Growth at acquired publisher Lagardere, pay-TV unit Canal+ Group, and advertising giant Havas helped drive first-quarter revenue at French media and telecommunications conglomerate Vivendi, which is also moving ahead with studying a possible split into four separate companies.
Vivendi posted quarterly revenue of €4.28 billion ($4.59 billion) on Monday, an increase of 5.4 percent over the year-ago period when using constant currencies and focusing on the businesses that the company owns now. The company, led by chairman Yannick Bolloré and CEO Arnaud de Puyfontaine, did not disclose its earnings before interest, taxes and amortization (EBITA) on Monday.
Management touted strong growth of its core units, which has encouraged it to consider a split of the company since late last year. “Since the distribution and listing of Universal Music Group in 2021, Vivendi has endured a significantly high conglomerate discount, substantially reducing its valuation and thereby
limiting its ability to carry out external growth transactions for its subsidiaries,” Vivendi said on Monday. “However, companies like Canal+ Group, Havas and Lagardère are currently experiencing strong growth in an international context marked by numerous investment opportunities. In order to fully unleash the development potential of all its activities, the management board of Vivendi proposed to the supervisory board on Dec. 13, 2023, the possibility of exploring the feasibility of a project to split the company into several entities, each of which would be listed on the stock market.”
This study is ongoing, with one idea in focus being a split that would see Canal+, Havas, and Lagardere plus other publishing and distribution assets become three independent firms listed on the stock market. “Once separated from these three entities, Vivendi would remain as is, publicly listed, maintaining its role of supporting the transformation and expansion of its subsidiaries and continuing to actively manage its investments,” the company said on Monday.
Canal+ Group, which also houses film production and distribution arm StudioCanal, recorded first-quarter revenue of €1.54 billion, up 4.3 percent, or 2.6 percent when assuming constant currency rates and business portfolios.
Vivendi’s gaming firm Gameloft posted quarterly revenue of €68 million, down 3.4 percent compared to the first quarter of 2023, or down 2.9 percent assuming constant currencies and assets.
