Vivendi profit is up fourfold

French media and telecommunications giant Vivendi said Thursday that profit increased more than fourfold in the third quarter, to 2.76 billion euros ($3.46 billion) from 578 million euros a year earlier, thanks to a gain of 2.32 billion euros on the dilution of its stake in video game publisher Vivendi Games.

Vivendi Games merged with Activision in July to form Activision Blizzard Inc. of Santa Monica.

Vivendi’s underlying profit fell, however, as lower earnings at its SFR mobile telecom business offset gains at its Canal Plus pay-TV operations.

Adjusted net income, or profit excluding one-time gains, fell 13.3% to 625 million euros ($783 million) in the three months through September. Analysts monitor Vivendi’s adjusted net income as their measure of profitability.

Vivendi, owner of the world’s biggest record company, Universal Music Group, also said it was on track to achieve its targeted growth in earnings this year. The company expects profit growth excluding gains from acquisitions this year to be similar to the 8.3% recorded in 2007.

Earnings before interest, tax and amortization, a gauge of core profitability, fell 4% in the third quarter to 1.28 billion euros ($1.6 billion).