(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)

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