Vivendi posts vivacious numbers
Operating income up to $607 mil after revamp
Spurred on by topper Messier, the group -- formerly Compagnie Generale des Eaux -- has been on the move in the past year and a half, not only changing its name but restructuring and investing to gain a stronger foothold in each of its main areas: utilities, communication and construction.
In a press conference Wednesday, Messier said Vivendi's operating income was up to 3.4 billion francs, ($607 million) compared with FF1.5 billion ($276 million) for the first half of 1997. Despite market fluctuations, the increase represents a jump of 65% on a like-to-like basis and at constant exchange rates.
Optimal operating income
Operating income plus net financial income also increased from $55 million to $704 million with a net income of $740 million, compared with $648 million for the same period last year.
Vivendi absorbed French group Havas earlier this year to become the major shareholder in paybox Canal Plus and has carved a very comfortable niche in telephony, saying its SFR network is now France's most successful.
For first six months of 1998, Vivendi's utilities and communications divisions generated $12.2 billion, up 18% -- excluding disposals and the consolidation of Havas -- and 10% on a like-to-like basis and at constant exchange rates. Sales for Havas rose 57% over last year.
Looking ahead
Projections for the rest of 1998 are rosy. "We now have an equilibrium between solidity, predictability and increases no matter what happens," Messier said.
Messier added that he would continue plans to move into underdeveloped countries in Southeast Asia -- and especially places that are not already Anglo-Saxon dominated.
For 1998 overall, Messier said Vivendi's net sales should reach $37 billion, up almost 20%. Cash flow from operations is expected to increase by over 80% compared with the previous year.
