very good commercial momentum, as illustrated by the wins of Fedex on the creative side at the European level, the media budget of the
After two record years, Havas has continued its strong acquisition momentum since the beginning of the year with the integration of three new agencies. Two agencies are based in the
These acquisitions are in line with the group's "customer-centric" approach, which aims to diversify the solutions offered to clients in terms of digital and data.
Havas continues to integrate artificial intelligence and new technologies at the heart of all its expertise, in line with its motto "Be better with AI. Be better than AI" to design, produce, and deliver personalized content and experiences at scale.
For the first quarter of 2024, Prisma Media’s revenues were €71 million, up 0.7 % at constant currency and perimeter compared to the first quarter of 2023.
The latest audience results demonstrate that
Télé-Loisirs (22.1 million readers) remains the top magazine brand. Capital is the leading economic brand, consulted by over 10 million people (up by 17% compared to the first quarter of 2023) and reaching more than one out of five upper socio-professional (CSP+) individuals per month. With the acquisition of PasseportSanté in
At the end of
Prisma Media’s social media audiences continued to grow with the number of followers on TikTok doubling compared to the first quarter of 2023 to reach 4.3 million followers.
For the first quarter of 2024,
For the first quarter of 2024,
On
For the first quarter of 2024, Vivendi Village’s revenues were €31 million, practically stable in organic terms compared to the first quarter of 2023.
On
The
New Initiatives: double-digit growth
For the first quarter of 2024, New Initiatives, which mainly brings together
In the first quarter of 2024,
This increase was driven by direct ad revenues, which were up by 85% compared to the same period of 2023, mainly in EMEA and the
GVA,
GVA is now present in thirteen cities in eight countries in sub-Saharan Africa (
Very high-speed Internet access offers are aimed at the residential and professional markets, under the "CanalBox" brand.
At the end of
Shareholders' Meeting
About
Since 2014,
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy, plans and outlook, including the impact of certain transactions, such as the contemplated split and listing projects and any related transactions, and the payment of dividends and distributions, as well as share repurchases. Although
Unsponsored ADRs.
APPENDIX I
REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)
|
Three months ended |
|
|
|
|
|
|
||
(in millions of euros) |
2024 |
|
2023 |
|
% Change |
|
% Change
|
|
% Change
(a) |
Revenues |
|
|
|
|
|
|
|
|
|
Canal+ Group |
1,542 |
|
1,478 |
|
+4.3% |
|
+3.6% |
|
+2.6% |
Lagardère (a) |
1,883 |
|
na |
|
na |
|
na |
|
+8.9% |
Havas |
649 |
|
611 |
|
+6.2% |
|
+7.1% |
|
+3.4% |
of which net revenues (b) |
617 |
|
588 |
|
+4.8% |
|
+5.8% |
|
+2.0% |
|
71 |
|
73 |
|
-3.5% |
|
-3.5% |
|
+0.7% |
|
68 |
|
71 |
|
-3.4% |
|
-2.9% |
|
-2.9% |
|
31 |
|
33 |
|
-6.7% |
|
-7.0% |
|
-0.6% |
New Initiatives |
42 |
|
31 |
|
+35.7% |
|
+35.7% |
|
+31.5% |
Generosity and solidarity |
- |
|
1 |
|
|
|
|
|
|
Elimination of intersegment transactions |
(11) |
|
(8) |
|
|
|
|
|
|
Total |
4,275 |
|
2,290 |
|
+86.6% |
|
+86.3% |
|
+5.4% |
|
|
|
|
|
|
|
|
|
|
na: not applicable.
-
Constant perimeter notably reflects the impacts of the combination with Lagardère, which has been fully consolidated from
December 1, 2023 . -
Net revenues, a non-GAAP measure, relates to Havas’s revenues less pass-through cost rebilled to customers.
