Vivendi Full Year 2007 Revenues Increase Significantly (+9.7%)
Thursday, January 31st, 2008 filled in French Media | No Comments »
For the full year 2007, Vivendi’s revenues total €21,657 million compared to €20,044 million for the full year of 2006, an increase of 8% (+9.7% at constant currency). For the fourth quarter of 2007, Vivendi’s revenues total €6,014 million compared to €5,545
million for the fourth quarter of 2006, an increase of 8.5% (+10.5% at constant currency). Vivendi confirms 2007 outlook: an adjusted net income above €2.7 billion, at approximately €2.8 billion.
Vivendi Confirms Position as a Digital Entertainment Leader
• UMG: increased market share in all of its major markets
• Canal+: TPS integration and subscription growth
• SFR: 3G/3G+ leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter
• Maroc Telecom: 20% growth
• Vivendi Games: revenues exceeded €1 billion and World of Warcraft reaches over 10 million subscribers
Universal Music Group
Market share increased in all of its major markets
For the full year 2007, Universal Music Group increased market share in all of its major markets. Universal Music Group’s revenues amounted to €4,870 million versus €4,955 million in 2006 (-1.7%). Revenues increased 3.0% at constant currency reflecting revenues from the acquisitions2 in 2007 of BMG Music Publishing (BMGP) and of Sanctuary, as well as strong digital sales growth and a better than market performance. Excluding these acquisitions and at constant currency, revenues were 3% less than the previous year reflecting a difficult music market and lower license and legal settlement income.
Digital sales of €676 million grew 51% versus last year at constant currency, representing 14% of total revenues. Best sellers included titles from Amy Winehouse, Mika, Rihanna and the High School Musical 2 Soundtrack. For the fourth quarter of 2007, Universal Music Group’s revenues of €1,605 million declined 3.1% compared to the same period last year. Revenues increased 2.4% at constant currency reflecting revenues from the acquisitions BMGP and Sanctuary and a strong performance in Japan. Excluding these acquisitions and at constant currency, revenues declined 5%. Digital sales of €188 million grew 54% versus last year at constant currency with strong growth in both the on-line and mobile sectors. Best sellers in the period included new titles from Andrea Bocelli, Eagles and Mary J. Blige.
Canal+ Group
TPS integration and subscription growth
For the full year 2007, Canal+ Group’s revenues amounted to €4,363 million, a 20.2% increase compared to 2006. Revenues from pay-TV operations in France were up €746 million (+25%) compared to 2006. Pay-TV operations benefited from the TPS acquisition3, as well as increased revenues from portfolio and higher advertising revenues.
CanalOverseas also had a positive impact. As of December 31, 2007, Canal+ Group’s total portfolio amounts to more than 10.5 million pay-TV subscriptions (individual and collective, in France and overseas, including Africa). Net additions over the year totalled 280,000 subscriptions. This figure included net additions of 330,000 subscriptions and a negative adjustment of approximately 50,000 subscriptions resulting from a portfolio change of scope to include viable contracts only.
Canal+‘s total subscriptions at the end of the year reached 5.3 million, which represented a net increase of more than 80,000 over the year. The proportion of Canal+ Le Bouquet subscriptions reached 71% of the total Canal+ portfolio, up from 61% a year ago. The churn rate was 12.8%.
CanalSat and TPS’ total subscriptions were more than 5.2 million, which represented a net increase of 200,000 compared to the end of 2006. CanalSat’s churn rate was 10%. Revenues from Canal+ Group’s other operations (excluding PSG, sold in June 2006) grew €24 million or 4%, thanks to the good performance of Canal+ in Poland and higher advertising revenues from i>Télé.
StudioCanal posted lower revenues (€352 million in 2007 versus €362 million in 2006) despite good international performances driven by the growth of Optimum.
