Vivendi Universal's Revenues For Third Quarter of 2003.Business Editors PARIS--(BUSINESS WIRE)--Nov. 7, 2003 Vivendi Universal (Paris Bourse Paris Bourse National stock market of France. : EX FP; NYSE NYSE See: New York Stock Exchange : V): Revenues For Third Quarter of 2003 -- Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma (1) third quarter 2003 revenues for Vivendi Universal declined 7%, and 2% at constant currency. -- Vivendi Universal reiterates its earnings targets for full year 2003. Vivendi Universal's (Paris Bourse: EX FP; NYSE: V) consolidated revenues for the third quarter of 2003 amounted to E5,903 million compared with E14,551 million for third quarter of 2002. Excluding Veolia Environnement Veolia Environnement SA (Euronext: VIE, NYSE: VE) is a multinational French company with activities in four main areas - water, waste management, energy and transport services. and the publishing businesses divested in 2002 and 2003, pro forma(1) third quarter 2003 revenues for Vivendi Universal declined 7%, and 2% at constant currency. For the first nine months of 2003, Vivendi Universal reported revenues of E18,267 million compared with E44,541 million for the first nine months of 2002. On a pro forma basis(1), revenues were down 10% and 3% at constant currency, for the first nine months of 2003. Despite the fall in the dollar against the euro, given the improvements in its business units' performance, Vivendi Universal reiterates its earnings targets for full year 2003: -- Very strong growth in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , -- Significant growth in cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses (2), -- Very strong growth in proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. cash flow from operations(3), -- Return to profit (excluding non-recurring items and goodwill). Due to the expected closing of the VUE-NBC merger in 2004, Vivendi Universal's net debt(4), at the end of 2003, should be at around E13 billion. At the end of 2004, Vivendi Universal's net debt is expected to be below E5 billion. Consolidated revenues for the third quarter of 2003
In E million 3rd Q 3rd Q Variation Variation
2003 2002 pro forma
at constant
currency
----------------------------------------------------------------------
SFR-Cegetel 1,941 1,804 +8% +8%
----------------------------------------------------------------------
Maroc Telecom 387 399 -3% 0%
----------------------------------------------------------------------
Total Telecom 2,328 2,203 +6 % +6%
----------------------------------------------------------------------
UMG 1,115 1,328 -16% -9%
----------------------------------------------------------------------
VUE 1,305 1,291 +1% + 13%
----------------------------------------------------------------------
Canal Plus Group 969 1,167 -17% -15% + 3% (5)
----------------------------------------------------------------------
VU Games 77 166 -54% -39%
----------------------------------------------------------------------
Total Media 3,466 3,952 -12% -5%
----------------------------------------------------------------------
Total for main
businesses 5,794 6,155 -6% -1%
----------------------------------------------------------------------
Others(6) 109 170 -36% -38%
----------------------------------------------------------------------
Total for continuing
operations 5,903 6,325 -7% -2%
----------------------------------------------------------------------
Veolia Environnement - 7,184 NA
----------------------------------------------------------------------
VUP assets sold in
2002 and 2003 - 1,042 NA
----------------------------------------------------------------------
Total 5,903 14,551 -59%
----------------------------------------------------------------------
