Vivendi Universal Continued to Improve Overall Operating Performance in the Third Quarter of 2003.Business Editors PARIS--(BUSINESS WIRE)--Dec. 2, 2003 Vivendi
VIVENDI® is a software package for care management and staff organisation published by the German software company CONNEXT and introduced in 1995. Universal (NYSE NYSE See: New York Stock Exchange :V) Note: This press release contains consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results that are unaudited. The results are established under French Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (French-GAAP), except when precised. Third quarter of 2003 -- 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. of E896 million, up 43% versus last year on a 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 basis(1). -- Adjusted net income(2) of E206 million, versus E37 million in 2002. -- Net Profit(2) of E131 million, versus a net loss of E1,234 million in 2002. -- Consolidated Cash-flow from operations (3) of E1,113 million, multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by 4.3 on a pro forma basis. -- 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(4) of E682 million, improved by E921 million versus last year on a pro forma basis. -- Net debt(4) at E12.8 billion, down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. E6 billion versus a year ago and decreased by E900 million during the quarter. First Nine months of 2003 -- Operating Income of E2,573 million, up 27% versus last year on a pro forma basis(1). -- Adjusted net income(2) of E192 million, versus E210 million in 2002. -- Net loss(2) of E501 million, versus a net loss of E13,540 million in 2002. -- Consolidated Cash-flow from operations(3) of E3,327 million, up 63% versus last year on a pro forma basis. -- Proportionate Cash-flow from operations(4) of E2,032 million, multiplied by 4.1 versus last year on a pro forma basis. -------------- (1)The pro forma information illustrates the effect of the acquisition of the entertainment assets of InterActiveCorp. in May 2002 and the disposition of Vivendi Universal Publishing assets sold 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. (2)For reconciliation of net income (loss) to adjusted net income (loss) please refer to the table in the supplementary schedules attached to this release. (3)Net cash provided by operating activities net of capital expenditures and before financing costs and taxes. (4)Defined as cash flow from operations excluding the minority stake. (5)French GAAP gross debt less cash and cash equivalents. In view of the improved operating performance for the first nine months of 2003 and despite the negative impact of the Euro/Dollar exchange rate, Vivendi Universal reiterates its full year 2003 guidance: -- Very strong growth in operating income; -- 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 ; -- Very strong growth in proportionate cash flow from operations; -- Return to positive adjusted net income. Vivendi Universal's net debt, at the end of 2003, should be approximately E13 billion. At the end of 2004, Vivendi Universal's net debt is expected to be approximately E 5 billion. Comments on the Group's earnings: Due to substantial scope reductions, comparing 2003 to 2002 results, on an actual basis, may not be meaningful. That is why the comparisons below are presented with an illustrative il·lus·tra·tive adj. Acting or serving as an illustration. il·lus  tra·tive·ly adv.Adj. 1. scope identical to existing fully consolidated subsidiaries(6). Operating income: For the third quarter of 2003, the operating income was E896 million, up 43%, on a pro forma basis, compared to the same period last year. -- There is quite a contrast in the performance of the various Media business units. Canal Plus Group has had another strong quarter with a positive operating income and a positive cash flow from operations. VUE See HP-VUE. VUE - Visual User Environment: a desktop manager for Unix from Hewlett-Packard. had a strong quarter with a solid cash flow performance. In contrast, 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 and 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. experienced significant weakness, mainly driven by revenue decline. -- The Telecom business units continued to produce profitable growth in the quarter. At E705 million, their operating income is up 23% versus last year. -- The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the non-core businesses (VUNet, VTI VTI Väg- och transportforskningsinstitutet VTI Velocity-Time Integral VTI Vietnam Telecom International VTI Vocational Training Institute VTI Virtual Tunnel Interface (Cisco) VTI Vermeer Technologies Incorporated , remaining 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 and 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 ) continued to make progress with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. down to E26 million, versus E152 million a year ago. For the first nine months of 2003, the operating income was E2,573 million, up 39% compared to the same period last year. On a pro forma basis, i.e., as if InterActiveCorp's entertainment assets had been acquired as of January January: see month. 1, 2002, the first nine months operating income was up 27%, despite the negative impact from the euro/dollar average exchange rate. On a constant currency basis, pro forma operating income growth would have been 32%. Adjusted net income For the third quarter of 2003, the adjusted net income amounted to E206 million, versus E37 million for the same period last year. For the first nine months of 2003, the adjusted net income was E192 million, including net capital gain on portfolio investments and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of E20 million (mainly related to the impaired See assistive technology. investment in SBCP SBCP Sociedade Brasileira de Cirurgia Plástica (Brazilian Plastic Surgery Society) SBCP Sabah Biodiversity Conservation Project (Malaysia) ). This compared to E210 million for the first nine months of 2002 that were including net capital gain on portfolio investments and marketable securities of E180 million (mainly related to the sale of Vinci
