Vivendi shares are higher Friday, as the media group reported strong third quarter results, late Thursday. An upbeat performance at its Universal Music Group arm proved supportive, while the French business is also positive for its French TV and entertainment business, Canal Plus.
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Vivendi added that it currently has no plans to sell its stake in Telecom Italia, despite the ongoing problems over the leadership of the business.
By 1320 BST, Vivendi shares were 3.66% higher at €21.79. The stock has been notably lower in recent days.
Vivendi Q3 earnings
Vivendi said that its third quarter revenues grew 5.6% from a year earlier, to total €3.38 billion. The main single contributor to that total came from UMG, where revenues surged 13.3% to €1.495 billion.
Recorded music revenues were 10.2% higher in Q3 2018 from a year earlier, supported by subscription and streaming music revenues surging 35.8%. Music Publishing revenues, meanwhile, were also impressive during the period, climbing 10.6%.
“UMG songs occupied the No. 1 spot on the Spotify Global Chart for 37 out of the first 39 weeks of 2018,” Vivendi said.
“In addition, for the last week of September 2018, UMG had nine out of the Top 10 Albums on the Billboard 200 chart in the US. This marks the first time in nearly five years that a label group has achieved this performance, with UMG also being the group that did it back in October 2013,” the media group added.
Canal Plus outlook
While the UMG arm of Vivendi performed strongly, its TV streaming Canal Plus section, was less positive. T’s Q3 revenue slipped 0.5% to €1.247 billion. However, Vivendi said it remains close to achieving its targets for 2018 as a whole.
“For the full year 2018, Canal+ Group is close to achieving the objectives set. Television activities will achieve their goals; Studiocanal may end the year slightly behind,” Vivendi said.
Meanwhile, the French Group added that the acquisition of publishing group, Editis, is ongoing and it expects to complete by the end of 2018, early 2019.