Vivendi Reports First-Half-2004 Results

Sep 14, 2004  •  Post A Comment

Vivendi Universal on Tuesday reported a widened loss of 1.86 billion euros ($2.3 billion) for the first half of 2004, compared with a year-earlier loss of 632 million euros, due to a one-time 2.1 billion-euro ($2.6 billion) noncash foreign exchange translation adjustment related to the sale of 80 percent of Vivendi Universal Entertainment to NBC.

Revenue slipped 8 percent to 11.4 billion euros ($14 billion).

Executives at the Paris-based conglomerate stressed that the first-half numbers are difficult to compare with previous years because Vivendi Universal has shed more than 16 billion euros of assets, plus, the company last May sold 80 percent of its Vivendi Universal Entertainment for $14 billion to NBC to create NBC Universal.

But the company said it expected the first-half results to mark the last time the company posted a net loss and accordingly raised its forecast for full-year operating profit to approach 2003 levels, even taking into account the fewer assets in the company’s portfolio.

In addition, starting in 2005 Vivendi expects to receive annual dividends amounting to $500 million from its 20 percent stake in NBC Universal, which will also boost results.