Vivendi Profit Rises 12% on Cost Cutting
Vivendi Universal said Tuesday that second-quarter net income rose 12% as it cut costs in the music and video game units.
Net income rose to 758 million euros ($932 million), or 66 cents a share, from 678 million euros, or 59 cents, a year earlier, Vivendi said. The Paris-based company said it would beat its forecast for 2005 earnings, excluding some costs, of at least 1.8 billion euros.
All five of Vivendi’s units, including pay-TV company Canal Plus and Vivendi Universal Games, “remain profitable in the second half,” Chief Executive Jean-Bernard Levy said.
Vivendi’s wireless unit SFR added clients in the expanding French mobile-phone market, while the music and game units cut costs by eliminating jobs.
Vivendi already has reported that sales in the quarter rose 8%, helped by new albums from artists including rapper 50 Cent, more mobile-phone clients and players of the World of Warcraft online computer game.
Vivendi is focusing on music, mobile-phone services and games after Chairman Jean-Rene Fourtou sold assets valued at 22 billion euros to cut debt and restore the company to profitability.
Fourtou replaced Jean-Marie Messier as chief executive in 2002. Fourtou passed the CEO job to Levy in April.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
