Vivendi Shares Rise on Earnings Beat, UMG Stake Sale Plans
31 Luglio 2018 - 10:42AM
Dow Jones News
By Nathan Allen
Shares in Vivendi SA (VIV.FR) rose sharply in early trade
Tuesday after the French media group posted better-than-expected
earnings, and said that it is looking to sell a stake of up to 50%
in Universal Music Group.
First-half earnings before interest, taxes and amortization, or
Ebita, was 542 million euros ($633.3 million) up 32% on year and
beating consensus by more than 5.6%, according to Bryan Garnier
analyst Thomas Coudry. Second-quarter sales of EUR3.35 billion are
largely in line with consensus, he said.
The plan to sell up to 50% of UMG is higher than previously
suggested and is around 25% more than the market expected,
Liberum's Annick Maas said.
Vivendi hasn't yet set a price floor for the stake, but the
company said it would use the proceeds for a significant share
purchase, a share-capital reduction and bolt-on acquisitions.
"Our goal is to determine a list of potential partners that
would help us to obtain the best valuation for Universal while
accelerating its growth," Vivendi Chief Executive Arnaud de
Puyfontaine said.
At 0803 GMT Vivendi was trading 4.4% higher at EUR22.35, having
earlier risen as high as EUR22.50.
The company also disclosed that it has bought French book
publisher Editis for EUR900 million. The price, equivalent to 15
times Ebita, is fairly steep but the business will likely be cash
generative, Ms. Maas said.
"Publishing businesses generally tend to be viewed as cash
cows," Ms. Maas says.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
July 31, 2018 04:27 ET (08:27 GMT)
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