Vivendi Universal Media & Communications Reports Strong First Quarter Operational Results.Business Editors Note to Readers: The unaudited results included in this press release are presented on a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis. This release is intended to be an interim report on the company's Media & Communications revenues, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , 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. and operating free cash flow results. It does not include the results of the company's environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, businesses. As previously indicated, Vivendi Universal will issue its first quarter 2002 income statement, which will be 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 U.S. GAAP, on Monday, April 29th. Complete U.S. GAAP interim financial statements will be available by the end of May. PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. & NEW YORK--(BUSINESS WIRE)--April 24, 2002 Vivendi Universal (Paris Bourse Paris Bourse National stock market of France. : EX FP; NYSE NYSE See: New York Stock Exchange : V;): 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, excluding VU's publishing businesses to be disposed of (including the B-to-B and Health businesses whose sale will be completed in the second quarter), Vivendi Universal's first quarter operational results for media and Communication were: - No significant acquisitions; - Focus on debt reduction; - Focus on operations and cash management; - Focus on synergies that create revenue growth; - Mitigate sources of negative free cash flow. We reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it our 2002 guidance for Q2, Q3 and Q4. Owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de strong results, VU is lowering its estimate of debt/ EBITDA to less than 3 times by December 31, 2002. Vivendi Universal management priorities are : - No significant acquisitions; - Focus on debt reduction; - Focus on operations and cash management; - Focus on synergies that create revenue growth; - Mitigate sources of negative free cash flow. Vivendi Universal (Paris Bourse: EX FP; NYSE: V;) today reported strong revenue, EBITDA, operating income and free cash flow growth for the first quarter ended March 31, 2002. Excluding Vivendi Universal Publishing's (VUP's) businesses to be disposed of, revenues were 6.8 billion euros, up 13%; EBITDA was 1.1 billion euros, up 18%; and operating income was 408 million euros, up 37%. Revenue, EBITDA, operating income and operating free cash flow were all well above expectations in the first quarter. Including VUP's businesses to be disposed of, revenues were 7.1 billion euros, up 12%; EBITDA was 1.2 billion euros, up 16%; and operating income was 436 million euros, up 27%. Operating free cash flow (defined as EBITDA - capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. - changes in working capital - other expenses) was higher than the 2001 period by approximately 0.9 billion euros (pro forma, excluding VUP's businesses to be disposed of), well above expectations. Strong operating free cash flow in the first quarter was driven by collections of receivables from strong sales in the fourth quarter of 2001; improved cash management and seasonally low capital spending. Under U.S. GAAP, net debt by March 31, 2002 fell to approximately 17 billion euros, down from 19 billion euros by December 31, 2001. Summary financial results for Media & Communications compared with the-prior-year period are presented below. Results are shown on a U.S. GAAP basis in all periods presented, and include VUP's businesses to be disposed of.
Vivendi Universal Media & Communications
Revenues, EBITDA and Operating Income
Revenues EBITDA (2)
------------------------ --------------------------------
Actual Pro Forma Actual Pro Forma
2002 2001 (1) Growth 2002 2001 (1) Growth
------ --------- -------- -------- --------- -------
(Unaudited U.S. GAAP basis in millions of euros)
Music 1,364 1,446 -6% 137 180 -24%
Publishing 938 937 0% 43 57 -25%
TV & Film 2,574 2,077 24% 344 300 15%
Universal
Studios
Group 1,375 976 41% 208 165 26%
CANAL+ Group
& Other 1,199 1,101 9% 136 135 1%
Telecoms 2,186 1,833 19% 749 576 30%
Internet 47 42 8% (39) (50) 22%
------ ----- ----- ------ ------ ------
7,109 6,335 12% 1,234 1,063 16%
Holding &
Corporate - - NA (63) (51) -24%
------ ----- ----- ------ ------ ------
Total
Media &
Commun-
ications 7,109 6,335 12% 1,171 1,012 16%
====== ===== ===== ===== ===== ======
Operating Income (3)
----------------------------------
Actual Pro Forma
2002 2001 (1) Growth
--------- ---------- ----------
(Unaudited U.S. GAAP basis in millions of euros)
Music 27 69 -61%
Publishing (31) 1 NA
TV & Film 84 32 163%
Universal Studios
Group 148 101 47%
CANAL+ Group & Other (64) (69) 7%
Telecoms 487 366 33%
Internet (50) (59) 15%
------ ------ --------
517 409 26%
Holding & Corporate (81) (66) -23%
------ ------ --------
Total Media &
Communications 436 343 27%
====== ====== =========
(1) The pro forma information illustrates the effect of the
acquisitions of Maroc Telecom, Houghton Mifflin and MP3.com,
as if these transactions had occurred at the beginning of
2001. The pro forma information is calculated as a simple sum
of the actual results of Vivendi Universal's businesses with
the actual results reported by each of the acquired businesses
in each year presented and includes no other adjustments.