For the fourth quarter of 2007, Canal+ Group’s revenues amounted to €1,132 million, which represented a 23.3%
increase compared to the same period last year. Revenues from pay-TV operations in France grew €196 million (26%) compared to the fourth quarter of 2006. This strong increase was mainly due to the favorable impact of the TPS merger, as well as the increased portfolio of Canal+ and CanalSat. CanalOverseas contributed favorably as well.
Revenues from Canal+ Group’s other operations (Poland, i>Télé and StudioCanal) were also up (€18 million in total).
SFR
3G/3G+ leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter
For the full year 2007, SFR’s revenues4 increased by 3.9% to €9,018 million compared to 2006. Mobile revenues increased by 1.6% to € 8,785 million compared to 2006. Mobile service revenues5 were up by 0.9% to €8,382 million.
The favorable effects of an increase in the customer base along with growth in “voice†and “data†usage and the Enterprise segment dynamism were largely offset by strong cuts on mobile voice termination rates (21%) as of January 1, 2007, and on SMS termination rates (30%) as of mid-September 2006. SFR’s ARPU6 decreased by 3.3% to €440 at the end of December 2007 (versus €455 at the end of December 2006). Excluding the impacts of regulated tariff cuts, SFR mobile service revenues would have been up by 4.4%.
In 2007, SFR added 883,000 net new customers, taking its registered customer base to 18.766 million7, a 4.9% increase versus last year. The contract customer base grew by 5.8% year-on-year to 12.294 million (676,000 net additions), leading to an improved customer mix of 0.5 percentage point in one year.
In 2007, SFR confirmed its leadership in mobile broadband networks and services both in Enterprise Segment and Mass Market:
• SFR number one in network quality in 2007 ARCEP survey for the fourth consecutive year8;
• SFR leader in 3G/3G+ customer number with 4.1 million customers at the end of December 2007, compared
to 2.7 million at the end of December 2006.
• Successful mobile Internet access offers with “Illimythics†launched in November 2007 and selected by
more than 250,000 customers (more than 175,000 customers at the end of 2007) and more than 40,000 3G+
USB modems for laptops sold since July 2007;
• Successful Happy Zone offer with more than 400,000 Happy Zone customers at the end of the year.
Despite the impact of the regulator’s cut on SMS termination rates, net data revenues improved by 8.1% mainly due to interpersonal services (SMS and MMS), content (music, TV-Videos, games) and the development of mobile Internet and corporate segment operations. Net data revenues represented 13.7% of service revenues at the end of December 2007, compared to 12.8% at the end of December 2006. Number of text messages (SMS) sent by SFR customers grew by 15.2% on a year-on-year basis to 7.3 billion and revenues from data services, excluding SMS and MMS, increased by 21.4%.
ADSL and fixed revenues reached €233 million, mainly reflecting the integration of Télé2 France since July 20, 2007. In total, SFR has 415,000 ADSL customers and 2.036 million fixed voice customers at the end of December 2007. For the fourth quarter of 2007, SFR’s revenues increased by 8.7% to €2,371 million compared to the same period of 2006.
Mobile revenues increased by 3.3% at €2,246 million compared to the same period in 2006. Mobile service revenues were up by 2.2% to €2,128 million. SFR added 657,000 net new customers in the fourth quarter of 2007 versus 377,000 net new customers for the same period last year. The favorable effects of an increase in the customer base along with growth in “voice†and “data†usage and the Enterprise segment dynamism were largely offset by strong cuts on mobile voice termination rates (21%) as of January 1, 2007. Excluding the impacts of the regulated tariff cuts, SFR’ service revenues would have been up by
5.7% compared to the fourth quarter of 2006. Data revenues amounted to €322 million and increased by 20.6% when compared to the same period last year.
ADSL and fixed revenues reached €125 million due to the integration of Télé2 France since July 20, 2007.
Maroc Telecom
20% growth
For the full year 2007, Maroc Telecom’s revenues9 increased by 19.6% to €2,456 million compared to 2006 (+10.5% at constant currency and at constant perimeter10). Mobile revenues11 grew by 27.3% to €1,721 million compared to 2006 (+21.4% at constant currency and at constant perimeter).