Vinci may refer to:
-------------- (6)The illustrative consolidated statement of income presents the accounting of Veolia Environnement using the equity method from January 1st, 2002 and Vivendi Universal Publishing (VUP) assets sold in 2002 and 2003 as discontinued operations in accordance with the option proposed by the paragraph 23 100 of the French rules 99-02. Net profit For the third quarter of 2003, Vivendi Universal posted a net profit of E131 million, versus a net loss of E1,234 million for the same period in 2002. For the first nine months of 2003, Vivendi Universal posted a net loss of E501 million, versus a net loss of E13,540 million for the same period in 2002. Consolidated cash flow from operations For the third quarter of 2003, consolidated cash flow from operations was E1,113 billion, versus E256 million for the same period in 2002, on a pro forma basis. Proportionate cash flow from operations was E682 million, versus -E239 million, in the third quarter of 2002, on a pro forma basis. For the first nine months of 2003, consolidated cash-flow from operations reached E3,327 million, versus E2,045 million for the same period in 2002, on a pro forma basis. Proportionate cash-flow from operations amounted to E2,032 billion, versus E499 million for the first nine months of 2002, on a pro forma basis. This strong performance is the result of Vivendi Universal's continuing focus on cash generation; however this strong performance should not be extrapolated to the fourth quarter of 2003, due to the seasonality of certain businesses. Net debt at the end of September September: see month. 2003 was E12.8 billion, down about E6 billion versus a year ago and E900 million during the quarter, thanks to cash flow from operations and assets disposals. The change in net debt since the beginning of the year reflects the E4 billion acquisition of 26% of Cegetel Groupe S.A. on January 23, 2003, as well as the impact of divestitures totalling approximately E3 billion in enterprise value. Comments on operating income for Vivendi Universal's Media and Telecom businesses: Media activity (as fully consolidated at 100%) For the third quarter of 2003, Media businesses have generated E276 million of operating income and E267 million of cash flow from operations. For the first nine months of 2003, Media activity has generated E922 million of operating income and E1,354 million of cash flow from operations. Cash flow performance has improved significantly, due to the strong performance of VUE and the significant improvement of Canal+. Canal Plus Group (100% Vivendi Universal economic interest):
3rd 3rd
Quarter Quarter 9 Months 9 Months
In millions of 2003 2002 2003 2002
euros Actual Actual Variation Actual Actual Variation
----------------------------------------------------------------------
Revenue 969 1,167 -17% 3,184 3,511 -9%
+3%(a) +2%(a)
----------------------------------------------------------------------
Operating 133 40 N.A. 378 (29) N.A.
Income
----------------------------------------------------------------------
(a)Variation on a comparable basis (excluding all scope changes, principally Telepiu). Significant improvement in Canal Plus Group's operating income. Positive operating income confirmed for the full year 2003. For the third quarter of 2003, Canal Plus Group's operating income of E133 million confirms the significant turn-around observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. in the first half of this year. Subscribers gross recruitments for the Canal+ Premium channel were up in September for the first time in the last seven years thanks to the new program line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. . For the nine months of 2003, Canal Plus Group's operating income totalled E378 million (including non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. items of E118 million), compared with a pro forma operating loss of E20 million for the same period in 2002. The pay television operating income in France was up 84% versus first nine months of 2002, representing more than 60% of Canal Plus Group's operating income, thanks to the good performances of all its units. Operating income from the motion picture business (StudioCanal) also rose significantly. Aside from Telepiu, non-recurring items included new provisions and provision reversals that offset each other. In light of seasonal variations in programming and marketing costs, full-year operating income will be lower than the first nine months result. The figure will, however, be positive for the first time since 1996. Universal Music Group (92% Vivendi Universal economic interest):
3rd 3rd
Quarter Quarter 9 Months 9 Months
In millions of 2003 2002 2003 2002
euros Actual Actual Variation Actual Actual Variation
----------------------------------------------------------------------
Revenue 1,115 1,328 -16% 3,283 4,201 -22%
-9%(a) -13%(a)
----------------------------------------------------------------------
Operating Income 4 16 -75% (38) 185 N.A.
