Vivendi Confirms Telecom Italia Commitment as UMG Boosts 3Q Revenue -- Update
15 Novembre 2018 - 07:38PM
Dow Jones News
(Adds CEO's comments, UMG deal details, comments on Telecom
Italia)
By Pietro Lombardi
Vivendi SA (VIV.FR) on Thursday reiterated its long-term
commitment to Telecom Italia SpA (TIT.MI) as its third-quarter
revenue rose 5.5% on year, supported by strong revenue performance
at its Universal Music Group subsidiary.
The media conglomerate is a "long-term shareholder in Telecom
Italia and we are going to stay as such," Chief Executive Arnaud de
Puyfontaine said in a call with analysts.
Mr. De Puyfontaine, who is also a member of the Italian
company's board, said it is a "very serious" issue and dismissed
rumors of a sale of Vivendi's stake in Telecom Italia.
Vivendi is Telecom Italia's main shareholder and has been locked
for months in a fight with Elliott Management Corp. over the
company's strategy and board. The dismissal of Telecom Italia Chief
Executive Amos Genish this week marked the latest blow in the
struggle.
Vivendi's revenue for the third quarter was 3.38 billion euros
($3.82 billion) compared with EUR3.21 billion a year earlier. At
constant currency and perimeter, revenue increased 5.6%, the
company said. Revenue grew 13% at its Universal Music Group unit,
while declining 0.5% at French pay-TV group Canal+.
The company "delivered a strong performance," the CEO said.
The media conglomerate gave further details on its plan to sell
up to 50% Universal Music Group, a process that is "on track," the
CEO said.
The company expects the deal to be cash-only.
"Following the preliminary work carried out by the management
board, about 15 banks were chosen for the bank selection process.
The banks could help Vivendi identify one or more strategic
partners for its subsidiary Universal Music Group," it said.
The company plans to select five to seven of these banks.
Universal Music Group's results for 2018, which will be
published in February 2019, "will serve as a basis for the
discussions with potential partners," it said.
"The cash from this sale may be used for a significant
share-repurchase program through a tender offer and for potential
acquisitions," Vivendi said.
In July it said it would try to sell up to 50% of the world's
biggest music company, ruling out an initial public offering as it
was too complex. The sale process would start in the fall, it
said.
Vivendi said Thursday that it has entered into a share-purchase
agreement with Grupo Planeta for 100% of publishing group Editis.
The deal, subject to approval of the French competition authority,
should be completed by late 2018 or early 2019.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
November 15, 2018 13:23 ET (18:23 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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