Despite increased competition, the customer base12 13 still experienced strong growth and reached 13,327 million customers, up 24.5% compared to December 2006 (or a net increase of 2,620 million customers over the year 2007), driving the sharp evolution of mobile revenue.
The blended ARPU12 14 reached €9.6, down 4.9% at constant currency compared to 2006, mainly due to a strong increase of the customer base. The average price decrease driven by promotional offers, in particular unlimited offers, allowed strong customer usage growth.
Fixed and Internet revenues11 grew by 5.7% to €989 million compared to 2006 (-6% at constant currency and at constant perimeter). Fixed customer base12 reached 1.289 million lines, experiencing a net increase of 22,620 lines over the year 2007 due to the success of unlimited offers launched at the end of 2006. However, the average “voiceâ€12 invoice amount decreased by 3.5% (at constant currency) over the same period. The ADSL customer base12 still experienced a strong growth, due to the active promotions policy and reached 470,000 lines, displaying a net increase of more than 86 000 lines in 2007 and increasing by 22.4% compared to December 2006. For the fourth quarter of 2007, Maroc Telecom’s revenues increased by 27.7% to €637 million compared to same period last year (14.9% at constant currency and at constant perimeter).
Mobile revenues grew by 40.3% to €455 million compared to the same period last year (30.6% at constant currency and at constant perimeter).
Fixed and Internet revenues grew by 4.9% to €246 million compared to the same period last year (-8.5% at constant
currency and at constant perimeter).
Vivendi Games
Revenues exceeded €1 billion and World of Warcraft reaches over 10 million subscribersFor the first time ever,
Vivendi Games exceeded €1 billion in revenues. Vivendi Games’ 2007 revenues of €1,018 million were 26.6% above the prior year (up 33.5% on a constant currency basis). Blizzard Entertainment, Inc’s revenues of €814 million were higher than 2006 (up 58%), while the Sierra Entertainment, Sierra Online and Vivendi Games Mobile businesses were lower at €204 million (-29%); each of the business segments were impacted by unfavorable currency exchange movements.
Blizzard Entertainment’s revenues increased strongly, driven by the continued momentum of World of Warcraft, its award-winning subscription-based massively multiplayer online role-playing game (MMORPG) and the very successful first quarter 2007 release of World of Warcraft: The Burning Crusade, Blizzard Entertainment’s first World of Warcraft expansion. As a result of Blizzard’s 2007 subscriber acquisition initiatives World of Warcraft’s subscriber base increased by 2 million over the year, reaching more than 10 million players worldwide.
Sierra Entertainment’s revenues were lower overall, while the Sierra Online and Vivendi Games Mobile divisions each showed growth. Sierra’s 2007 PC and console releases, including Crash of the Titans, Spyro: The Eternal Night, F.E.A.R. expansion and compilations, Timeshift and World in Conflict, were not as strong as the 2006 release slate, which included Scarface, Ice Age 2, Eragon, Spyro: A New Beginning and F.E.A.R. For the fourth quarter of 2007, Vivendi Games’ revenues of €302 million were 7.4% below the prior year (down 4.4% on a constant currency basis). Blizzard Entertainment’s revenues of €186 million were higher than 2006 (+19%), while the Sierra Entertainment, Sierra Online and Vivendi Games Mobile businesses were lower at €116 million
(-32%); each of the business segments were impacted by unfavorable currency exchange movements.
The increase in Blizzard Entertainment’s revenues was driven by the continued momentum of World of Warcraft.
For the full year 2007, Vivendi’s revenues total €21,657 million compared to €20,044 million for the full year of 2006, an increase of 8% (+9.7% at constant currency). For the fourth quarter of 2007, Vivendi’s revenues total €6,014 million compared to €5,545
million for the fourth quarter of 2006, an increase of 8.5% (+10.5% at constant currency). Vivendi confirms 2007 outlook: an adjusted net income above €2.7 billion, at approximately €2.8 billion.