N.A.(a)
----------------------------------------------------------------------
(a)Variation at constant currency. UMG reported a nine months operating loss on decline in revenue The global music market continued to show weakness. UMG reported a profit in the third quarter of E4 million compared to a profit last year of E16 million, reflecting the margin impact of lower sales and a higher proportion of distributed label and joint venture activity partly offset by lower marketing, overhead and catalogue amortization. For the first nine months of 2003, UMG reported operating losses of E38 million, reflecting the margin lost on the revenue decline, restructuring costs and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. income from the sale of assets in 2002 (sale of UMG's interest in MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. Asia to Viacom
Major new releases are scheduled in the fourth quarter of 2003 from Blink 182, 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 . , Busted bust·ed adj. 1. Slang a. Smashed or broken: busted glass; a busted rib. b. Out of order; inoperable: a busted vending machine. 2. , Sheryl Sheryl is a female given name and may refer to: In Business
An icon in the French-speaking world since the beginning of his career, some consider him the French equivalent of Elvis Presley. , Enrique Iglesias Enrique Miguel Iglesias Preysler (born on May 8, 1975, in Madrid, Spain) is a singer/songwriter of Asian and European ancestry. Iglesias's career started on Indie label Fonovisa who helped turn him into one of the most popular artists in Latin America and in the Latin market , G-Unit, Jay Z, Ludacris “Luda” redirects here. For the class of ships, see Luda class destroyer. Christopher Brian Bridges (born September 111977) better known by his stage name Ludacris, is an American rapper and actor. , 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.] , No Doubt, Luciano Pavarotti Noun 1. Luciano Pavarotti - Italian tenor (born in 1935) Pavarotti and Texas. UMG is continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. evaluating its business in order to maintain the most efficient and competitive music company in the industry and be well-positioned for the future. UMG is in the process of instituting significant cost-cutting initiatives that take into account the realities of the declining music market to further rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear the company's cost structure around the world. Furthermore, UMG has launched in the fourth quarter an aggressive plan to reduce the cost consumers pay for CDs by significantly reducing its wholesale prices on virtually all top line CDs in the U.S., with the aim of bringing music fans back into retail stores and driving music sales. While the company believes this sort of fundamental pricing change is necessary for the long term health of the industry, there may be negative implications on near term results. UMG, as the market leader, continues to participate in industry initiatives to combat physical and online piracy piracy, robbery committed or attempted on the high seas. It is distinguished from privateering in that the pirate holds no commission from and receives the protection of no nation but usually attacks vessels of all nations. , and to encourage the legitimate digital music marketplace. UMG expects the worldwide music market to contract compared to the prior year, and as a result, the company performance for the full year will continue to be below 2002. Vivendi Universal Entertainment (86% Vivendi Universal economic interest):
3rd 3rd
Quarter Quarter 9 Months9 Months
2003 2002 2003 2002
In millions of euros Actual Actual Variation Actual Actual Variation
----------------------------------------------------------------------
Revenue 1,305 1,291 +1% 4,267 4,442 -4%
+15%(a) +16%(a)
----------------------------------------------------------------------
Operating Income 197 195 +1% 692 725 -5%
+14%(a) +15%(a)
----------------------------------------------------------------------
(a)Variation at constant currency.
3rd 3rd
In millions of Quarter Quarter 9 Months 9 Months
dollars 2003 2002 Pro 2003 2002 Pro
In U.S. G.A.A.P. Actual Forma(7)Variation Actual Forma(7) Variation
----------------------------------------------------------------------
Revenue 1,479 1,321 +12% 4,603 4,607 0%
----------------------------------------------------------------------
Operating Income 163 217 -25% 700 583 +20%
----------------------------------------------------------------------
On a comparable basis (stand alone, pro forma, in dollars and in U.S. G.A..A.P.), VUE's operating income increased 20%. For the third quarter of 2003, the operating income for VUE increased by 1% and by 14% at constant currency. Stronger performance at Universal Television Production, due to higher sales of classic television library programming and lower overhead costs overhead costs see fixed costs. , was offset by lower results at Universal Pictures due to the higher marketing costs associated with the release of its strong summer slate (Johnny john·ny n. A loose short-sleeved gown opening in the back, worn by patients undergoing medical treatment or examination. English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is , Seabiscuit Seabiscuit famous horse in history of thoroughbred racing. [Am. Hist.: NCE, 1273] See : Horse , and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Wedding). For the first nine months of 2003, the operating income for VUE decreased by 5% in euros and in French G.A.A.P., but increased 20% versus last year on a stand alone, U.S. G.A.A.P., pro forma(6), U.S. dollar comparable basis. The main difference stems from the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak en·er n. of
the U.S. dollar against the euro. On a stand alone, U.S. G.A.A.P., pro
forma(7), U.S. dollar comparable basis, Universal Pictures Group's
operating income increased 34% versus prior year primarily due to the
strength of the current year film slate. Significant 2003 releases
included Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Almighty, American Wedding, 2 Fast 2 Furious and Johnny
English 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, 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 About A Boy, in
2002.Universal Television Networks operating income was down 10% due to increased investment in programming and marketing, which is expected to result in increased operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in future periods, offsetting gains from significantly improved advertising revenue and subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. fees. Operating income at Universal Television Production was up 4%, due to the continued strong performance of the three shows in the Law & Order franchise coupled with cost savings resulting from the merger with USA Entertainment. Universal Parks & Resorts and Spencer Spencer, city (1990 pop. 11,066), seat of Clay co., NW Iowa, on the Little Sioux River; inc. 1880. The city lies in a fertile farm area. Beef is processed, and Spencer's manufactures include work clothes, machinery, prefabricated buildings, and metal products. Gifts operating income increased 9% primarily due to the deconsolidation of Spencer Gifts, sold in the second quarter of 2003. Theme parks operating income was down 9% due to lower attendance at Universal Studios Hollywood Hollywood. 1 Community within the city of Los Angeles, S Calif., on the slopes of the Santa Monica Mts.; inc. 1903, consolidated with Los Angeles 1910. and Universal Studios Japan Universal Studios Japan (ユニバーサル・スタジオ・ジャパン , as a result of continued softness in the global travel industry. -------------- (7)Pro forma basis as if the InterActiveCorp entertainment assets had been consolidated from January 1st, 2002 and the results of Universal Studio international television networks had been reported by Vivendi Universal Entertainment instead of Canal Plus Group. 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. (99% Vivendi Universal economic interest):
3rd 3rd 9 9
Quarter Quarter Months Months
2003 2002 2003 2002
In millions of euros Actual Actual Variation Actual Actual Variation
----------------------------------------------------------------------
Revenue 77 166 -54% 317 502 -37%
-39%(a) -24%(a)
----------------------------------------------------------------------
Operating Income (58) (2) N.A (110) 37 N.A.