Additionally, the results of Universal Studios international
television networks are now reported by CANAL+ Group. This
reclassification has no impact on results for the total TV &
Film business segment.
(2) As defined by Vivendi Universal, EBITDA consists of operating
income before depreciation, amortization (including
amortization of acquired sports rights at CANAL+ Group and
book plate amortization at Vivendi Universal Publishing),
restructuring charges and other one-time items, and does not
reflect adjustment for any minority interests in fully
consolidated subsidiaries.
(3) Excludes goodwill amortization.
Comments by Chairman and Chief Executive Officer Jean-Marie Messier Jean-Marie Messier (born December 13, 1956) is a French businessman who was Chairman and Chief Executive of the multinational media conglomerate Vivendi SA (formerly Vivendi Universal) until 2002. "The hard numbers in the first quarter show that Vivendi Universal has a winning strategy, and demonstrate our commitment to excellent management and delivering operating results quarter after quarter. In the first quarter, each operating segment delivered its revenue targets, and most segments over-delivered EBITDA and operating free cash flow compared with their budgets. Owing to our strong performance in the quarter, we are lowering our estimate of year-end Debt/EBITDA ratio to less than 3x by December 31, 2002. "In a difficult environment, Vivendi Universal's businesses gained market share. Cash management improved dramatically. Finally, the revenue and cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. achieved in the quarter were significant. Further gains will be driven by improving businesses that currently have negative operating free cash flow: Canal+ and Internet operations. "Vivendi Universal's 2002 priorities are clear: no significant acquisition activity, an aggressive plan for debt reduction, a clear focus on operations and cash management, a focus on developing new synergies to create greater revenues, and a strategy to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the
sources of negative operating free cash flow."Consistent with our commitment to shareholders and employees, we have recently changed CANAL+ Group's management. We fully understood that this would cause a period of disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. , but we are confident that all of our constituencies will soon recognize that this vital step will create benefits for all. "Our highest priority remains building value for Vivendi Universal's employees and shareholders." BUSINESS UNIT HIGHLIGHTS Music: 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 ) reported revenues of 1.4 billion euros, EBITDA of 137 million euros and operating income of 27 million euros for the first quarter. The results represent declines of 6%, 24% and 61% respectively, but an improvement of 24% of operating Free Cash Flow at 415 million euros compared with the results from the same prior-year period. Operating Free Cash Flow increased 79 million euros to 415 million euros in the first quarter of 2002. The performance for the quarter was primarily the result of an expected lighter release schedule, compared to the prior year. UMG's major releases are heavily skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data to the latter part of 2002. The worldwide market for recorded music recorded music n → música grabada was also sluggish during the quarter with the decline estimated at more than 8%, owing largely to an industry-wide slower-than-prior-year release schedule. UMG's revenue decline was much less than the overall music market decline. UMG's market share remains approximately the same as the prior-year period, with declines in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the U.K. offset by increases in Asia and ANZA (Australia/New Zealand/Africa). Best sellers in the first quarter of 2002 included the NOW 9 compilation album; the Grammy Award The Grammy Awards (originally called the Gramophone Awards) are presented annually by the National Academy of Recording Arts and Sciences of the United States for outstanding achievements in the record industry. The current President of the Academy is Neil Portnow. (R) winning Album of the Year "O Brother, Where Art Thou?" soundtrack; Nickelback; and R. Kelly & Jay Z. Local repertoire best sellers included the Devdas soundtrack from India, Star Academy from France and Bro'Sis from Germany. UMG had a strong start for the second quarter of 2002, with 7 out of the top 10 albums in the USA SoundScan Top Current Album Chart, and a 30.2% market share in the first week of April 2002. No. 1 was Ashanti, with the highest first-week sales for a female solo artist's first album in the SoundScan era. UMG's EBITDA and operating income margins were adversely impacted by a product mix dominated by compilations and collaborations with other record companies and higher Artist and Repertoire (A&R) costs, as well as lower levels of activity from sales of releases carried over from 2001. Operating Free Cash Flow increased 79 million euros to 415 million euros in the first quarter of 2002, despite the decline in EBITDA and Operating