Vivendi Confirms Position as a Digital Entertainment Leader
• UMG: increased market share in all of its major markets
• Canal+: TPS integration and subscription growth
• SFR: 3G/3G+ leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter
• Maroc Telecom: 20% growth
• Vivendi Games: revenues exceeded €1 billion and World of Warcraft reaches over 10 million subscribers
Universal Music Group
Market share increased in all of its major markets
For the full year 2007, Universal Music Group increased market share in all of its major markets. Universal Music Group’s revenues amounted to €4,870 million versus €4,955 million in 2006 (-1.7%). Revenues increased 3.0% at constant currency reflecting revenues from the acquisitions2 in 2007 of BMG Music Publishing (BMGP) and of Sanctuary, as well as strong digital sales growth and a better than market performance. Excluding these acquisitions and at constant currency, revenues were 3% less than the previous year reflecting a difficult music market and lower license and legal settlement income.
Digital sales of €676 million grew 51% versus last year at constant currency, representing 14% of total revenues. Best sellers included titles from Amy Winehouse, Mika, Rihanna and the High School Musical 2 Soundtrack. For the fourth quarter of 2007, Universal Music Group’s revenues of €1,605 million declined 3.1% compared to the same period last year. Revenues increased 2.4% at constant currency reflecting revenues from the acquisitions BMGP and Sanctuary and a strong performance in Japan. Excluding these acquisitions and at constant currency, revenues declined 5%. Digital sales of €188 million grew 54% versus last year at constant currency with strong growth in both the on-line and mobile sectors. Best sellers in the period included new titles from Andrea Bocelli, Eagles and Mary J. Blige.
Canal+ Group
TPS integration and subscription growth
For the full year 2007, Canal+ Group’s revenues amounted to €4,363 million, a 20.2% increase compared to 2006. Revenues from pay-TV operations in France were up €746 million (+25%) compared to 2006. Pay-TV operations benefited from the TPS acquisition3, as well as increased revenues from portfolio and higher advertising revenues.
CanalOverseas also had a positive impact. As of December 31, 2007, Canal+ Group’s total portfolio amounts to more than 10.5 million pay-TV subscriptions (individual and collective, in France and overseas, including Africa). Net additions over the year totalled 280,000 subscriptions. This figure included net additions of 330,000 subscriptions and a negative adjustment of approximately 50,000 subscriptions resulting from a portfolio change of scope to include viable contracts only.
Canal+‘s total subscriptions at the end of the year reached 5.3 million, which represented a net increase of more than 80,000 over the year. The proportion of Canal+ Le Bouquet subscriptions reached 71% of the total Canal+ portfolio, up from 61% a year ago. The churn rate was 12.8%.
CanalSat and TPS’ total subscriptions were more than 5.2 million, which represented a net increase of 200,000 compared to the end of 2006. CanalSat’s churn rate was 10%. Revenues from Canal+ Group’s other operations (excluding PSG, sold in June 2006) grew €24 million or 4%, thanks to the good performance of Canal+ in Poland and higher advertising revenues from i>Télé.
StudioCanal posted lower revenues (€352 million in 2007 versus €362 million in 2006) despite good international performances driven by the growth of Optimum.
For the fourth quarter of 2007, Canal+ Group’s revenues amounted to €1,132 million, which represented a 23.3%
increase compared to the same period last year. Revenues from pay-TV operations in France grew €196 million (26%) compared to the fourth quarter of 2006. This strong increase was mainly due to the favorable impact of the TPS merger, as well as the increased portfolio of Canal+ and CanalSat. CanalOverseas contributed favorably as well.
Revenues from Canal+ Group’s other operations (Poland, i>Télé and StudioCanal) were also up (€18 million in total).