APPENDIX II
DETAIL OF REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)
Canal+ Group
|
Three months ended |
|
|
|
|
|
|
||
(in millions of euros) |
2024 |
|
2023 |
|
% Change |
|
% Change at constant currency |
|
% Change at
|
International TV |
620 |
|
585 |
|
+5.8% |
|
+4.1% |
|
+4.1% |
TV in mainland |
833 |
|
793 |
|
+5.1% |
|
+5.1% |
|
+3.5% |
|
89 |
|
100 |
|
-10.8% |
|
-11.5% |
|
-13.3% |
Revenues |
1,542 |
|
1,478 |
|
+4.3% |
|
+3.6% |
|
+2.6% |
a. Relates to pay-TV services and free-to-air channels (C8, CStar and CNews) in mainland
Lagardère
Three months ended |
|
||||||
(in millions of euros) |
2024 |
|
2023 (b) |
|
|
% Change |
% Change at
|
Lagardère Publishing |
576 |
|
570 |
|
|
+1.1% |
+0.8% |
Lagardère Travel Retail |
1,242 |
|
1,046 |
|
|
+18.7% |
+13.6% |
Other activities (a) |
65 |
|
59 |
|
|
+10.2% |
- |
Revenues |
1,883 |
|
1,675 |
|
|
+12.4% |
+8.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by geographic area (in %) |
|
|
|
|
|
|
|
|
22% |
|
23% |
|
|
|
|
|
25% |
|
24% |
|
|
|
|
|
13% |
|
12% |
|
|
|
|
|
28% |
|
28% |
|
|
|
|
|
7% |
|
9% |
|
|
|
|
|
5% |
|
4% |
|
|
|
|
100% |
|
100% |
|
|
|
|
a. Includes Lagardère News (Paris Match,
b. Data as published by Lagardère for the first quarter of 2023. As a reminder,
APPENDIX II (Cont’d)
DETAIL OF REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)
Havas
|
Three months ended |
|
|
|
|
|
|
||||||
(in millions of euros) |
2024 |
|
2023 |
|
% Change |
|
% Change at
|
|
% Change
|
||||
Revenues |
649 |
|
611 |
|
+6.2% |
|
+7.1% |
|
+3.4% |
||||
Net revenues (a) |
617 |
|
588 |
|
+4.8% |
|
+5.8% |
|
+2.0% |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net revenues by geographic area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310 |
|
278 |
|
+11.5% |
|
|
+10.9% |
|
|
|
+5.5% |
|
|
220 |
|
230 |
|
-4.3% |
|
|
-2.7% |
|
|
|
-4.0% |
|
|
51 |
|
48 |
|
+6.3% |
|
|
+9.9% |
|
|
|
+0.8% |
|
|
36 |
|
32 |
|
+12.5% |
|
|
+14.6% |
|
|
|
+14.6% |
|
|
617 |
|
588 |
|
+4.8% |
|
|
+5.8% |
|
|
|
+2.0% |
a. Net revenues, a non-GAAP measure, relates to Havas’s revenues less pass-through costs rebilled to customers.
APPENDIX III
SCOPE OF CONSOLIDATION AND CURRENCY IMPACTS
Revenues
Three months ended |
||||
|
|
2024 |
2023 |
|
Organic growth |
+5.4% |
|
+2.0% |
|
Consolidation scope impact |
+80.9pts |
|
+1.1pt |
|
Change at constant currency rate |
+86.3% |
|
+3.1% |
|
Fx impact |
+0.3pt |
|
+0.2pt |
|
Actual growth |
+86.6% |
|
+3.3% |
Change in currencies
Three months ended |
||||||
Average rate over the period |
2024 |
|
2023 |
|
Change |
|
EUR vs. |
USD: |
1.090 |
|
1.074 |
|
+1.5% |
GBP: |
0.858 |
|
0.879 |
|
-2.4% |
|
PLN: |
4.333 |
|
4.719 |
|
-8.2% |
APPENDIX IV
HAVAS: SIGNIFICANT AWARDS AND
ACCOUNTS WON IN THE FIRST QUARTER OF 2024
Havas Creative
Tzield (Sanofi) (Havas New York),
AstraZeneca (Havas Life Shanghai).
__________________________________
1Net revenues, a non-GAAP measure, relates to Havas’s revenues less pass-through costs rebilled to customers.
2This press release contains unaudited consolidated revenues established under IFRS.
3 Constant perimeter mainly reflects the impacts of the combination with Lagardère, which has been fully consolidated from
4 Lagardère has been fully consolidated from
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