Income of about 40 million euros. The improvement relates primarily to collections of receivables resulting from higher than usual sales in December of 2001 and lower content acquisition costs. Vivendi Universal expects UMG's releases and financial results for 2002 to be more heavily weighted toward the second half of 2002 than was the case for 2001. UMG's release schedule for the remainder of 2002 includes albums from Shania Twain, U2, 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 . , Limp Bizkit, 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.] , Eminem, Shaggy shaggy /shag·gy/ (shag´e) 1. covered with, having, or resembling rough long hair or wool. 2. having a rough texture or surface or hairlike processes. and Dr. Dre. Local repertoire releases include albums from Johnny Hallyday Johnny Hallyday (born June 15, 1943 in Paris) is a French singer and actor.[1] An icon in the French-speaking world since the beginning of his career, some consider him the French equivalent of Elvis Presley. , Star Academy, Gerard de Palmas Palmas may refer to:
Any of several northern dogs, including the chow chow, Pomeranian, and Samoyed, characterized by a dense, long coat, erect pointed ears, and a tail that curves over the back. In the U.S. and The High Lows (Japan). Publishing: Vivendi Universal Publishing's (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 ) core businesses(1) reported revenues were 608 million euros in the first quarter, up 4% on a pro forma basis, driven by improvements at games and 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 . The first quarter is typically the smallest of the year for VUP. The Games division reported 18% revenue growth and 20% EBITDA growth, due to good performances on PCs and consoles. Vivendi Universal Interactive successfully released Crash 1 and 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 on GBA GBA Game Boy Advance (Nintendo 32-Bit Game Boy) GBA Gran Buenos Aires (Argentina) GBA God Bless America GBA Gundam Battle Assault (video game) GBA Alderney (Game Boy Advance), and Crash 5 on PS2 (Play Station 2) and Spiro 1 on GBA continued to perform well. Sierra Entertainment's Empire Earth release at the end of 2001 has continued its success, especially in Europe. Blizzard Entertainment Blizzard Entertainment, a division of Vivendi Games, is an American computer game developer and publisher headquartered in Irvine, California. History Blizzard Entertainment was founded by Michael Morhaime, Allen Adham and Frank Pearce as Silicon & Synapse pursued the success of its Diablo di·ab·lo adj. Diable. [Alteration (influenced by Spanish diablo, devil) of diable.] series, in particular in Korea with the Diablo 2 expansion pack. The studio is also preparing the biggest launch ever for a PC game with the release of Warcraft 3. In the Publishing & Education division (school, college and kids interactive), VUP experienced 6% revenue and 41% EBITDA growth, driven by Houghton Mifflin College and Kids Interactive in the U.S., a good performance in back-to-school in Brazil for Atica & Scipione and positive trends in school in France. In the Reference group, Larousse continued its expansion, signing a partnership agreement with RSC RSC Royal Society of Chemistry (UK) RSC Royal Shakespeare Company RSC Responsabilidad Social Corporativa (Spanish: corporate social responsibility) RSC Royal Society of Canada Libri to set up an Italian publishing house, Rizzoli-Larousse. In the Literature group, VUP released successful titles in the youth segment in the U.S. and also continued to post strong sales of the Tolkien books both in the U.S. and France. The Consumer division reported 17% lower revenues and 7 million euros lower EBITDA owing to the soft advertising market. EBITDA losses from core businesses improved significantly to a loss of 2 million euros, due to strong growth in games and education. Operating losses 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. from core businesses worsened by 8% due to higher amortization of definite-lived intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to the acquisition of Houghton Mifflin. Excluding this non-comparable item, operating income grew 25%. Operating free cash flow in the publishing business is typically negative in the first half of the year, due to inventory build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. in anticipation of the "back-to-school" selling season. However, despite typical working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for publishing in the first quarter, VUP's core businesses reported positive operating free cash flow of 42 million euros in the first quarter of 2002 (up from negative 87 million euros in the 2001 first quarter). Most of this improvement was attributable to the games division, which benefited from the collection of strong fourth quarter 2001 sales. Operating free cash flow is typically strongly positive for the publishing business in the second half of the year. Warcraft III is expected to negatively impact the second quarter and positively impact the third quarter. TV & Film: CANAL+ GROUP: On a pro forma basis, CANAL+ Group reported 9% revenue growth in the first quarter, primarily driven by StudioCanal, CanalSatellite and Tele+. Globally, subscriptions increased to 16.5 million from 16.2 million one year ago, demonstrating slowing growth. ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. and churn churn: see butter. are flat with the year-ago period. Canal+ Premium Channel revenue fell 3% in the quarter because of lower advertising revenue and lower subscription revenue owing to lower average analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". subscribers. CanalSatellite revenue grew 13% in the quarter driven by higher digital subscribers. Churn was stable at both the premium channel and CanalSatellite. At StudioCanal, revenue grew approximately 70%, driven primarily by library sales and strong current video/DVD sales. In Poland Nowa Cyfra+ was launched on March 1. This new merged digital TV platform brings together the most popular TV and radio channels from the two previous platforms, including the Canal+ premium channel and HBO Hyperbaric oxygen therapy (HBO) A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy , creating a unique and attractive programming line-up. In Italy, Vivendi Universal and Canal+ Group, shareholder of Tele+, signed an agreement in February with News Corporation to acquire the Italian digital TV platform Stream. Italian antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. authorities are currently in the final phase of reviewing the potential transaction. In France, Canal+ Group took over management of the Pathe Sport sports channel Sports channels are television specialty channels (usually available exclusively through cable and satellite) broadcast sporting events, usually live, and when not broadcasting events, sports news and other related programming. after acquiring a 60% interest in March. The transaction heightens the Group's sports profile and program portfolio, as it prepares to launch a new sports channel in the fall to complement its sports offering. In a related transaction, Canal+ Group sold its interest in Monegasque des Ondes, which produces the TMC TMC Technology Marketing Corporation (Norwalk, Connecticut) TMC Texas Medical Center (Houston, TX) TMC Traffic Message Channel TMC The Movie Channel TMC Traffic Management Center channel, while Vivendi Universal's subsidiary Fidimages keeps its 40% stake in the company. Canal+ also positioned itself as an active player in channel creation for the future French digital terrestrial television Digital Terrestrial Television (DTTV or DTT) is an implementation of digital technology to provide a greater number of channels and/or better quality of picture and sound using aerial broadcasts to a conventional antenna (or aerial) instead of a satellite dish or environment by responding in March to a call for license applications with proposals for five pay channels--Canal+, Canal+ Jaune, Sport+, i-television and 13th Street--focused on movies, sports, drama and news. StudioCanal's Brotherhood of the Wolf began its promising run in movie theaters outside France, including in the U.S., totaling close to $70 million worldwide box-office receipts to date. Canal+ Group EBITDA was flat at 136 million euros in the first quarter of 2002. Operating losses declined by 7% to 64 million euros, with the decline at Canal+ France largely offset by improvements at Tele+ and USN. Operating free cash flow improved modestly at Canal+ in the first quarter of 2002 compared with the prior year period, as higher capital spending in the current year period was offset by lower upfront payments payable to soccer clubs in 2002. Tele+ evidenced strong cash flow improvement in the quarter. Canal+ Technologies signed an agreement in Russia to supply the MediaGuard conditional access system A conditional access system (CAS) is a system by which electronic transmission of digital media, especially satellite television signals through cable, is limited to subscribed clients. This is called conditional access. to CJSC CJSC closed joint stock company CJSC Criminal Justice Statistics Center TeleMedium, a digital terrestrial pay-TV platform based in St. Petersburg. During the first quarter, Canal+ Group filed a lawsuit against NDS Group NDS Group plc is a DRM and conditional access firm. It is listed on the NASDAQ (symbol NNDS), but its major shareholder is News Corporation. The company is headquartered in West Drayton (near Heathrow), United Kingdom. The CEO of NDS is Abe Peled. PLC, a News Corporation subsidiary, to recover damages for acts of unfair competition. UNIVERSAL STUDIOS: On a pro forma basis, Universal Studios achieved 41% revenue growth, 26% EBITDA growth and 47% operating income growth. In Filmed Entertainment, revenue grew 48% to 1.2 billion euros in the quarter, due to strong releases, as well as strong video and DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. sales in the quarter; EBITDA was up 22% to 185 million euros and operating income increased 36%. During the first quarter, Imagine Entertainment's A Beautiful Mind, a co-production with DreamWorks Pictures, starring Russell Crowe, won four Academy Awards, including Best Picture, Best Director (Ron Howard), Best Supporting Actress supporting