Vivendi Posts Decline in Core Earnings

PARIS—European media group Vivendi SA reported a decline in its second-quarter core earnings Thursday, as its French pay-TV group Canal Plus continued to post losses in France.

Vivendi, which is run by its chairman and largest shareholder Vincent Bolloré , said its adjusted net income dropped 3.1% to €187 million ($211 million) despite an improving performance at its music business Universal Music Group.

The company reported a 41.5% drop in earnings before interest, taxes, depreciation and amortization to €174 million as Canal Plus continued to struggle. Vivendi said it had implemented a plan to reduce costs by €300 million at Canal Plus, €60 million to €80 million of which would be realized this year.

Second-quarter revenue fell 1.9% to €2.55 billion on a comparable basis from the same period last year.

Vivendi has made several acquisitions this year as it seeks to build an integrated media group to challenge Sky PLC and Netflix Inc. in Europe.

In April, the Paris-based company agreed to acquire Mediaset SpA's pay-TV unit as part of a deal that included a 3.5% share swap between the two companies. But Vivendi has been seeking to amend the agreement after "significant differences in the analysis" of the results of the unit, Mediaset Premium, emerged following the deal.

On Thursday, Vivendi said the agreement could become void September 30 as the two parties were unlikely to gain the European Commission's clearance before that date.

The Italian company last week asked a Milan tribunal to enforce its pact with Vivendi for the sale of its pay-TV unit, saying that it could seek damages of more than €1.5 billion if Vivendi fails to respect the accord.

Write to Nick Kostov at [e-mail]

(END) Dow Jones Newswires

August 25, 2016 13:15 ET (17:15 GMT)

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