Vivendi SA (VIV.FR) said Thursday it is confirming its 2017 outlook despite recording a double-digit fall in third-quarter net profit.
The French media company said net profit in the three months ended Sept. 30 dropped to 223 million euros ($263.3 million), compared with EUR264 million in the same period a year earlier.
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The earnings beat analyst expectations that Vivendi would post third-quarter Ebita of EUR289 million on revenue of EUR3.24 billion, according to a consensus forecast provided by Factset.
Adjusted earnings before interest and income taxes, or Ebita, which excludes most non-recurring and non-operating items, stood at EUR293 million, compared with EUR277 million in the same period last year. Revenue jumped 19% to EUR3.18 billion, boosted by the consolidation of Havas into Vivendi's results.
Vivendi consolidated Havas for the first time in the third quarter, after acquiring the roughly 60% stake in Havas held by the Bollore Group in July.
Havas contributed EUR34 million to Vivendi's Ebita and EUR525 million to its revenue.
Revenue at subsidiary Universal Music Group grew 0.8% to EUR1.32 billion. UMC's Ebita was EUR156 million, compared with EUR176 million a year earlier. Revenue at Canal+ fell 0.5% to EUR1.26 billion
Vivendi expects revenue to increase by more than 5%, while Ebita should grow by around 25%.
Write to Pietro Lombardi at firstname.lastname@example.org
Corrections & Amplifications
This item was corrected at 12:65 p.m. ET because an earlier version misstated analyst expectations in the third paragraph. Analysts expected Vivendi to post third-quarter Ebita of EUR289 million, according to a consensus forecast provided by Factset. Vivendi therefore beat analyst expectations, with reported Ebita of EUR293 million.
Analysts expected Vivendi to post third-quarter Ebita of EUR289 million, according to a consensus forecast provided by Factset. Vivendi therefore beat analyst expectations, with reported Ebita of EUR293 million. "Vivendi 3Q Net Profit Falls, 2017 Outlook Confirmed," at 1728 GMT, misstated analyst expectations in the third paragraph.
(END) Dow Jones Newswires
November 16, 2017 13:11 ET (18:11 GMT)