Comments for Vivendi Universal's Media and Telecom businesses for the third quarter of 2003 Telecom activity: Vivendi Universal's Telecom activity (SFR-Cegetel and Maroc Telecom Maroc Telecom (Arabic: اتصالات المغرب; Itissalatt Al Maghreb; Acronym: IAM) is the main telecommunication . IAM employs around 11,178 employees. ) revenues for the third quarter of 2003 amounted to E2,328 million, up 6%, compared with E2,203 million for the third quarter of 2002. SFR-Cegetel: SFR-Cegetel Group consolidated revenues for the third quarter of 2003 amounted to E1.9 billion, an 8% increase compared to the same period last year. Mobile telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. generated revenues of E1.7 billion, up 10% driven by continuing strong growth of the customer base and a favourable customer mix. Compared to September 2002, post paid customer base grew 20% totaling 56.9% of total customer base against 51.3%. Fixed telephony revenues declined 7% to E200 million mainly explained by unfavourable impact of year end 2002 voice price decreases and an unfavourable traffic mix. Maroc Telecom: Maroc Telecom's third quarter 2003 revenues amounted to E387 million, flat at constant currency. Mobile sales are up 8%, at constant currency, thanks to a larger pool of customers. Maroc Telecom has now more than 5 million mobile users. Fixed sales declined slightly mainly because of lower national voice traffic and international incoming traffic. Maroc Telecom has more than 1.1 million customers in the fixed activity. Media activity: Vivendi Universal's Media activity (Universal Music Group, Vivendi Universal Entertainment, Canal Plus Group and Vivendi Universal Games Universal Games is a Nevada company that produced such board games as Merger, Titanic: The Board Game, and the Apollo 13 edition of Solarquest. In 1965, their address was in Houston, Texas. Universal Games released Merger, a financial game for 2-4 players. ) revenues for the third quarter of 2003 amounted to E3,466 million, down 12% and 5% on a pro forma basis at constant currency, compared with E3,952 million for the third quarter of 2002. Universal Music Group (UMG UMG Universal Music Group UMG Universidad Mariano Gálvez de Guatemala (Mariano Galvez University of Guatemala) UMG Upgraded Metallurgical Grade (silicon) UMG Unlicensed Medical Graduate ): UMG's revenues for the third quarter 2003 of 1.1 billion were 16% below last year due to weak music market conditions and adverse currency movements, particularly the strengthening of the Euro against the US dollar. In constant currency, sales were down 9%. The improved performance in the quarter relative to the first half of 2003 reflected a stronger release schedule and higher Music Publishing The contractual relationship between a songwriter or music composer and a music publisher, whereby the writer assigns part or all of his or her music copyrights to the publisher in exchange for the publisher's commercial exploitation of the music. revenue. Best sellers in the quarter were Bad Boy II O.S.T. and new releases late in the period from Limp Bizkit, Sting and Nickelback. Other best sellers were the new release from Mary J. Blige and the Now 13 compilation Compiling a program. See compiler. album in the U.S. Last year's best sellers were Eminem and Nelly nel·ly or nel·lie n. pl. nel·lies Offensive Slang Used as a disparaging term for an effeminate homosexual man. [Probably from the name Nelly, nickname for Helen.] , both released in the second quarter, and a new album of Bon Jovi  This article or section reads like a and may need a .Please help [ to improve this article] to make it in tone and meet Wikipedia's . . In the U.S. total album unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. as measured by SoundScan SoundScan™ Osteoporosis An ultrasound used to assess bone density and thickness of cortical bone. See Bone densitometry. declined 6% against the prior year. It is the fourth consecutive quarter that the rate of sales has fallen. UMG's album market share fell slightly to 27.9% versus 28.7% last year. Vivendi Universal Entertainment (VUE See HP-VUE. VUE - Visual User Environment: a desktop manager for Unix from Hewlett-Packard. ): VUE revenues amounted to E1,305 million, up 1% and 13% on a pro forma basis at constant currency. Strong performance at Universal Pictures was partially offset by the absence of any revenues from Spencer Gifts, which was sold in the second quarter of 2003. Universal Pictures Group revenues increased 38% on a comparable basis (stand alone, pro forma, in dollars and in U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Positive results were driven by the theatrical successes of American Wedding and Seabiscuit versus The Bourne Bourne, town (1990 pop. 16,064), Barnstable co., SE Mass., crossed by Cape Cod Canal; settled 1627, inc. 1884. Bourne Bridge (1935), across the canal, made the town an entry point to Cape Cod and a resort and commercial center. Identity and Blue Crush crush A combination commodity trade in