----------------------------------------------------------------------
(a)Variation at constant currency. Vivendi Universal Games performance continued to suffer a decline. In the third quarter of 2003, operating loss was E58 million, versus a loss of E2 million for the same period in 2002. Through the first nine months of the year, VUG posted an operating loss of E110 million. The prior year operating income was E37 million, fueled by the strong second quarter results. Lower gross margin on the revenue decline was the most significant contributor to the profit shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. . Moreover, additional royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. expense due in part to titles which did not fully earn out and increased returns/price protection discounting to sell-through sell-through Adjective of the sale of prerecorded video cassettes, without their first being for hire only slow moving titles were the other key variances. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were below prior year, due primarily to marketing. VUG's operating performance is expected to remain depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. in the fourth quarter of this year. A restructuring plan currently being implemented is expected to address those issues. Telecom activity (as fully consolidated at 100%) For the third quarter of 2003, Telecom businesses have generated an operating income of E705 million and E792 million of cash flow from operations. For the first nine months of 2003, Telecom activity has generated an operating income of E1,972 million and E2,301 million of cash flow from operations. SFR- Cegetel (approximately 56% Vivendi Universal economic interest):
3rd 3rd 9 9
Quarter Quarter Months Months
2003 2002 2003 2002
In millions of euros Actual Actual variation Actual Actual variation
----------------------------------------------------------------------
Revenue 1,941 1,804 +8% 5,553 5,246 +6%
----------------------------------------------------------------------
Operating Income 531 460 +15% 1,515 1,206 +26%
----------------------------------------------------------------------
SFR-Cegetel's operating income grew 26% to E1,515 million, due to an efficient cost management. In the third quarter of 2003, SFR-Cegetel operating income was E531 million, up 15% despite some one-time costs linked to the launch of new services and other adverse non recurring items. 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. operating income amounted to E536 million. Fixed telephony losses decreased to E5 million from E26 million in the third quarter of 2002, but part of this improvement is coming from favourable non-recurring events. For the first nine months of 2003, SFR-Cegetel's operating income amounted to E1,515 million, up 26% compared to the same period last year, due to an efficient cost management. Mobile telephony operating income grew 19% to E1,524 million. Fixed telephony operating losses amounted to E7 million, against losses of E78 million last year for the same period. SFR-Cegetel's full year operating income is expected to show a growth of over 30%. Maroc Telecom Maroc Telecom (Arabic: اتصالات المغرب; Itissalatt Al Maghreb; Acronym: IAM) is the main telecommunication . IAM employs around 11,178 employees. (35% Vivendi Universal economic interest):
3rd 3rd 9 9
Quarter Quarter Months Months
2003 2002 2003 2002
In millions of euros Actual Actual Variation Actual ActualVariation
----------------------------------------------------------------------
Revenue 387 399 -3% 1,101 1,115 -1%
0%(a) +3%(a)
----------------------------------------------------------------------
Operating Income 174 111 +57% 457 315 +45%
+62%(a) +51%(a)
----------------------------------------------------------------------
(a)Variation at constant currency. Maroc Telecom operating income experienced a strong 45% growth to E457 million, due to an efficient control of costs. For the third quarter of 2003, Maroc Telecom's operating income amounted to E174 million, up 57% (and up 62% at constant currency) when compared to the same period last year. This very good performance reflects the success of Maroc Telecom's mobile activity with 5 million customers reached in August and the continued tight control of costs. For the first nine months of 2003, operating income reached E457 million, up 45% (and up 51% at constant currency) when compared to the same period last year. This very strong improvement has been driven mainly by mobile sales with a larger pool of customers for lower costs of acquisition, by the reduction of SG&A and bad debt and thanks to last year's restructuring costs. Other profit and loss highlights for the third quarter of 2003 Financing expense of E154 million, to be compared with E377 million for the same period last year. Other financial expenses net of provisions decreased from E193 million in 2002 to E50 million this year, including E48 million of foreign exchange losses. Net exceptional profit amounted to E144 million, including a gain of E72 million related to the increase of capital of Sogecable Sogecable (IBEX-35: SGC) is the leading pay TV company in Spain, created in 1989. It was the first company to introduce interactive systems and specially Digital Television in Spain. , versus a net loss of E735 million in 2002. Income taxes amounted to E212 million, versus E513 million the prior year. Goodwill amortization and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. amounted to E198 million, versus E310 million in 2002.