SFR
3G/3G+ leader, successful launch of Illimythics, 657 000 net new SFR customers in the fourth quarter
For the full year 2007, SFR’s revenues4 increased by 3.9% to €9,018 million compared to 2006. Mobile revenues increased by 1.6% to € 8,785 million compared to 2006. Mobile service revenues5 were up by 0.9% to €8,382 million.
The favorable effects of an increase in the customer base along with growth in “voice†and “data†usage and the Enterprise segment dynamism were largely offset by strong cuts on mobile voice termination rates (21%) as of January 1, 2007, and on SMS termination rates (30%) as of mid-September 2006. SFR’s ARPU6 decreased by 3.3% to €440 at the end of December 2007 (versus €455 at the end of December 2006). Excluding the impacts of regulated tariff cuts, SFR mobile service revenues would have been up by 4.4%.
In 2007, SFR added 883,000 net new customers, taking its registered customer base to 18.766 million7, a 4.9% increase versus last year. The contract customer base grew by 5.8% year-on-year to 12.294 million (676,000 net additions), leading to an improved customer mix of 0.5 percentage point in one year.
In 2007, SFR confirmed its leadership in mobile broadband networks and services both in Enterprise Segment and Mass Market:
• SFR number one in network quality in 2007 ARCEP survey for the fourth consecutive year8;
• SFR leader in 3G/3G+ customer number with 4.1 million customers at the end of December 2007, compared
to 2.7 million at the end of December 2006.
• Successful mobile Internet access offers with “Illimythics†launched in November 2007 and selected by
more than 250,000 customers (more than 175,000 customers at the end of 2007) and more than 40,000 3G+
USB modems for laptops sold since July 2007;
• Successful Happy Zone offer with more than 400,000 Happy Zone customers at the end of the year.
Despite the impact of the regulator’s cut on SMS termination rates, net data revenues improved by 8.1% mainly due to interpersonal services (SMS and MMS), content (music, TV-Videos, games) and the development of mobile Internet and corporate segment operations. Net data revenues represented 13.7% of service revenues at the end of December 2007, compared to 12.8% at the end of December 2006. Number of text messages (SMS) sent by SFR customers grew by 15.2% on a year-on-year basis to 7.3 billion and revenues from data services, excluding SMS and MMS, increased by 21.4%.
ADSL and fixed revenues reached €233 million, mainly reflecting the integration of Télé2 France since July 20, 2007. In total, SFR has 415,000 ADSL customers and 2.036 million fixed voice customers at the end of December 2007. For the fourth quarter of 2007, SFR’s revenues increased by 8.7% to €2,371 million compared to the same period of 2006.
Mobile revenues increased by 3.3% at €2,246 million compared to the same period in 2006. Mobile service revenues were up by 2.2% to €2,128 million. SFR added 657,000 net new customers in the fourth quarter of 2007 versus 377,000 net new customers for the same period last year. The favorable effects of an increase in the customer base along with growth in “voice†and “data†usage and the Enterprise segment dynamism were largely offset by strong cuts on mobile voice termination rates (21%) as of January 1, 2007. Excluding the impacts of the regulated tariff cuts, SFR’ service revenues would have been up by
5.7% compared to the fourth quarter of 2006. Data revenues amounted to €322 million and increased by 20.6% when compared to the same period last year.
ADSL and fixed revenues reached €125 million due to the integration of Télé2 France since July 20, 2007.
Maroc Telecom
20% growth
For the full year 2007, Maroc Telecom’s revenues9 increased by 19.6% to €2,456 million compared to 2006 (+10.5% at constant currency and at constant perimeter10). Mobile revenues11 grew by 27.3% to €1,721 million compared to 2006 (+21.4% at constant currency and at constant perimeter).
Despite increased competition, the customer base12 13 still experienced strong growth and reached 13,327 million customers, up 24.5% compared to December 2006 (or a net increase of 2,620 million customers over the year 2007), driving the sharp evolution of mobile revenue.
The blended ARPU12 14 reached €9.6, down 4.9% at constant currency compared to 2006, mainly due to a strong increase of the customer base. The average price decrease driven by promotional offers, in particular unlimited offers, allowed strong customer usage growth.
