Good results illustrate Vivendi regained its credibility

The good results of Vivendi in 2007 could consolidate its recent return to grace, if not in the financial markets (action backed off as the rest of the CAC 40), at least among analysts.

The group french media and telecommunications published Friday, February 29, an adjusted net income of 2.8 billion euros (8.3% compared to the same period in 2006). Its turnover increased by 8% to 21.6 billion euros.


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VIVENDI

EUR 26.09
-2.10%
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Even in the marginal income group, pay television, and especially the games are the two activities that grew the fastest. Thanks to the online game "World of Warcraft", the turnover of the subsidiary Vivendi Games has exceeded one billion euros. In telecommunications, the main trade group, Morocco Telecom was up almost 20% of its operating profit. In 2008, the leadership of Vivendi was expected earnings growth in "comparable" to that of 2007.

For some analysts, Vivendi is now contained value "defensive" on the stock market, able to resist better than others to the vagaries of the business cycle. "Half of the income came from telecommunications activities, where subscriptions dominate. They are less sensitive to a slowdown in consumption," said Conor O'Shea, an analyst at Kepler Equities.

The financial situation very difficult group in the summer of 2002 - when he was faced with debts that he could not meet - is now forgotten. In July 2002, Jean-Marie Messier, its high-profile CEO, accused by some of the french business establishment to have lost their sense of reality, is forced to resign. It pays for a policy of diversification considered to be too fast and too expensive.

Forgotten also the era Jean-Rene Fourtou (summer 2002-spring 2005), during which the successor to "J2M" seeks to redress the group accounts, but which analysts blame did manage a "Syndic bankruptcy. " In fact, tens of assets that Vivendi sells to replenish its funds: its publishing division, its shares in the television bouquet Echostar, a large share of its American assets with the sale of Vivendi Universal Entertainment.

Almost forgotten finally doubts on the strategy led by Jean-Bernard Levy, a lieutenant of Mr. Fourtou became CEO of the group in 2005. For a long time, analysts have focused their criticism on the supposed lack of coherence of the group, on the lack of synergy between its various businesses. But the failure of a takeover bid (OPA) of the American investor KKR, in 2006 (which was the dismantling) and the fact that Vivendi has since increased its major acquisitions, has restored confidence in the market .

In 2006, Vivendi has announced the acquisition including the satellite platform TPS and BMG Publishing, in music publishing. In 2007, he announced the acquisition of the publisher of Activision games and climb to 100% of the capital of Internet service provider Neuf Cegetel.

While some point the persistence of a strong "haircut holding company (the market value of Vivendi is lower by about 30% to the sum of its various activities), while others, such as analyst of a large bank French, believe that "it can not be said that if it were independent, each of the four trades Vivendi would be better managed."

One negative point remains: the decline in adjusted operating profit of SFR, the mobile phone subsidiary of Vivendi, which still weighs 42% of sales and half of profits in the group. Among other explanations, the fact that his great rival Orange (France Telecom) has won exclusive distribution of the iPhone, the phone Apple has been pushing SFR a costly bidding to retain or gain new subscribers