Analyst Conference Call
Speaker: Mr. Jacques Espinasse, Executive Vice President and Chief
Financial Officer
Date: Tuesday December 2, 2003 4:30 PM Paris time
3:30 PM London time
10:30 AM New York EST
Media invited on a listen only basis.
Conference Call details:
FRANCE: +33 (0)1 70 70 81 78 ou
+33 (0)1 70 70 60 60 - Access code: 784239
UK: +44 (0) 207 019 9504 - Access Code: 716449
US toll free: (1) 866 602 02 58 - Access Code: 716449
US: +00 (1) 718 354 11 53 - Access Code: 716449
Webcast details:
The meeting/call will also be webcast at:
http://finance.vivendiuniversal.com
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 estimated levels of cash-flow and revenues stated will not be realized, the synergies and other benefits associated with certain transactions will not be materialized; 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 and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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; 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 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 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 See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Those documents may also be obtained free of charge from Vivendi Universal. Vivendi Universal does not undertake and expressly disclaims any obligation to provide updates or to revise any forward-looking statements.
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF INCOME
(FRENCH GAAP, UNAUDITED)
-------------------------------------------
Nine Months Ended September 30,
2003 2002 2002
-------------------------------------------
Illiustration VE
equity accounting and
VUP sold affiliates
as discounted As
operations(1) reported(2)
--------- --------------------- -----------
(In millions of euros except per share amounts)
Revenues EUR 18 267 EUR 19 629 EUR 44 541
Cost of revenues (10 232) (11 589) (30 888)
Selling, general and
administrative expenses (5 386) (5 913) (9 891)
Other operating expenses,
net (76) (275) (267)
--------- -------------------- -----------
Operating income 2573 1852 3495
Financing expense (531) (451) (1 052)
Other financial expenses,
net of provisions (339) (3 551) (3 748)
--------- -------------------- -----------
Financing and other
expenses, net (870) (4 002) (4 800)
--------- -------------------- -----------
Income (loss) before
exceptional items, income
taxes, equity interest,
goodwill amortization and
minority interests 1703 (2 150) (1 305)
Exceptional items, net 481 1251 1333
--------- -------------------- -----------
Income (loss) before
income taxes,
equity interest,
goodwill amortization and
minority interests 2 184 (899) 28
Income tax expense (845) (537) (878)
--------- -------------------- -----------
Income (loss) before
equity interest,
goodwill amortization and
minority interests 1 339 (1 436) (850)
Equity (losses) earnings of
unconsolidated companies
and sold affiliates (1) (87) (137) (314)
Equity loss in Veolia
Environnement impairment (3) (190) - -
Goodwill amortization (625) (719) (952)
Goodwill impairment (161) (11 000) (11 000)
--------- -------------------- -----------
Income (loss) before
minority interests 276 (13 292) (13 116)
Minority interests (777) (248) (424)
--------- -------------------- -----------
Net loss EUR (501) EUR(13 292) EUR(13 116)
========= ==================== ===========
Loss per basic share EUR (0,47) EUR (12,45) EUR (12,45)
========= ==================== ===========
Weighted average common
shares outstanding (in
millions) (4) 1 070,8 1 087,9 1 087,9
(1) This illustrative consolidated statement of income presents the
accounting of Veolia Environnement (ex Vivendi Environnement) using
the equity method from January 1st, 2002 and Vivendi Universal
Publishing (VUP) assets sold in 2002 and 2003 as discontinued
operations in accordance with the option proposed by the paragraph
23100 of the French rules 99-02.
(2) As reported in a press release on November 26, 2002.
(3) The impairment loss E190 million corresponds to Vivendi
Universal's 20.4 % interest in Veolia Environnement impairment of
goodwill and other intangible assets (i.e. E440 million), after a
"theoretical" impairment of goodwill initially recorded as a reduction
of shareholder's equity of E250 million, as prescribed by French GAAP.
(4) Excluding treasury shares recorded as a reduction of shareholders'
equity.