actress n → attrice f non protagonista (Jennifer Connelly) and Best Adapted Screenplay screenplay Written text that provides the basis for a film production. Screenplays usually include not only the dialogue spoken by the characters but also a shot-by-shot outline of the film's action. (Akiva Goldsman). It has grossed more than $271 million worldwide to date. Two modestly budgeted comedies performed well in the first quarter: 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 has taken in $48 million at the U.S. box office to date; and Working Title Films' 40 Days and 40 Nights, a co-production with Miramax, has grossed $97 million worldwide to date. The 20th anniversary re-release of E.T. The Extra-Terrestrial has earned more than $33 million at the U.S. box office to date, making it the third-highest grossing domestic film of all time, after Titanic Titanic (tītăn`ĭk), British liner that sank on the night of Apr. 14–15, 1912, after crashing into an iceberg in the N Atlantic S of Newfoundland. More than 1,500 lives were lost. and Star Wars. After the quarter ended, The Scorpion King, a spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of the Mummy mummy, dead human or animal body preserved by embalming or by unusual natural conditions. As a rule mummies are from ancient times. The word is of Arabic derivation and refers primarily to the burials found in Egypt, where the practice of mummification was perfected series starring World Wrestling Federation superstar The Rock, took in more than $36 million at the U.S. box office its first weekend, setting a U.S. box office record for an April release. The Fast and the Furious home video release, which has logged over 5.5 million units in consumer sales since its January release, currently holds the record for first-week sales. At Recreation, revenue grew 16% in the first quarter of 2002, owing to higher recreation revenue which was driven by higher management fees at Universal Japan and higher attendance at the Universal Studios Hollywood Theme Park. Universal Studios Japan Universal Studios Japan (ユニバーサル・スタジオ・ジャパン finished its first year (March 2002) with 11 million visitors, making it the most successful theme park debut in history. In addition, Universal Studios Hollywood experienced record first quarter attendance. Recreation group EBITDA grew 69% and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. more than tripled in the first quarter. During the quarter, Universal Studios joined the other major studios in forming a new venture to develop industry-wide technical standards for the deployment of digital cinema. Strong operating free cash flow was driven by a strong release schedule, higher video and DVD sales, lower participation payments, more rapid television collections and the timing of capital expenditures at the recreation division. This strength should mitigate in the second quarter. Telecoms: On a pro forma basis, telecoms revenues increased 19% to 2.2 billion euros, EBITDA increased 30% to 749 million euros and operating income grew 33% to 487 million euros. The improved results reflect strong performances across all business units. At SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) , revenues increased 16%, and EBITDA increased 27%. During the first quarter of 2002, SFR's customer base (including its subsidiary in Reunion Reunion Arafat, Mt . Adam and Eve met here after 200 years. [Muslim Legend: Berra, 44] chickweed flower symbolizing a rejoining. [Flower Symbolism: Jobes, 322] Esau and Jacob after many years, they are reconciled. [O.T. , an overseas department of France) grew by 214,000 to 12.8 million customers. SFR's market share of gross additions increased 5% or 1.5 percentage points to 33.8% (from 32.3% in the first quarter of 2001) compared to the first quarter of last year. Additionally, SFR was successful in reducing total acquisition costs by 11% in the same period. ARPU from prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. customers increased 4% to 20.7
euros, and ARPU from postpaid post·paid adj. With the postage having been paid in advance. postpaid Adverb, adj with the postage prepaid Adj. 1. customers increased 2% to 57.9 euros, compared to the first quarter of last year. The total monthly churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. remained stable at approximately 2%. Operating results for Cegetel's fixed telephony services division continued to improve during the quarter, resulting in revenue growth of 37% and a 30% reduction in EBITDA losses. Operating results for Vivendi Telecom International (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 ) also improved, revenues increased 23% to 473 million euros, and EBITDA increased 31% to 198 million euros. Maroc Telecom's revenue is slightly below budget, but all other operating metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. are in line with estimates. Telecoms achieved operating free cash flow of 730 million euros in the quarter (up 293 million vs the prior year period), owing to higher EBITDA, improved working capital management and lower capital spending in the 2002 first quarter period. Net debt at Cegetel Group fell from 1.8 