Fixed and Internet revenues11 grew by 5.7% to €989 million compared to 2006 (-6% at constant currency and at constant perimeter). Fixed customer base12 reached 1.289 million lines, experiencing a net increase of 22,620 lines over the year 2007 due to the success of unlimited offers launched at the end of 2006. However, the average “voiceâ€12 invoice amount decreased by 3.5% (at constant currency) over the same period. The ADSL customer base12 still experienced a strong growth, due to the active promotions policy and reached 470,000 lines, displaying a net increase of more than 86 000 lines in 2007 and increasing by 22.4% compared to December 2006. For the fourth quarter of 2007, Maroc Telecom’s revenues increased by 27.7% to €637 million compared to same period last year (14.9% at constant currency and at constant perimeter).
Mobile revenues grew by 40.3% to €455 million compared to the same period last year (30.6% at constant currency and at constant perimeter).
Fixed and Internet revenues grew by 4.9% to €246 million compared to the same period last year (-8.5% at constant
currency and at constant perimeter).
Vivendi Games
Revenues exceeded €1 billion and World of Warcraft reaches over 10 million subscribersFor the first time ever,
Vivendi Games exceeded €1 billion in revenues. Vivendi Games’ 2007 revenues of €1,018 million were 26.6% above the prior year (up 33.5% on a constant currency basis). Blizzard Entertainment, Inc’s revenues of €814 million were higher than 2006 (up 58%), while the Sierra Entertainment, Sierra Online and Vivendi Games Mobile businesses were lower at €204 million (-29%); each of the business segments were impacted by unfavorable currency exchange movements.
Blizzard Entertainment’s revenues increased strongly, driven by the continued momentum of World of Warcraft, its award-winning subscription-based massively multiplayer online role-playing game (MMORPG) and the very successful first quarter 2007 release of World of Warcraft: The Burning Crusade, Blizzard Entertainment’s first World of Warcraft expansion. As a result of Blizzard’s 2007 subscriber acquisition initiatives World of Warcraft’s subscriber base increased by 2 million over the year, reaching more than 10 million players worldwide.
Sierra Entertainment’s revenues were lower overall, while the Sierra Online and Vivendi Games Mobile divisions each showed growth. Sierra’s 2007 PC and console releases, including Crash of the Titans, Spyro: The Eternal Night, F.E.A.R. expansion and compilations, Timeshift and World in Conflict, were not as strong as the 2006 release slate, which included Scarface, Ice Age 2, Eragon, Spyro: A New Beginning and F.E.A.R. For the fourth quarter of 2007, Vivendi Games’ revenues of €302 million were 7.4% below the prior year (down 4.4% on a constant currency basis). Blizzard Entertainment’s revenues of €186 million were higher than 2006 (+19%), while the Sierra Entertainment, Sierra Online and Vivendi Games Mobile businesses were lower at €116 million
(-32%); each of the business segments were impacted by unfavorable currency exchange movements.
The increase in Blizzard Entertainment’s revenues was driven by the continued momentum of World of Warcraft.
Digital music distribution is now part of the music industry’s culture, and Orange is playing a pivotal role in the development of quality services for music and entertainment.
The NRJ Group’s sales (excluding exchange operations) for 2007 reached 359.7 million euros compared to 398.3 million euros in 2006. i.e. a 9.7% fall (-7.9% on a like-for-like basis and at a constant exchange rate). In the fourth quarter, the Group’s sales were 99.8 million euros compared to 119.0 million euros in Q4 2006. i.e. a 16.1% fall (-14.3% on a like-for-like basis and at a constant exchange rate).
Microsoft Corp. today announced second quarter records for revenue, operating income and diluted earnings per share of $16.37 billion, $6.48 billion and $0.50, respectively. Compared to the year ago period, these figures represent growth of 30%, 87% and 92% for revenue, operating income and diluted earnings per share, respectively.