Vivendi Warns Its Canal-Plus Unit Could See Performance Decline in 2016

   By Nick Kostov 
 

PARIS--European media group Vivendi SA's reported net profit was in line with analysts' estimates Thursday, but it said its French pay-TV group Canal Plus could see a significant decline in its financial performance in 2016.

The French media conglomerate reported net profit of 142 million euros, down from EUR1.9 billion last year, when the company benefited from asset sales.

For the fourth quarter, Vivendi logged a 5.9% rise in sales to EUR3.1 billion.

Vivendi announced Thursday that its French pay-TV channel Canal Plus had signed an exclusive distribution agreement to show beIN Sports. The Qatari-owned sports channel entered the French market in 2012, spending millions of euros on rights, including the UEFA Champions League and the soccer World Cup. It quickly built up a base of some 2.5 million subscribers.

"The arrival of new national and international players in the areas of sports and fiction caused a surge in the price of content broadcasting rights and has increased the number of competing offers, leading to greater losses at Canal Plus France," Vivendi said in a statement.

Vivendi also launched a full takeover offer for French video game company Gameloft SE after building up a more than 30% shareholding.

Vivendi had a cash pile of EUR6.4 billion on Dec. 31, the company added.

(END) Dow Jones Newswires

February 18, 2016 12:39 ET (17:39 GMT)

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