billion euros at December 31, 2001 to 1.2 billion euros at March 31, 2002. Internet: In the first quarter, Vivendi Universal's Internet businesses reported revenues of 47 million euros, up 8% on a pro forma basis, due to 31% growth in Europe and 3% growth in the U.S. Revenues (at 42 million euros) were 10 million euros above budget. The largest contributors to revenue growth in the quarter were E-Brands in Europe and Flipside U.S. Vivendi Universal's internet businesses reported EBITDA losses in the first quarter were 39 million euros, a 22% improvement over last year, and slightly below budget. Operating losses declined by 15%, reflecting a 14% improvement in Europe, partially offset by an 18% decline in the U.S. The improved financial performance was achieved in spite of a depressed online advertising market and reflects the continuing 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). efforts within Vivendi Universal's Internet businesses. Excluding businesses that will be divested as part of the anticipated sale of VUP's business-to-business (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business ) and health divisions, Vivendi Universal's internet businesses revenues increased 11% on a pro forma basis to 43 million euros in the quarter, and EBITDA losses were flat at 34 million euros. The multi-access Internet portal Vizzavi, a joint venture between Vivendi Universal and Vodafone, now accounts for more than 7.5 million registered customers as of March 29, 2002 across 8 European countries (UK, France, Germany, Italy, Greece, the Netherlands, Portugal & Spain). As previously announced by Vivendi Universal and Vodafone, a revised business model will benefit both Vizzavi and the partner's mobile operators by increasing customer usage and revenue. The focus of Vizzavi will be to deliver premium content such at ringtones, logos, games and other downloads. Vizzavi has access to more than 80 million mobile customers across Europe. Business Synergies Vivendi Universal's forecasted synergies for 2002 nearly doubled between 2001 and 2002. EBITDA synergies are in line with the revised targets and are expected to reach over 600 million euros in 2002. Cash synergies should be higher and are expected to reach or exceed 900 million euros in 2002. Cost Synergies: In 2002, Vivendi Universal should exceed its full-year target of 420 million euros. Cost savings in 2002 come from rationalizations in areas including: functional overheads; purchasing and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. ; IT expenses; logistics and manufacturing; and real estate properties. Revenue-Generating Synergies: Vivendi Universal is currently working on multiple revenue-generating synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. projects, focused primarily in cross-content combination; cross-marketing activities; and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. of distribution networks. Cross-Content Combinations: Vivendi Universal's business units are leveraging their content and existing franchises to develop new products based on other businesses or to develop mixed products combining different assets across the company's businesses. For example: Games: Universal Interactive (UI) is developing PC or console games
A console game is a form of interactive multimedia used for entertainment. based on Universal Pictures properties. For example, UI released in the U.S. this month a game based on the movie The Scorpion King for the Game Boy Advance console. Initial results show a promising start with 115,000 units sold to date. Knowledge Adventure is also leveraging Universal Pictures' top priorities by creating edutainment Educational material that is also entertaining. (application) edutainment - Interactive education and entertainment services or software, usually supplied commercially via a cable network or on CD-ROM. PC products for kids. In 2002, for example, Knowledge Adventure will release 'SuperStar Rivals', a game involving Universal Music rock-stars. Music Soundtracks : `The Scorpion King' soundtrack from the Universal Pictures movie, released on April 19th, has had a promising start in the U.S., with sales of close 100,000 copies in its first week. Even before the release of the movie, Universal Music Group had shipped more than 800,000 units. The Universal Records album includes tracks from Godsmack and is now in the Top 10. At the time that Universal Pictures releases the movie '8Mile,' starring Interscope artist Eminem, UMG will release a new Eminem album, singles and soundtrack. Cross-Marketing Activities: Vivendi Universal is increasing its cross-marketing activities across its businesses, using media and customer databases. The most significant example is the cross marketing European effort developed around the release of ET. For example, SFR created an ET interactive pack (France) where customers are able to download a new game on their mobile phone. Canal+ (pan Europe) broadcasted a special documentary with an exclusive interview of Steven Spielberg Noun 1. Steven Spielberg - United States filmmaker (born in 1947) Spielberg . Strategic marketing alliances: The Company has signed a strategic marketing