which soybean futures are purchased and soybean meal or oil futures are sold. Compare reverse crush. in the same period of the prior year. Additional upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside was generated by a stronger home video performance from 2 Fast 2 Furious, as well as the Scarface and Animal House promotion, when compared to Big Fat Liar Big Fat Liar is a 2002 comedy directed by Shawn Levy and starring Frankie Muniz (Malcolm in the Middle), Paul Giamatti and Nickelodeon's Amanda Bynes Plot Jason Shephard (Frankie Muniz and Dragonfly dragonfly, any insect of the order Odonata, which also includes the damselfly. Members of this order are generally large predatory insects and characteristically have chewing mouthparts and four membranous, net-veined wings; they undergo complete metamorphosis. in the prior period. Universal Television Networks revenues were up 5% on a comparable basis (stand alone, pro forma, in dollars and in U.S. GAAP), reflecting ad sales growth at both USA Network and Sci Fi Channel Sci Fi Channel may refer to:
Universal Parks & Resorts revenues were essentially flat to prior period. Canal Plus Group: Canal Plus Group revenues for the third quarter 2003 amounted to E969 million. Excluding all scope changes, principally Telepiu, revenues were up 3%. French pay-TV activities grew by 3% mainly thanks to the strong performances of Canalsatellite and Media Overseas. The motion picture activity benefited principally from the royalties generated by Working Title movies. Vivendi Universal Games (VUG vug n. A small cavity in a rock or vein, often with a mineral lining of different composition from that of the surrounding rock. [Cornish vooga. ): VUG revenues in the third quarter of 2003 amounted to E77 million, a 54% reduction versus prior year; at constant currency, revenues were down 39%. In 2003, the key launches were Simpsons, Hit and Run, Warcraft III Expansion pack in Europe, Homeworld 2, Bounty Hunter Name for a category of persons who are offered a promised gratuity in return for "hunting" down and capturing or killing a designated target, usually a person or animal. , Buffy, Chaos Bleeds and Crash V. This compared to a stronger line-up in 2002 which included Warcraft III in Europe, The Thing, Bruce Lee Noun 1. Bruce Lee - United States actor who was an expert in kung fu and starred in martial arts films (1941-1973) Lee Yuen Kam, Lee , Crash V, Fellowship fellowship Graduate education A post-residency training period of 1–2 yrs in a subspecialty–eg, hand surgery, which allows a specialized physician to develop a particular expertise that may have a related subspecialty board; fellowship time is often of the Ring, The Scorpion scorpion, any arachnid of the order Scorpionida with a hollow poisonous stinger at the tip of the tail. Scorpions vary from about 1/2 in. to about 6 in. (1–15 cm) long; most are from 1 to 3 in. (2.5–7.6 cm) long. King and Spyro II. In addition, pricing pressures were far greater in 2003 than in 2002. Important disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to the risks that : the reduction of Vivendi Universal's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. expected to be reached as a result of the debt-reduction plan, proposed disposals and/or restructurings will not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. in the timing or manner described above; that Vivendi Universal will not be able to obtain the necessary approvals to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... certain transactions; Vivendi Universal will be unable to further identify, develop and achieve success for new products, services and technologies; Vivendi Universal will face increased competition and that the effect on pricing, spending, third-party relationships and revenues of such competition will limit or reduce Vivendi Universal's revenue and/or income; Vivendi Universal will be unable to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers; and that Vivendi Universal will not be able to obtain or retain, upon acceptable terms, the licenses and permits necessary to operate and expand its businesses; as well as the risks described in the documents Vivendi Universal has filed with the U.S. Securities and Exchange Commission and the French Commission des Operations de Bourse bourse (b  rs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent. .