VIVENDI UNIVERSAL
CONSOLIDATED STATEMENT OF INCOME
(FRENCH GAAP, UNAUDITED)
----------------------------------------
Quarter Ended September 30,
----------------------------------------
2003 2002 2002
Illustration
VE equity
accounting
and VUP sold
affiliates
as
discontinued As
operations(1) reported (2)
------------- ------------ -------------
(In millions of euros, except per share amounts)
Revenues EUR 5 903 EUR 6 325 EUR 14 551
Cost of revenues (3 029) (3 666) (10 090)
Selling, general and
administrative
expenses (1 943) (1 850) (3 054)
Other operating
expenses,net (35) (208) (202)
------------- ------------ -------------
Operating income 896 601 1 205
Financing expense (154) (183) (377)
Other financial
expenses, net of
provisions (50) (100) (193)
------------- ------------ -------------
Financing and other
expenses, net (204) (283) (570)
------------- ------------ -------------
Income (loss) before
exceptional items,
income taxes,
equity interest,
goodwill
amortization and
minority interests 692 318 635
Exceptional items,
net 144 (877) (735)
------------- ------------ -------------
Income (loss) before
income taxes,
equity interest,
goodwill
amortization and
minority interests 836 (559) (100)
Income tax expense (212) (272) (513)
------------ ------------ -------------
Income (loss) before
equity interest,
goodwill
amortization and
minority interests 624 (831) (613)
Equity (losses)
earnings of
unconsolidated
companies and sold
affiliates (1) (20) 61 (41)
Goodwill amortization (159) (248) (310)
Goodwill impairment (39) - -
------------- ------------ -------------
Income (loss) before
minority interests 406 (1 018) (964)
Minority interests (275) (216) (270)
------------- ------------ -------------
Net income (loss) EUR 131 EUR (1 234) EUR (1 234)
============= ============ =============
Loss per basic share EUR 0,12 EUR (1,13) EUR (1,13)
============= ============ =============
Weighted average
common shares
outstanding (in
millions) (3) 1 071,7 1 088,4 1 088,4
(1) This illustrative consolidated statement of income presents the
accounting of Veolia Environnement (ex Vivendi Environnement) using
the equity method from January 1st, 2002 and Vivendi Universal
Publishing (VUP) assets sold in 2002 and 2003 as discontinued
operations in accordance with the option proposed by the paragraph
23100 of the French rules 99-02.
(2) As reported in a press release on November 26, 2002.
(3) Excluding treasury shares recorded as a reduction of shareholders'
equity.
VIVENDI UNIVERSAL
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
(FRENCH GAAP, UNAUDITED)
As a consequence of the market decline and its strategic re-focusing,
the Company registered significant impairment charges in 2001 and
2002, capital gains or losses resulting from the asset disposition
program, aimed at increasing liquidity and reducing debt, losses
related to the settlement of put options on treasury shares in 2002
and 2003 and fees incurred in connection with the refinancing plan in
the second half-year of 2002 and 2003, all of which have strongly
impacted earnings. The "adjusted net income" does not reflect the
non-recurring impact of these items and provides comparable data on
the Company's operating and financial performance in each period
presented.
Quarter Ended Quarter Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- ---------
EUR 131 EUR(1 234) Net Income (loss) (1) EUR (501)EUR(13540)
Adjustments to determine
Adjusted net income
(33) 28 Financial Provisions (2) (407) 3430
Realized losses reported in other
financial expenses, net of
financial provisions taken
77 - previously (3) (469) -
Other non-operating, non recurring
items reported in other financial
8 259 expenses, net of provisions (4) 145 498
-------- -------- -------- ---------
Subtotal impact on financing and
52 287 other expenses, net 207 3928
(144) 735 Exceptional items, net (1) (481) (1 333)
Equity loss in Veolia Environnement
- - impairment (1) 190 -
159 310 Goodwill amortization (1) 625 952
39 - Goodwill impairment (1) 161 11 000
Income tax (expense) benefit on
- (52) adjustments 47 (385)
(31) (9) Minority interests on adjustments (56) (412)
-------- -------- -------- ---------
EUR 206 EUR 37 Adjusted net income EUR 192 EUR 210
(1) As reported in the unaudited interim consolidated statement of
income.
(2) As at September 30, 2003, comprised of reversal of provisions on
realized losses (InterActiveCorp warrants: E454 million and Veolia
Environnement and BskyB ORA redemption premiums: E63 million and
E39 million, respectively), reversal of a provision related to put
options on treasury shares (E104 million) and other net financial
provision accruals (E253 million).
(3) As at September 30, 2003, mainly comprised of the loss on the sale
of InterActiveCorp warrants (E329 million) and the Veolia
Environnement and BSkyB ORA redemption premiums (E63 million and
E39 million, respectively).