alliance with Toyota Group The Toyota Group (トヨタグループ Toyota Gurūpu involving Vivendi Universal's brands and assets in the U.S. and in Europe. Similar new cross-division's deals will be negotiated in the coming months. Optimization of Distribution Networks: Vivendi Universal is better leveraging its distribution networks, either as an opportunity to increase its revenues and to minimize its distribution costs distribution costs distribute npl → Vertriebskosten pl with a broader distribution of its content, or to keep the margins inside the company rather than to be distributed by third parties. This approach will be further leveraged this year with Vivendi Universal Entertainment (VUE See HP-VUE. VUE - Visual User Environment: a desktop manager for Unix from Hewlett-Packard. ). Theatrical and TV distribution: Studio Canal and Universal Studios are pursuing the optimization of the distribution of their products. They have merged their sales forces in non-French language territories to generate incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue on TV distribution. On theatrical distribution, VUE will distribute in the U.S. StudioCanal's unaffiliated products such as `Brotherhood of the Wolf', `Mulholland Drive' and `The Pianist.' Webcast of Vivendi Universal Shareholder meeting, Wednesday, April 24th, 11am EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , 5pm Paris Time - Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jean-Marie Messier will be hosting the company's annual shareholder meeting in Paris on Wednesday, April 24th, (11am EDT, 5pm Paris Time). You can access the webcast in French or English via the links below: In English: http://www.vivendiuniversal.com/vu2/en/events/_index.cfm, In French: http://www.vivendiuniversal.com/vu2/fr/events/_index.cfm ANALYST CONFERENCE CALL: Vivendi Universal will host a conference call with analysts and investors to discuss the company's first Quarter 2002 Operating Results on Thursday, April 25th, 5pm Paris Time (11am EDT). Dial-in numbers are: U.S. (toll free number): 1 877 939 1575; International: 1 212 547 0146; France: 01 70 75 00 00. Please call 15 minutes prior to the call in order to be connected and indicate you want the Vivendi Universal conference call. The media may dial into the analyst call on a listen-in basis only. Vivendi Universal - Company Description: A consumer-focused, performance-driven and values-based global media and communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , Vivendi Universal is positioned to be the world's preferred creator and provider of entertainment, education and personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. services to consumers anywhere, at any time, and across all distribution platforms and devices. Combining the rich global and local content of its Music, Publishing and TV & Film units, the company leverages the strength of its market-leading brands and products through a broad array of state-of-the-art interactive distribution channels and platforms provided by its Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and Internet units. Important Disclaimer: 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 risk that recently acquired operations will not be integrated successfully; that the synergies expected to be created as a result of recent acquisitions 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. ; that Vivendi Universal will be unable to further identify, develop and achieve success for new products, services and technologies; that 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; that Vivendi Universal will be unable to establish and maintain relationships with commerce, advertising, marketing, technology, and content providers; and that Vivendi Universal will be unable 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 with 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 web site at www.sec.gov. Those documents may
also be obtained free of charge from Vivendi Universal.Note To Readers: The table reflecting Business Unit Segment results for Media and Communications for the first quarter of 2002 is attached to this press release (1) Core businesses exclude VUP's operations to be disposed of, including the business-to-business (B2B) and health divisions and Comareg (free sheets).
Vivendi Universal Media & Communications
Revenues, EBITDA and Operating Income (3)
Revenues EBITDA (2)
------------------------------ ----------------------------
Actual Pro Forma Actual Pro Forma
2002 2001 (1) Growth 2002 2001 (1) Growth
------------------------------ ----------------------------
(Unaudited U.S. GAAP basis in millions of euros)
Music 1,364 1,446 -6% 137 180 -24%
Publishing 938 937 0% 43 57 -25%
TV & Film 2,574 2,077 24% 344 300 15%
Universal
Studios Group 1,375 976 41% 208 165 26%
CANAL+ Group
& Other 1,199 1,101 9% 136 135 1%
Telecoms 2,186 1,833 19% 749 576 30%
Internet 47 42 8% (39) (50) 22%
----------------------------- ----------------------------
7,109 6,335 12% 1,234 1,063 16%
Holding &
Corporate - - NA (63) (51) -24%
----------------------------- -----------------------------
Total Media & 7,109 6,335 12% 1,171 1,012 16%
Communications