Investors and security holders are urged to read those documents at the
Commission's website at www.sec.gov. Those documents may also be
obtained free of charge from Vivendi Universal. Vivendi Universal does
not undertake nor does have any obligation, to provide updates or to
revise any forward-looking statements.Note to readers: Vivendi Universal provided preliminary, unaudited revenue information on a French GAAP basis for the third quarter and the first nine months of 2003 to 'Balo' a French official bulletin for publication in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with French regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . (1) The pro forma information illustrates the effect of the acquisition of the entertainment assets of InterActiveCorp and the disposal of VUP (VAX Unit of Performance) A unit of measurement equal to the performance of the VAX 11/780, the first VAX machine. VUP - VAX MIPS assets in 2002 & 2003 as if these transactions had occurred at the beginning of 2002. It also illustrates the accounting of Veolia Environnement using the equity method at January 1, 2002 instead of December 31, 2002. The pro forma information is calculated as a simple sum of the actual revenues of Vivendi Universal's businesses (excluding businesses sold) with the actual revenues reported by each of the acquired businesses in each period presented. Additionally, the revenues of Universal Studios international television networks are reported by Vivendi Universal Entertainment instead of Canal Plus Group. This reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. has no impact on the total revenues of Vivendi Universal. The pro forma revenues are not necessarily indicative of the combined revenues that would have occurred had the transactions actually occurred at the beginning of 2002. (2) Net cash provided by operating activities net of capital expenditures and before financing costs and taxes. (3) Defined as cash flow from operations excluding the minority stake in all less than 100% entities. (4) French GAAP gross debt less cash and cash equivalents. (5) Variation on a comparable basis (excluding all scope changes, principally Telepiu). (6) Comprised of Vivendi Telecom International, Internet, Vivendi Valorisation The valorization of capital is a concept created by Karl Marx in his critique of political economy. The German original term is "Verwertung" (specifically Kapitalverwertung (previously reported in non-core businesses), VUP assets not sold during 2002 and 2003 (Atica & Scipione, publishing activities in Brazil) and the elimination of intercompany transactions.
VIVENDI UNIVERSAL
REVENUES BY BUSINESS SEGMENT
(French GAAP, unaudited)
ACTUAL (1)
------------------------------
Quarter Ended September 30,
------------------------------
2003 2002 % Change
----------- ----------- ------
(In millions of euros)
Revenues
SFR - Cegetel (EUR) 1 941 (EUR) 1 804 8%
Maroc Telecom 387 399 -3%
----------- ----------- -----
Telecom activity 2 328 2 203 6%
Universal Music
Group 1 115 1 328 -16%
Vivendi Universal
Entertainment 1 305 1 291 1%
Canal Plus Group 969 1 167 -17%
Vivendi Universal
Games (2) 77 166 -54%
Media Activity 3 466 3 952 -12%
Others (3) 109 170 -36%
Total Vivendi
Universal
(Excluding businesses
sold in 2002 and
2003) (EUR) 5 903 (EUR) 6 325 -7%
=========== =========== ====
Veolia Environnement - 7 184 na
VUP assets sold
during 2002 and 2003
(4) - 1 042 na
----------- ----------- ----
Total Vivendi
Universal (EUR) 5 903 (EUR)14 551 -59%
ACTUAL (1)
------------------------------
Nine Months Ended September 30,
------------------------------
2003 2002 % Change
----------- ----------- -------
(In millions of euros)
Revenues
SFR - Cegetel (EUR) 5 553 (EUR) 5 246 6%
Maroc Telecom 1 101 1 115 -1%
----------- ----------- -------
Telecom activity 6 654 6 361 5%
Universal Music
Group 3 283 4 201 -22%
Vivendi Universal
Entertainment 4 267 4 442 -4%
Canal Plus Group 3 184 3 511 -9%
Vivendi Universal
Games (2) 317 502 -37%
----------- ----------- -------
Media Activity 11 051 12 656 -13%
Others (3) 434 612 -29%
----------- ----------- -------
Total Vivendi
Universal
(Excluding businesses