(4) Comprised of losses related to put options on treasury shares
(E104 million as at September 30, 2003 and E475 million as at
September 30, 2002) and fees related to the implementation of the
refinancing plan of the Company initiated in July 2002 (E41
million as at September 30, 2003 and E23 million as at September
30, 2002).The net loss excluding goodwill amortization and
impairment, financial provisions and net exceptionnal items as at
September 30, 2002 published on November 26, 2002 in a press
release amounted to E288 million and included losses related to
put options on treasury shares (E475 million) and fees related to
the implementation of the refinancing plan (E23 million).
VIVENDI UNIVERSAL
OPERATING RESULTS BY BUSINESS SEGMENT
(FRENCH GAAP, UNAUDITED)
ACTUAL(1)
---------------------------------------------
Quarter Ended September 30,
---------------------------------------------
2003 2002 %Change %Change at
constant
currency
---------- ----------- ----------- ----------
Revenues (In millions of euros)
Canal Plus Group EUR 969 EUR 1 167 -17% -17%
Universal Music Group 1 115 1 328 -16% -9%
Vivendi Universal Games(2) 77 166 -54% -39%
Vivendi Universal
Entertainment 1 305 1 291 1% 15%
---------- ----------- ----------- ----------
Media activity 3 466 3 952 -12% -5%
SFR-Cegetel 1 941 1 804 8% 8%
Maroc Telecom 387 399 -3% ns
---------- ----------- ----------- ----------
Telecom activity 2 328 2 203 6% 6%
Others(3) 109 170 -36% -38%
---------- ----------- ----------- ----------
Total Vivendi Universal EUR 5 903 EUR 6 325 -7% -2%
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
(Excluding businesses sold in 2002 and 2003)
Veolia Environnement - 7 184 na
VUP assets sold during
2002 and 2003(4) - 1 042 na
---------- ----------- -----------
Total Vivendi Universal EUR 5 903 EUR14 551 -59%
---------- ----------- -----------
---------- ----------- -----------
Operating income
Canal Plus Group EUR 133 EUR 40 na na
Universal Music Group 4 16 -75% na
Vivendi Universal Games(2) (58) (2) na na
Vivendi Universal
Entertainment 197 195 1% 14%
---------- ----------- ----------- ----------
Media activity 276 249 11% 6%
SFR-Cegetel 531 460 15% 15%
Maroc Telecom 174 111 57% 62%
---------- ----------- ----------- ----------
Telecom activity 705 571 23% 24%
Holding & Corporate (59) (67) 11% 11%
Others(3) (26) (152) 83% 77%
---------- ----------- ----------- ----------
Total Vivendi Universal 896 601 49% 47%
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
(Excluding businesses sold in 2002 and 2003)
Veolia Environnement - 357 na
VUP assets sold during 2002
and 2003(4) - 247 na
---------- ----------- -----------
Total Vivendi Universal EUR 896 EUR 1 205 -26%
---------- ----------- -----------
---------- ----------- -----------
(1) 2003 and 2002 revenues totals represent actual revenue as
published in BALO on November 14, 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).
(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 Editis (ex Investima
10) in December 2002, Houghton Mifflin 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 and operating income
published on June 17, 2003 for EUR80 million and EURO million,
respectively.
ACTUAL(1)
---------------------------------------------
Quarter Ended September 30,
---------------------------------------------
2003 2002 %Change %Change at
constant
currency
---------- ----------- ----------- ----------
Revenues (In millions of euros)
Canal Plus Group EUR 3 184 EUR 3 511 -9% -9%
Universal Music Group 3 283 4 201 -22% -13%
Vivendi Universal Games(2) 317 502 -37% -24%
Vivendi Universal
Entertainment 4 267 4 442 -4% 16%
---------- ----------- ----------- ----------
Media activity 11 051 12 656 -13% -2%
SFR-Cegetel 5 553 5 246 6% 6%
Maroc Telecom 1 101 1 115 -1% 3%
---------- ----------- ----------- ----------
Telecom activity 6 654 6 361 5% 5%
Others(3) 434 612 -29% -22%
---------- ----------- ----------- ----------
Total Vivendi Universal EUR18 139 EUR19 629 -8% ns
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
(Excluding businesses sold in 2002 and 2003)
Veolia Environnement - 22 135 na
VUP assets sold during
2002 and 2003(4) 128 2 777 na
---------- ----------- -----------
Total Vivendi Universal EUR18 267 EUR44 541 -59%
---------- ----------- -----------
---------- ----------- -----------
Operating income
Canal Plus Group EUR 378 EUR (29) na na
Universal Music Group (38) 185 na na
Vivendi Universal Games(2) (110) 37 na na
Vivendi Universal
Entertainment 692 725 -5% 15%
---------- ----------- ----------- ----------
Media activity 922 918 ns 13%
SFR-Cegetel 1 515 1 206 26% 26%
Maroc Telecom 457 315 45% 51%
---------- ----------- ----------- ----------
Telecom Activity 1 972 1 521 30% 31%
Holding & Corporate (213) (254) 16% 11%
Others(3) (114) (333) 66% 62%
---------- ----------- ----------- ----------
Total Vivendi Universal 2 567 1 852 39% 44%
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
(Excluding businesses sold in 2002 and 2003)
Veolia Environnement - 1 368 na
VUP assets sold during
2002 and 2003(4) 6 275 na
---------- ----------- -----------
Total Vivendi Universal EUR 2 573 EUR 3 495 -26%
---------- ----------- -----------
---------- ----------- -----------
(1) 2003 and 2002 revenues totals represent actual revenue as
published in BALO on November 14, 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).