===========================================================
Operating Income
------------------------------------
Actual Pro Forma
2002 2001 (1) Growth
------------------------------------
(Unaudited U.S. GAAP basis in millions of euros)
Music 27 69 -61%
Publishing (31) 1 NA
TV & Film 84 32 163%
Universal
Studios Group 148 101 47%
CANAL+ Group
& Other (64) (69) 7%
Telecoms 487 366 33%
Internet (50) (59) 15%
-------------------------------------
517 409 26%
Holding &
Corporate (81) (66) -23%
-------------------------------------
Total Media & 436 343 27%
Communications
=====================================
VIVENDI UNIVERSAL
MEDIA & COMMUNICATIONS
BUSINESS SEGMENT RESULTS
(U.S. GAAP Basis)
Three Months Ended March 31, % Growth
-------------------------------------------------------------
Actual Actual Pro Forma Actual 2002 vs Actual 2002 vs
2002 2001 2001 (1) Actual 2001 Pro Forma 2001
-------------------------------------------------------------
(Unaudited in millions of euros)
Revenues
Music 1,364 1,446 1,446 -6% -6%
Publishing 938 817 937 15% 0%
TV&Film 2,574 2,077 2,077 24% 24%
Universal
Studios
Group 1,375 1,001 976 37% 41%
CANAL+
Group
& Other 1,199 1,076 1,101 11% 9%
Telecoms 2,186 1,495 1,833 46% 19%
Internet 47 19 42 139% 8%
-------------------------------------------------------------
Media &
Communications
Revenues 7,109 5,854 6,335 21% 12%
=============================================================
Reconciliation
of Media &
Communications
EBITDA
(2) to
Operating
Income
Music 137 180 180 -24% -24%
Publishing 43 103 57 -58% -25%
TV&Film 344 300 300 15% 15%
Universal
Studios
Group 208 134 165 55% 26%
CANAL+
Group
& Other 136 166 135 -18% 1%
Telecoms 749 433 576 73% 30%
Internet (39) (49) (50) 20% 22%
------------------------------------------------------------
1,234 967 1,063 28% 16%
Holding &
Corporate (63) (51) (51) -24% -24%
------------------------------------------------------------
Media &
Communi-
cations
EBITDA 1,171 916 1,012 28% 16%
Less:
Depreciation (495) (369) (424) -34% -17%
Amortization (143) (138) (139) -4% -3%
Amort of Canal+
Sports
Rights (100) (95) (95) -5% -5%
VUP Book
Plate
Amortization (15) (8) (8) -88% -88%
Restructuring
charges (3) (5) (5) 40% 40%
Other
one-time
items 21 2 2 NA NA
------------------------------------------------------------
Media &
Communications
Operating
Income 436 303 343 44% 27%
============================================================
Operating
Income
Music 27 69 69 -61% -61%
Publishing (31) 58 1 -153% NA
TV&Film 84 32 32 163% 163%
Universal
Studios
Group 148 69 101 114% 47%
CANAL+
Group
& Other (64) (37) (69) -73% 7%
Telecoms 487 265 366 84% 33%
Internet (50) (55) (59) 9% 15%
--------------------------------------------------------------
517 369 409 40% 26%
Holding &
Corporate (81) (66) (66) -23% -23%
--------------------------------------------------------------
Media &
Communications
Operating
Income 436 303 343 44% 27%
==============================================================
(1) The pro forma information illustrates the effect of the
acquisitions of Maroc Telecom, Houghton Mifflin and MP3.com,
as if these transactions had occurred at the beginning of
2001. The pro forma information is calculated as a simple sum
of the actual results of Vivendi Universal's businesses with
the actual results reported by each of the acquired businesses
in each year presented and include no other adjustments.
Additionally, the results of Universal Studios international
television networks are now reported by CANAL+ Group. This
reclassification has no impact on results for the total TV &
Film business segment.
(2) As defined by Vivendi Universal, EBITDA consists of operating
income before depreciation, amortization (including
amortization of acquired sports rights at CANAL+ Group and
book plate amortization at Vivendi Universal Publishing),
restructuring charges and other one-time items, and does not
reflect adjustment for any minority interests in fully
consolidated subsidiaries. EBITDA is presented and discussed
because Vivendi Universal management considers it an important
indicator of the operational strength and performance of its
Media and Communications businesses, including the ability to
provide cash flows to service debt and fund capital
expenditures. However, it should be noted that EBITDA is not a
substitute for operating income, net income, cash flows and
other measures of financial performance and Vivendi Universal
EBITDA may not be strictly comparable to similarly titled
measures widely used in the United States or reported by other
companies.
(3) Excludes goodwill amortization.
--30--mem/sdg/fap/ny*
CONTACT: Vivendi Universal
Media Relations:
Paris
Martine Esquirou, +33 (1).71.71.3120
Antoine Lefort, +33 (1).71.71.1180
Alain Delrieu, +33 (1).71.71.1086
or
New York
Anita Larsen, +(1) 212.572.1118
Mia Carbonell, +(1) 212.572.7556
or
Investor Relations:
Paris
Laura Martin, +33 (1).71.71.1084 or 917.378.5105
Laurence Daniel, +33 (1).71.71.1233
or
New York
Eileen McLaughlin, +(1) 212.572.8961
KEYWORD: NEW YORK INTERNATIONAL CANADA
INDUSTRY KEYWORD: ENTERTAINMENT FOODS/BEVERAGES MOTION PICTURES
CONFERENCE CALLS EARNINGS
SOURCE: Vivendi
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