sold in 2002 and
2003) (EUR)18 139 (EUR)19 629 -8%
=========== =========== =======
Veolia Environnement - 22 135 na
VUP assets sold
during 2002 and 2003
(4) 128 2 777 -95%
----------- ----------- -------
Total Vivendi
Universal (EUR)18 267 (EUR)44 541 -59%
=========== =========== =======
PRO FORMA (5)
------------------------------
Quarter Ended September 30,
------------------------------
2003 2002 % Change
----------- ----------- ------
(In millions of euros)
Revenues
SFR - Cegtel (EUR) 1 941 (EUR) 1 804 8%
Maroc Telecom 387 399 -3%
----------- ----------- ------
Telecom activity 2 328 2 203 6%
Universal Music Group 1 115 1 328 -16%
Vivendi Universal
Entertainment 1 305 1 314 -1%
Canal Plus Group 969 1 144 -15%
Vivendi Universal
Games (2) 77 166 -54%
----------- ----------- ------
Media activity 3 466 3 952 -12%
Others (3) 109 170 -36%
----------- ----------- ------
Total Vivendi
Universal
(Excluding businesses
sold in 2002 and
2003) (EUR) 5 903 (EUR) 6 325 -7%
=========== =========== ======
PRO FORMA (5)
------------------------------
Nine Months Ended September 30,
------------------------------
2003 2002 % Change
----------- ----------- ------
(In millions of euros)
Revenues
SFR - Cegtel (EUR) 5 553 (EUR) 5 246 6%
Maroc Telecom 1 101 1 115 -1%
----------- ----------- ------
Telecom activity 6 654 6 361 5%
Universal Music Group 3 283 4 201 -22%
Vivendi Universal
Entertainment 4 267 5 139 -17%
Canal Plus Group 3 184 3 442 -7%
Vivendi Universal
Games (2) 317 502 -37%
----------- ----------- -------
Media activity 11 051 13 284 -17%
Others (3) 434 612 -29%
----------- ----------- -------
Total Vivendi
Universal
(Excluding businesses
sold in 2002 and
2003) (EUR)18 139 (EUR)20 257 -10%
=========== =========== =======
(1) 2003 and 2002 revenues totals represent actual revenues as published in BALO BALO Bulletin des Annonces Légales et Obligatoires (French) BALO Bdellovibrio and Like Organisms BALO Brigade Air Liaison Officer on November 7, 2003 and on November 15, 2002 respectively. (2) Formerly part of VUP (includes Kids Activities e.g. Adi/Adibou in France and JumpStart in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ). (3) Comprised of Vivendi Telecom International, Internet, Vivendi Valorisation (previously reported in non-core businesses), VUP assets not sold during 2002 and 2003 (Atica & Scipione, publishing activities in Brazil) and the elimination of intercompany transactions. (4) Comprised of Comareg sold in May 2003, the Consumer Press Division sold in February 2003, VUP assets sold to Investima 10 in December 2002, Houghton Mifflin Houghton Mifflin Company is a leading educational publisher in the United States. The company's headquarters is located in Boston's Back Bay. It publishes textbooks, instructional technology materials, assessments, reference works, and fiction and non-fiction for both young readers sold in December 2002 and VUP's Business to Business and Health divisions sold in June 2002. Please note that prior to its sale, Comareg was included in "Others" in the first quarter revenues published on June 17, 2003 for E128 million. (5) The pro forma information illustrates the effect of the acquisition of the entertainment assets of InterActiveCorp and the disposition of VUP assets in 2002 and 2003, as if these transactions had occurred at the beginning of 2002. It also illustrates the accounting of Veolia Environnement using the equity method at January 1, 2002 instead of December 31, 2002. The pro forma information is calculated as a simple sum of the actual revenues of Vivendi Universal's businesses (excluding businesses sold) and the actual revenues reported by each of the acquired businesses in each period presented. Additionally, the revenues of Universal Studios international television networks are reported by Vivendi Universal Entertainment instead of Canal Plus Group. This reclassification has no impact on the total revenues of Vivendi Universal. The pro forma revenues are not necessarily indicative of the combined revenues that would have occurred had the transactions actually occurred at the beginning of 2002. |
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