(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 Editis (ex Investima 10)
in December 2002, Houghton Mifflin 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 and operating income
published on June 17, 2003 for E80 million and E0 million,
respectively.
VIVENDI UNIVERSAL
OPERATING RESULTS BY BUSINESS SEGMENT
(FRENCH GAAP, UNAUDITED)
PRO FORMA(1)
----------------------------------------------------------------------
Quarter Ended September 30,
----------------------------------------------------------------------
% Change
% at constant
2003 2002 Change rate
----------------------------------------------------------------------
Revenues (in millions of euros)
Canal Plus Group EUR 969 EUR 1 144 -15% -15%
Universal Music Group 1 115 1 328 -16% -9%
Vivendi Universal Games(2) 77 166 -54% -39%
Vivendi Universal
Entertainment 1 305 1 314 -1% 13%
---------------------------------------------
Media activity 3 466 3 952 -12% -5%
SFR - Cegetel 1 941 1 804 8% 8%
Maroc Telecom 387 399 -3% ns
---------------------------------------------
Telecom Activity 2 328 2 203 6% 6%
Others(3) 109 170 -36% -38%
Total Vivendi Universal EUR 5 903 EUR 6 325 -7% -2%
=============================================
(Excluding businesses sold in 2002 and 2003)
Operating Income
Canal Plus Group EUR 133 EUR 32 na na
Universal Music Group 4 16 -75% na
Vivendi Universal Games(2) (58) (2) na na
Vivendi Universal
Entertainment 197 230 -14% -3%
---------------------------------------------
Media activity 276 276 ns -4%
SFR - Cegetel 531 460 15% 15%
Maroc Telecom 174 111 57% 62%
---------------------------------------------
Telecom activity 705 571 23% 24%
Holding & Corporate (59) (67) 11% 11%
Others(3) (26) (152) 83% 77%
---------------------------------------------
Total Vivendi Universal EUR 896 EUR 628 43% 40%
=============================================
(Excluding businesses sold in 2002 and 2003)
PRO FORMA(1)
----------------------------------------------------------------------
Nine Months Ended September 30,
----------------------------------------------------------------------
% Change
% at constant
2003 2002 Change rate
----------------------------------------------------------------------
Revenues (in millions of euros)
Canal Plus Group EUR 3 184 EUR 3 442 -7% -7%
Universal Music Group 3 283 4 201 -22% -13%
Vivendi Universal Games(2) 317 502 -37% -24%
Vivendi Universal
Entertainment 4 267 5 139 -17% ns
---------------------------------------------
Media activity 11 051 13 284 -17% -7%
SFR - Cegetel 5 553 5 246 6% 6%
Maroc Telecom 1 101 1 115 -1% 3%
---------------------------------------------
Telecom Activity 6 654 6 361 5% 5%
Others(3) 434 612 -29% -22%
---------------------------------------------
Total Vivendi Universal EUR 18 139 EUR 20 257 -10% -3%
=============================================
(Excluding businesses sold in 2002 and 2003)
Operating Income
Canal Plus Group EUR 378 EUR (20) na na
Universal Music Group (38) 185 na na
Vivendi Universal Games(2) (110) 37 na na
Vivendi Universal
Entertainment 692 884 -22% -6%
---------------------------------------------
Media activity 922 1 086 -15% -5%
SFR - Cegetel 1 515 1 206 26% 26%
Maroc Telecom 457 315 45% 51%
---------------------------------------------
Telecom activity 1 972 1 521 30% 31%
Holding & Corporate (213) (254) 16% 11%
Others(3) (114) (333) 66% 62%
---------------------------------------------
Total Vivendi Universal EUR 2 567 EUR 2 020 27% 32%
=============================================
(Excluding businesses sold in 2002 and 2003)
(1) 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
results of Vivendi Universal's businesses (excluding businesses
sold) and the actual results reported by each of the acquired
businesses in each period presented. Additionally, the results 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 results of
Vivendi Universal. The pro forma results are not necessarily
indicative of the combined results that would have occurred had
the transactions actually occurred at the beginning of 2002.
(2) Formerly part of VUP (includes Kids Activities e.g. Adi/Adibou in
France and JumpStart in the United States).
(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.
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