VIVENDI UNIVERSAL REPORTS POSITIVE Q2 NUMBERS
Of The Words "EBITDA" And "Euro"
Excluding Maroc Telecom—that Moroccan telephone company we’ve all been so interested in, which VU consolidated for the first time this quarter—revenue growth was 8% and EBITDA growth was 35%. For the first half of 2001, the company generated strong EBITDA growth of 77% to 2.2 billion euros versus pro forma results for the first half of the prior year (62% excluding Maroc Telecom). Revenues for the same period last year were 12.4 billion euros, reflecting a 15% increase over the pro forma first half 2000, excluding Universal Studios Group Filmed Entertainment, and 11% overall excluding Maroc Telecom.
"The results produced by Vivendi Universal in the second quarter are well ahead of market consensus," said Jean-Marie Messier, Vivendi Universal Chairman/CEO. "They confirm the robustness of our businesses, with limited exposure to advertising; the benefits of a truly global position; and the fast progress of the reorganization and implementation of our recent merger. I can only re-emphasize our confidence. We will at least meet our stated targets."
In the second quarter, Universal Music Group (UMG) generated double-digit EBITDA growth of 17% to 271 million euros, reflecting strong performances in the U.S., Japan, and in UMG's music publishing business. Revenues were flat in the second quarter, versus a very strong comparable quarter in 2000 and in spite of an adverse business environment. Universal Music Group recorded a strong performance in 2001, with first-half revenue growth of 2% and EBITDA growth of 16%. UMG market share in the first half versus the comparable period last year has increased in Japan and the U.K. and essentially remained constant in the U.S.
Major album sales in the quarter included those by Blink-182, D12, Shaggy and the "Moulin Rouge" soundtrack, among others. Second half 2001 scheduled releases include albums by Elton John, Andrea Bocelli, Sheryl Crow, DMX, Brian McKnight, The Cranberries, Aqua, Mary J. Blige and Enrique Iglesias.
Vivendi Universal and UMG continue to pursue strategic initiatives to deliver music content online to consumers, including the Pressplay joint venture and the acquisitions of MP3.com, EMusic and GetMusic.
"Music has been able, in a weak market, to slightly increase its revenues, continue to strengthen its leadership, both through releases and successful cross-border sales. These factors, coupled with management's continued focus on cost reductions, produced strong double-digit EBITDA growth," Messier added. "Internet performance is on track relative to our 2001 target. In terms of audience—in the U.S. and Europe—Vivendi Universal will rank eleventh, and second amongst media companies, once the MP3.com acquisition is finalized."
