Vivendi SA (VIV.FR) said Thursday that it confirmed its economic and financial performance for 2017 in its main business activities.
"Revenues should increase by close to 5% at constant currency and perimeter in 2017," the company said. Earnings before interest, taxes and amortization, after exceptional costs incurred by Canal+, are expected to grow organically by 20% to 25%. This doesn't include the integration of Havas, the communications company in which it acquired a majority stake from Bollore SA (BOL.FR) last summer.
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The French media company had already confirmed its outlook in November, when it said revenues would be up by more than 5% and Ebita by around 25%.
Universal Music Group's momentum in the fourth quarter should lead to an expected revenue growth of about 10% and a close-to 20% increase in Ebita at constant currency, the company said.
Vivendi said that Canal+ saw a satisfactory development in the number of pay-TV subscribers in France, and that growth elsewhere remains strong. Ebita, excluding restructuring, is expected to increase by more than 30% to 365 million euros ($439.6 million), compared with a previous target of around EUR350 million. By 2019, the company's Ebita goal is to reach EUR500 million, it said.
Havas's performance improved compared with the first six months of 2017. This integration is expected to benefit Vivendi next year, and create synergies with its other businesses, the company said.
In the same release, Vivendi said that it is investing around EUR100 million in new activities that will generate new revenue streams.
The French media company will release its definitive earnings on Feb. 15.
Write to Marc Bisbal Arias at email@example.com
(END) Dow Jones Newswires
January 12, 2018 01:56 ET (06:56 GMT)